The man had invited some children and women from the Indian village to his house, saying he was throwing a birthday party for his daughter.
The hostages who were held at gunpoint were safe, principal secretary home Awanish Kumar Awasthi said after the raid at the house in a village in Farrukhabad in Uttar Pradesh state.
The hostage taker was serving a life sentence for murder and was out on parole, he added.
It was noted Indian police shot dead a man holding around 20 women and children hostage at his house after a 10-hour standoff. Two policemen and a villager were injured in the rescue operation.
After the siege, a group of incensed villagers stormed the house where the children had been kept and attacked the hostage-taker’s wife, Awasthi said. The woman died from her injuries, Reuters reported.