Anil Srivastava, who runs a private consultancy firm, was abducted from Gudumba area on Monday evening when he had gone to inspect a site along with his driver, they said.
Police said the abductors forced Sivastava to call his family members and arrange Rs two crore.
The engineer's kin informed police which tracked the movement of the abductors through electronic surveillance, which revealed that Srivastava was taken to Sant Kabir Nagar, they said.
Meanwhile, Srivastava's family negotiated with abductors, who agreed to release him for a ransom of Rs 10 lakh.
Police said the abductors were arrested last evening near Novelty crossing when they came to collect the ransom amount and Srivastava was rescued.
Srivastava's former employee Alim was among those rescued.