According to police, last evening three youth attempted to loot the impounded vehicles parked near Tara Devi area and when the police tried to overpower them, it led to a scuffle.
During that a constable opened fired in self defence, killing Uday Singh Panwar, they said.
The constable fired at the leg, but Panwar decked and the bullet pierced through the abdomen resulting in excessive bleeding and his death in IGMC hospital last night, police said.
Parents of the deceased accused the police of murdering their son and said even if he was involved in some illegal activity, police had no right to kill him.
The police said that while the three youth were trying to take away the goods from vehicles, police overpowered one of them while the two others, Harsh Sharma and Nitin fled.
They returned after sometime in a car to rescue their accomplice and attacked the police.
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One of the constables fired in self defence killing Uday Singh and injuring Sharma, police said.
A crowd gathered at the Boileau Ganj police station today demanding action against the erring police constable and later they moved to IGMC hospital when the body was taken for post mortem.
Hundreds of vehicles were stranded as the crowd 'gheraoed' the hospital for more than two hours. One of the injured youth was admitted to the hospital while the other was still at large.
Police constables Ranbir Singh and Rahul were booked and placed under suspension.
The Deputy Commissioner, Shimla, has ordered a magistrate inquiry into the incident and appointed Additional District Magistrate (ADM), N K Lath as enquiry officer. He has been asked the submit the report within fifteen days.
The police said that the accused had a criminal record and were involved in some cases earlier also.