Two wings of the self-described Ambazonian Defence Forces (ADF) had claimed responsibility for the abduction, a senior local official said.
In an army raid on a "terrorist refuge" in Ashong late on Monday" several hostages were freed, including the senator," army spokesman Cyrille Atonfack Guemo said in a statement.
He did not provide the exact number of people liberated.
"A dozen terrorists were neutralized, several others wounded and fled. Three were captured," he said.
Mundi, who hails from the Northwest Region, is a member of the politburo of Biya's Cameroon People's Democratic Movement (RDPC).
In 2017, separatists seeking self-rule in the Northwest and neighbouring Southwest Region declared an entity called the Federal Republic of Ambazonia.
Clashes between militants and security forces have claimed more than 6,000lives and displaced around a million people, according to the International Crisis Group (ICG).
The separatists have frequently carried out kidnappings, usually of civil servants, and some have been killed. Church leaders and politicians have also been adducted but mostly are later freed.
The country has been ruled with an iron fist for nearly 40 years by89-year-old Biya, who refused demands for federalism and has cracked down on the rebellion.
Civilians have suffered abuses committed by both sides, according to international NGOs and the United Nations.
The presence of the anglophone regions derives from the colonial era.
The former German possession of Cameroon was partitioned after World War I between Britain and France.
In 1961, part of the British territory, the Southern Cameroons, joined Cameroon after it gained independence from France, becoming the Northwest and Southwest regions.
Anglophones have long chafed about perceived inequality, especially in education and law.
Thank you for the article ENCA
Contribute to your future, a Non Profit Organization and buy us a Coffee with 3 simple clicks and a minute of your time. Imagine what we can do together.
To thank you, we will call you personally.
This is the amount that will be distributed amongst the current shareholders.
Current Share Holders
89/500,000