Joni, who is wanted in at least 25 criminal cases and carrying a reward of Rs 1 lakh, was critically injured during exchange of fire in the village, SSP B B Singh said.
His associates Arun and Sanjay took him to another place in serious condition after which he succumbed, the SSP said, adding, his associates tried to burn his body.
Police rushed to the spot, recovered the half-burnt body and arrested his associates, Singh said.
A rifle and 25 cartridges were recovered from their possession, he said.