According to police, the mother and brother of the accused, identified as Uday Gond (28), often used to fall sick and he believed that the "black magic" practiced by his aunt Budhan Bai was behind their illness.
"The incident took place yesterday at Jalke (Belbahrapara) village under Korbi police outpost," Katghora Sub-Divisional Officer of Police (SDOP) Sanjay Mahadeva said.
He said Gond, carrying an axe, allegedly stormed into Budhan's house, located in the neighbourhood, and started thrashing her.
"Meanwhile, the victim ran towards the vegetable field in the back of the house but the accused managed to chase her and chopped her head off," he said.
Gond later tossed the severed head in air and threw it some distance away from the body before fleeing, Mahadev said.
On hearing the screams of the victim, locals informed the police, Mahadeva said, adding a case has been registered against Gond who is yet to be arrested.