The accused, identified as Satyaprakash, headed a gang under an alias Satte and had a reward of Rs 1 lakh on his arrest, said DCP (Special Cell) Sanjeev Yadav.
Satyaprakash came out on bail from Tihar jail in May this year and allegedly executed a series of robberies followed by the murder of a friend-turned-enemy Sonu Chikna in October, said Yadav.
The police arrested one Khurwesh Pehalwan in connection with the murder. During interrogation, Pehelwan disclosed that he, along with the gang-leader Satte and other associates, shot dead Chikna, said Yadav.
Satte was stopped by the police personnel and he fired at the team, following which the officials retaliated and later managed to overpower him.
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Satte formed his own gang of pickpockets, which later became infamous as Delhi's most desperate Bank robbers gang, years ago when he was a teenager.
One of his gang members, Kuldeep alias Sonu, who was injured in a shoot-out at south Delhi's Green Park, was earlier a member of alleged drug-lord Sharafat Sheikh's syndicate, said police.
After Giri was killed in an encounter with Noida police in 2006, Satte's position became unchallenged.
Satte, a native of Badayun in UP, married twice and both his wives were staying with him at Nandnagri, police added.