However, two others managed to flee from the encounter spot in Naina Devi, famous for a hilltop Hindu shrine.
"A team of Punjab Police was chasing five gangsters, who snatched a car from Sohana in Mohali (in Punjab). As the police signaled the criminals to stop their vehicle, one of them fired at the police. The police retaliated and fired back. One of the criminals died in the process," Bilaspur Superintendent of Police Ashok Kumar told IANS.
The dead criminal was identified as Sunny Masih of Gurdaspur in Punjab, he said. Two identified as Amanpreet and Goldy were arrested, while the hunt is on for the remaining two.
Mohali Senior Superintendent of Police Kuldeep Singh Chahal and senior police officials reached the encounter spot.
As per the police, several cases of extortion have been registered against the criminals in Punjab.
The encounter spot, some 130 km from the state capital, is located close to Punjab.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)