Akhaya Nayak alias Panda of Athagadapatna village in Kabisurya Nagara area was admitted at Khallikote hospital after he sustained bullet injures.
He is stated to be out of danger.
Police seized a pistol and two rounds of ammunition and a motorcycle from him, SP (Ganjam) Narsingh Bhol.
Nayak, 24, was identified as one of the members of the Rabi Das gang and wanted by the police in at least eight different cases, including attempt to murder, bombing, extortion and dacoit cases in Kabisurya Nagar, Polasara and Kodala police station limits.