Four villagers, including a sarpanch were abducted by a group of Maoists who had attacked Tolo Guluru village and torched five vehicles including a tractor on Saturday night, Sunabeda sub-divisional police officer V R Rao.
Two of the hostages, including a former sarpanch were killed by the red rebels, while the abducted sarpanch and another person were set free, the police said.
The two bodies were sighted in the nearby forest by the villagers this morning and the police was informed. A police team is on way to the spot.
The Maoists, who abducted the four men and torched the vehicles had left letters and banners at the spot claiming that the incident was a fallout of killing of two of their comrades in an exchange of fire with security forces on March four in neighbouring Mungulivalsa village.
While the posters claimed that police had taken the help of villagers in the operation, the police have dismissed it.