A prominent businessman of Jamshedpur Vishwanath Garg and his driver, who were abducted on July 17, have been rescued by the police after a brief encounter with their kidnappers which left one dead.

Garg and his driver Deepak Kumar were rescued from a house in Kankarbagh locality of this city after an encounter late Monday night.

The businessman, who was kidnapped from Chandil area of the steel city, and his driver have been taken to Jamshedpur for a family reunion.

Sources said the police raid on the hideout of the kidnappers followed the arrest of Rajkumar Singh, a member of the notorious Dilip Singh gang, recently.

When the police reached the hideout and commanded the kidnappers to surrender and hand over the businessman, they were fired upon. In retaliatory fire, one of the kidnappers was killed. Three kidnappers have been arrested, the sources said.

Garg was kidnapped on the night of July 17 when he was on way from his office in Chandil to his home in Sonari Ashiana locality.