Four persons, including a girl, were killed by suspected Maoists in Bundu, 40 km from here, police said on Friday.
The militants started firing indiscriminately at the house of Pradeep Munda of Barihatu village on Thursday night, police said.
Eyewitnesses told the police that over 60 Maoists surrounded the area and attacked the house of Munda, who was suspected to be a police informer, with sophisticated weapons.
Munda, two guests and his eight-year-old daughter were killed.
Police have begun a combing operation in that area.
Bundu is home to a dreaded Naxal, Kundan Pahan. It has seen five major massacres in the last three years. The local legislator, Ramesh Singh Munda of the Janata Dal (United), DSP Pramod Kumar Sinha and Special branch inspector Francis Induwar were killed by Maoists.
In another incident, Maoists and the security forces exchanged gunfire on the borders of Lathehar and Gumla district, police said.