Randeep Singh Rana and Jagrup Singh Rupa were arrested and two loaded rifles, two automatic loaded pistols and live bullets in large quantity were recovered from them, DCP Punjab Police Kostub Sharma said.
Acting on a tip off that a group of gangsters with ammunition were moving about in a white car and planning to commit a crime, police traced the car, Sharma said.
Police party intercepted the car near the Railway crossing line at Haripura area, following which the accused fired shots at them, he said.
Police teams have been deployed to nab the remaining two accused, he said, adding, the area where the exchange of firing took place has also been cordoned off.