The sum was stolen from one Yusuf by five motorcycle borne robbers on April 10, said SHO Muradnagar Subodh Saxena.
The culprits have been identified as Sajid, Shehzad, Dilshad, Naushad and Rashid. A total of Rs 8.50 lakh, two motorcycles, two country-made pistols, two live cartridges and one knife was recovered from their possession, he said.
They confessed to their crime during the interrogation. They accepted that they were watching the movement of Yusuf in Meerut Tehsil where he had gone to collect Rs 10 lakh, he said.
As the duo reached near Mariam Hospital in Muradnagar robbers waylaid them and attempted to snatch away money bag from Yusuf.
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In the scuffle that ensued one of the robber fired a gunshot injuring Yusuf's right leg and snatched away the money bag, police said.
An FIR under section IPC 394 (voluntarily causing hurt in committing robbery) was registered at police station Muradnagar.
All five robbers have been sent to jail, police said.