A former Maoist turned gangster was killed on Monday during an exchange of fire with police at Shadnagar town near Hyderabad, officials said.
Late on Sunday night, the special police team of Telangana State police had rounded up a house located at millennium Township in Shadnagar town of Mahbubnagar district after receiving an alert about the movement of renegade Maoist Md Nayeemuddin.
On Monday morning, a gun man of Nayeemuddin opened fire on the police and in the resultant encounter; Nayeemuddin was gunned down, Telangana DGP Anurag Sharma said.
Mahabubanagar district Superintendent of Police Rema Rajeswari told reporters that one AK47 was found and a pistol was recovered from Nayeem's vehicle.
The police officer said an extortion case was registered against a suspected person in Nizamabad district. The suspect had demanded Rs 1 crore.
"An investigation team and local police reached here following information about the movement of the suspect in a white Ford Endeavour," she said.
Nayeem or Mohammed Nayeemuddin was an extortionist named in several high-profile cases, the police say, including the murder of a senior police officer in 1993.
He is also suspected to have given information to the police on Sohrabuddin Sheikh, the petty thief whose encounter killing by the Gujarat police in 2005 became hugely controversial and led to a tangle of cases for everyone involved.
The gangster had escaped from police custody 11 times.
Prime Minister Narendra Modi, who visited Telangana for the first time yesterday, was briefed about the encounter in a meeting with Home Minister Rajnath Singh and National Security Adviser Ajit Doval this morning.