The incident occurred when the policemen were trying to remove encroachment upon a land in Mathura on the directions of the Allahabad High Court, IG (Law and Order) H R Sharma told PTI.
"Santosh Kumar, SHO, Sarah police station was killed in firing by the encroacher, whereas SP (City) Mukul Dwivedi also sustained bullet injury and he critical," he said.
Sharma said around 3000 encroacher pelted stones and later opened fire at the police team as they reached the spot.
Four more policemen were injured in the clash with two sustaining bullet injuries, adding, the operation is still on.
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Chief Minister Akhilesh Yadav expressed grief over the incident and announced an ex-gratia of Rs 20 lakh to the family of the deceased policeman.
He directed the Additional Director General of Police (Law and Order) to rush to the spot and bring the situation under control.
He also directed that additional police reinforcement be rushed to the area and the guilty be arrested.
Over two years ago, activists of splinter group of Baba Jai Gurudeo, claiming themselves to be member of 'Azad Bharat Vidhik Vaicharik Kranti Satyagrahi', had occupied hundreds of acres of land of Jawahar Bagh on the pretext of 'dharna'.
The high court, acting on a PIL, had recently directed the authorities to vacate the land.