Kashmira was wanted in 19 cases and the police had announced a reward of Rs 5,000 for information leading to him.
Acting on a tip-off that he and his associates would pass through Kansal village under Fatehgarh police station limits, a police team nabbed them after a brief shoot-out late last night, said Guna City Superintendent of Police Antar Singh Kanesh.
While both sides fired at each other, nobody was injured. However, two of his associates managed to flee, police said.
Police also seized two rifles, two pistols and a motorcycle.
Kashmira's gang had created a terror in the area and recently they had attacked camp of a road contractor, police said.