The incident took place yesterday when a trader Haji Mohammad Hussain (45) and Majid Khan (38), who are both residents of Nimbaheda in Rajasthan, Mandsaur district's Superintendent of Police (SP) M L Varma told reporters here today.
Two others associated with them also suffered bullet injuries, the SP said.
The assailants identified as Babu, his son Sayeed Abdul and seven others chased Hussain and his associates and fired at them a number of times after which they were killed.