The youth was identified as Mithun Bhuyan. He was wanted in eight different police station like Bhanjanagar, Buguda, Jagannath Prasad and others, police said. He was admitted to the MKCG Medical College Hospital.
A motorbike, one pistol, two magazines and four round of ammunition were seized from him, while one of his accomplices Babu Nayak fled from the spot, SP (Ganjam) Asish Singh said.
"We chased the vehicle for about an hour to nab them, while the duo coming from Durgaprasad to Bhanjanagar in the motorbike early in the morning," the SP said adding police has intensified patrolling in the area to arrest Babu Nayak.
Police said Bhuyan was the mastermind in loot of a jwellery shop at Balipadara under Buguda police station limit on November 11, 2016.
It was the second encounter between the police and anti-social in a week. The last encounter had taken place at Chanchadapalli-Barapalli jungle on December 27 while police arrested Shayam Sundar Gouda (23) of Lathi village on the outskirt of the village.