Another gangster, Prema Lahoria, the mastermind of the sensational Nabha jail break in November 2016, was also killed in the police operation this evening, they said.
A notorious criminal was injured while another was arrested, they said.
Two policemen also suffered injuries in the encounter at a 'dhani' (a small conglomeration of houses) near Pakki village -- just 50 metres from Punjab border in Rajasthan, Director General of Police (Intelligence), Punjab Police, Dinkar Gupta said in Chandigarh.
Acting on a specific intelligence, an OCCU team, led by AIG Gurmeet Chauhan, raided the 'dhani' where the dreaded gangsters were provided shelter by another criminal, Lakhwinder Lakha, around 6:30 pm.
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"Our two cops, Sub Inspector Baljinder Singh and ASI Kirpal Singh, were injured in this operation," DGP Gupta said.
Punjab Chief Minister Amarinder Singh has lauded the state police for eliminating the notorious gangsters.
"Congratulations to Punjab Police for killing most wanted gangster Vicky Gounder and his aide Prema Lahoria. Excellent work by DGP Suresh Arora, DG Intelligence Dinkar Gupta and OCCU team, including AIG Gurmeet Singh and Inspector Vikram Brar. Proud of you boys," the chief minister tweeted.