Two policemen were also injured in the encounter.
Anandpal, who had managed to escape from custody of police while being taken back to high security prison in Ajmer from a court in Nagaur in September 2015, had taken a shelter in a house.
"He was alone in the house in Churu district and opened fire at police from rooftop when the police surrounded the house and challenged him.
"In the exchange of fire, he was killed," DGP Manoj Bhatt told PTI.
Before the encounter, the state police made a major breakthrough earlier in the day by catching Anandpal's brother Rupendra Pal singh and his aide Devendra alias Gattu from Sirsa in Haryana.
Each of them carried a reward of Rs one lakh on their head.
They shared the details of Anandpal's whereabouts following which the house was surrounded in Churu.
Close to 100 aides of Anandpal were arrested from different places after his escape in 2015 but the gangster remained the major challenge for the state police.
Disclaimer: No Business Standard Journalist was involved in creation of this content
