The encounter took place at Madhuri village under K Nuagaon police station limits, about 15-km from here in Ganjam district.
The accused, identified as Danda Moharana, received bullet injures in his left leg during the encounter. He was admitted at MKCG Medical College and Hospital here and then shifted to SCB Medical College and Hospital, Cuttack for treatment. His accomplice managed to escape, said in charge SP (Berhampur) Ashish Singh.
A motorcycle, one revolver and three empty cartridges were seized from Moharana, he added.
At least 23 different cases, including robberies, dacoities, attempt to murder, extortion, firing and bombing were pending against Moharana in various police stations in the district.
Moharana belonged to Radha Krushan Street under Berhampur town police station limits. Some of the crimes were allegedly committed along with the ex-MLA, said the SDPO.