At least 20 Maoists stormed the site of a private construction company - Ranjan Construction - and held its employees hostage before setting the office on fire, one JCB and two tractors, deputy superintendent of police Arvind Gupta said.
The proprietors of the company had apparently failed to pay the levy demanded by the ultras, he said.
The Ranjan construction company was engaged in the construction of roads in a village under the Prime Minister Grameen Sadak Yojana, Gupta said.
A case has been registered in this connection and raids were being carried out jointly by the local police and the Special Task Force (STF), the DSP said.