Gorakhpur (Uttar Pradesh), Jun 7 (IANS): A dreaded gangster and accused in the murder of a BSP leader, who had been operating from Nepal, has been shot dead by the Uttar Pradesh Special Task Force (STF) in an encounter.

Sharpshooter Pervez Ahmed had escaped to Nepal after killing BSP leader Jugaram Mehndi and the police had declared a reward of Rs 1 lakh on his arrest.

STF DSP Dharmesh Kumar Shahi told reporters that Pervez Ahmad was killed in an encounter at Sarharai Road in Pipiganj of Gorakhpur area on Sunday when he was seen on a motorcycle with one of his associates.

Ahmad, a resident of Makhdoomnagar in Ambedkar Nagar district, was also a close aide of underworld don Khan Mubarak.

He operated from Nepal and smuggled fake currency notes in Uttar Pradesh districts and Nepal.

STF sources said that Ahmad had come to Gorakhpur from Nepal to meet someone and the Pipiganj police surrounded him at Chiluatal area. The police asked them to surrender, but he opened fire at the police team.

Ahmed was killed in retaliatory firing, the police said.

The police also recovered one 0.32 mm pistol, one 9mm pistol along with Rs 500 from his possession.