The arrested activist was wanted for murdering Mithilesh Yadav, Mukhiya (Headman) of Kharauj village panchayat, Patna SSP Manu Maharaj said.
Janesh Yadav, the arrested Maoist, had accumulated property worth crores of rupees by extorting businessmen, contractors, industrialists and prosperous farmers.
"Yadav was picked up from Chitrakut Nagar locality where he was constructing his house. He had murdered Mithilesh, a strongman of the area, in 2008 and was absconding ever since," Maharaj said.
The Patna SSP said Janesh was recruiting members for CPI (Maoist) in the area. He used to induct innocent youths by luring them with money or by threatening to harm their family.
Police officials said the arrested Maoist has confessed about his involvement in several crimes, including the murder of Mithilesh.