"Sunil Sharma, carrying reward of Rs 15 thousand, was injured in the encounter in Gomti Nagar area here. He later died during treatment in the hospital," Senior Superintendent of Police, Deepak Kumar said.
Sharma, who was lodged in Hardoi jail, had fled from police custody from Lucknow, where he was bought for a hearing.
He had last month allegedly threatened a businessman in Saroji Nagar area and demanded money from him.