The incident took place in North East Delhi's Sonia Vihar area around 5:30 AM here.
The accused identified as Firoz alias Fauji, an Uttar Pradesh-based suspected gangster, was on a motorcycle when a team from the Special Cell of Delhi Police intercepted him and asked him to surrender.
"Instead of stopping, Firoz tried to flee opening fire on the police party. In retaliatory fire made by the police, he was hit in the abdomen. He was rushed to a nearby hospital where doctors declared him brought dead. A weapon was recovered from his possession," said a senior police official.
"Firoz was a known criminal in East Delhi and parts of Uttar Pradesh. He was involved in a number of cases of robberies and snatching," the official added.