The bomb exploded in Chalitra Singh Bhokta's hands while he was trying to figure it out without realising that it was an explosive, Superintendent of Police Satyaprakash said.
Bhokta died on the spot, while another man Ravindra Kumar sustained injuries, he said. The injured man was admitted to a Primary Health Centre (PHC).
Bhokta lifted the bomb from a roadside area where police had left it after recovering some bombs from under the road, which the Maoists had planted to deter movement of vehicles of security forces, Satyaprakash said.
The security forces were rushed to the spot to find out whether more bombs have been planted underground or in surrounding areas, he said.