The man was arrested on Thursday night while on the run, the police officer said.
A 35-year-old man was arrested for allegedly beheading two tribal children at a village in Latehar district, the police said on Friday.
The headless bodies of an 11-year-old boy and a 10-year-old girl were found buried under a pile of sand beside the accused's house in Semarhat village on Thursday.
A police officer said, "It is not a case of human sacrifice or black magic as suspected by a section of the villagers."
Deputy Inspector General of Police Vipul Shukla said the man is an accused and was out on bail when he allegedly committed this crime.
He was arrested from Pachhkhedi Chowk on Thursday night while on the run, the police officer said, adding he has been admitted to Sadar Hospital he showed signs of mental illness.
"The accused used to run a shop in his house. When the girl arrived there on Wednesday night he tried to abuse her and the boy reached there by chance, he took them inside his house and beheaded them with an axe. The weapon has been recovered from him," DIG Shukla said.
The head of the boy was found buried in a different spot near the house of the accused, but he is misguiding police about the location of the girl's head, he said, adding the accused had allegedly killed his brother-in-law and uncle in 2009 over some dispute and was on bail.
The torsos of the two children were handed over to their families after post-mortem examination. They were later buried as per the custom of the community, police sources said.