In the wake of the incident, Punjab Chief Minister Prakash Singh Badal has called a meeting of senior officials including State Chief Secretary Sarvesh Kaushal and a high alert had been sounded in Punjab with security around railway stations, airports, inter-state bus terminuses and other places of key importance stepped up, officials said.
Police said a group of youths dressed in police uniform stormed the jail and opened indiscriminate fire at the jail here.
Those who fled with the armed men include gangster Vicky Gondar, Gurpreet Sekhon, Nita Deol, Vikramjeet, and terrorist Mintoo, police said.
Mintoo was arrested by Punjab Police from Delhi's IGI Airport in 2014. He was arrested in connection with 10 cases including the 2008 attack on Sirsa-based Dera Sacha Sauda chief Gurmeet Ram Rahim Singh and recovery of explosives at Halwara Air Force station in 2010.
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Punjab DGP Suresh Arora rushed to Nabha after the incident.
Asked if it was a major security breach at the high-security prison, he told reporters in Chandigarh that, "I am going there (Nabha) to see".
He said further details are awaited.
Advisor to the Punjab Chief Minister Vineet Joshi said the incident was related to "cross-border terrorism".
Terming the incident as "unfortunate" and an
"embarrassment", Joshi said, "We should try to understand the forces behind this. At this moment we believe this is cross border and not localised."
In another development, a woman was killed when police opened fire at a vehicle which had jumped a barrier.
The incident occurred at a 'naka' on Patiala-Gulha Cheeka road. Police tried to stop the car, but its driver did not stop despite being asked to and when police opened fire, a woman who received the gunshot wounds was killed.