Members of the Saddam and Pramod gang were arrested by the Ghaziabad and Bagpat Police after nearly an hour of exchange of fire at a factory near Banthla Canal, they said.
Their leader Pramod, however, managed to escape.
Information was received about the presence of the gang in the factory, after which police personnel reached the spot.
The gang members were told to surrender, but they started firing at the police party, which retaliated, police said.
After the shootout, five members were arrested.
Four pistols have been seized from them.
Police said the gang members were planning to rob a businessman in Delhi of Rs 4 crore.
