A joint team comprising the Armed Police Force (APF) and Indian Police rescued Mahato, according to APF Inspector Darshan Giri.
Indian police are investigating the owner of the house where Mahato was found blindfolded and tied with ropes.
Meanwhile, police have already arrested Devendra Yadav of Harkati-4 suspecting that he aided the abductors.
The abductors had demanded Rs 1 million in ransom.
Four people trapped in avalanche rescued