On a tip-off that a group of men had gathered at Khetrawarpahar near the village, the police rushed to the spot at around 4 AM and a gun battle broke out lasting for about two hours, Superintendent of Police Sudhir Kumar Jha said.
Policeman Abdul Satar was injured in the encounter and has been admitted to a hospital in Ranchi.
During search operation, blood stains were found indicating injuries sustained by the Maoists.
The SP said the police were ascertaining the identity of the splinter group.