Deputy Superintendent of Police (Musaboni) Ajit Kumar Vimal said the incident occurred on Sunday.
One body was recovered on Wednesday and search was on for the other body, Vimal said.
Police started searching for Rangai Bodra and her 20-year-old daughter Mejo Bodra as soon as they were reported missing on Tuesday, he said.
The villagers have been tight-lipped over the issue, he said.
The incident came to light after the police detained six villagers and interrogated them, he said.
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The villagers told police that six villagers, including one Bagun Bodra killed Rangai and her daughter for allegedly practising witchcraft, the police officer said.
After committing the crime, the accused have dumped the bodies in a nearby jungle, he said.
Bagun had lost his three-year-old son recently. He held Rangai and her daughter responsible for his son's death and decided to eliminate them, he said.
Vimal said three accused were arrested and search is on for others.
Bagun is absconding, he said.
Meanwhile, the police recovered Mejo's body, he said.
A case has been registered in connection with the incident, he added.