"Area commander Boleshwar sub-zone committee Dukhi Sao alias Jagirji was arrested last night at Panki Bazar in Palamau," Superintendent of Police N K Singh said here.
He said Sao was wanted in the attack on a team of personnel of Border Security Force.
A BSF jawan had been killed and two others were injured in Palamau district eight years ago in an encounter.
Sao was also wanted in 12 other cases of murder, abduction and landmine blasts, the police officer said.