Rakesh Khatta, wanted in over 44 criminal cases including that of murder and attempt to murder, was killed in the encounter with police in Halgoya village in Rampur area of Saharanpur
Khatta's accomplice Binte was also killed in the encounter, they said.
Khatta had fled from the police custody in October 2014 and was carrying Rs 2.5 lakh reward on his arrest.
"An SLR (self loading rifle) and carbine looted from policemen, 2 rifles, and 2 pistols of nine mm and three country-made pistols and large number of cartridges have been recovered from his possession," Director General of Police (DGP) AK Jain said here.