The encounter took place late last night.
On a tip off, a team comprising policemen and SOG rushed to the Kakraiya canal bridge here and challenged four motorcycle-borne persons, SSP Vaibhav Krishna said.
In the exchange of fire, the alleged criminal who sustained injuries was arrested and rushed to hospital where he later died while others managed to escape, the SSP said, adding the deceased was identified as Sunder Singh, carrying a cash reward of Rs 15,000 on his head.
A pistol, a country-made weapon and a bike have been recovered from the encounter site, the SSP added.
Three policemen including the station officer of Bakewar police station, Alok Rai were injured in the encounter late last night and admitted to hospital.
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