On Monday evening they killed the village guards – Manik Khila and Jagabandhu Khila – and their bodies were found near their villages bordering Andhra Pradesh on Tuesday.
The Maoists released five persons on Tuesday afternoon after severely assaulting them.
"A naib-sarpanch and a former sarpanch are still in their captivity," Malkangiri superintendent of police Akhileswar Singh told Hindustan Times.
Meanwhile, in a joint operation, police and CRPF unearthed 34 landmines weighing between 2kg and 20kg and more than 10 grenades from a forest area under Kotagarh police station in Kandhamal district, about 250km southwest of Bhubaneswar.
"Most of the landmines have been defused by a bomb disposal expert accompanying the operation," said Kandhamal superintendent of police JN Pankaj.