SSP Akash Kulhari said some miscreants looted around Rs 13 lakh from a cloth merchant in Jalalpur town in Ambedkar Nagar and tried to fled from the spot.
A police team chased the looters following which they fired at them.
In the ensuing encounter, one Balraj alias Bablu (25) was killed and his accomplices Abdullah, Fayan and Veer Bahadur Vishwakarma were arrested.
