The meeting continued for three hours and 15 minutes in the presence of legal experts. There was no official confirmation on what was discussed.
"The meeting was quite constructive," said Buch, former chief secretary of Madhya Pradesh. Chhattisgarh CM Raman Singh said: "I am optimistic and look forward to a positive solution."
Sources close to the developments said the demands listed by the rebels were on the agenda. They included releasing innocent under-trials languishing in various jails of the state, halting the Green Hunt (anti-rebel chase) and stopping combing operations.
The second round of negotiations is likely to be held on Friday.
Earlier in the day, former CPI MLA Manish Kunjam returned from the jungle where the Maoists have been keeping Menon hostage since Saturday.
Kunjam, who is a tribal from Bastar, said Menon was safe. However, the Maoists did not let him meet the officer.
"I gave the medicines," said Kunjam. He briefed Menon's wife, Asha, about his visit.