Mukhjit Singh (38) was shot dead Tuesday night on the outskirts of the city at Verka locality near Mudhal village after he alllegedly defied police signal to stop and fired at a police team which was in civilian dress, police said.
Singh's family have demanded registration of murder case against the policemen and their dismissal from service.
Police claimed that a car being driven by Singh, who was party president for Verka block, defied police signal to stop. The car was signalled to stop as police had "specific information" that gangster Jaggu - wanted in cases of murder and dacoity - was travelling in it.
The police retaliated and he was killed on the spot, police said.
A senior police officer said they mistook Singh as wanted gangster Jaggu.
Family members are demanding immediate arrest of all police men involved in the case under section of 302 IPC besides their immediate dismissal from service.
SAD activists have planned protest against the killing.
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