Hacked bodies of the Dalit woman and her 5-year-old nephew were found in Luhari Khurd village on December 20.
According to the police, three persons have been arrested and the accused have confessed to the crime.
"Two accused and one police constable sustained bullet injuries during the encounter," Superintendent of Police (City) Ombir Singh said.
He added that two pistols, large number of cartridges and a bike was recovered from the accused.
Notably, the police had formed three special teams to trace the killers after the villagers staged a protest over the incident.
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