The incident occurred last night when a eight-member police team of Balanagar police station comprising sub-inspector Venkat Reddy and others reached Majidpur crossroads area based on information that a gang indulged in circulation of fake currency notes, Telangana Home Minister Nayani Narasimha Reddy said today after visting the scene.
As the police team attempted to catch the gang members passing in a vehicle, they suddenly came under attack with swords and knives, and in the process one constable Eshwar Rao and SI Venkat Reddy sustained serious injuries, the Minister said.
Following the attack, the police team fired in self-defense on the gang members in which one Mustafa died even as others managed to flee, Reddy said.
The Minister further said that the government will extend all financial assistance to the family members of the deceased constable and one of the family members will also be provided government employment.
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"Stern action will be initiated against the accused involved in the attack on policemen," he said.
Cyberabad Police Commissioner C V Anand, who too visited the spot, told reporters "as per information available with us, one Yellam Goud of Siddipet town in Medak district, was heading the gang which indulged in fake currency circulation."
Goud, who was involved in robbery and dacoity offences had come out of jail around two months ago and formed this gang, the Cybderabad Police chief said.
Four special teams have been formed to nab the absconding gang members, police said.