Mumtaz Ali, an e-rickshaw trader, was kidnapped from Nepal on April 8 and was held hostage in Rishibhum locality in Risia, Superintendent of Police, Salikram Verma said.
Acting on a tip off, police arrested four persons from the area and rescued Ali, he said.
The arrested have been identified as Munnan, his wife Ashameen, Abdul Sattar and Shivkumar Pathak.