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The encounter took place in the morning when a police team, acting on a tip-off, surrounded a gang of suspected cattle smugglers near the Gumsani village, Superintendent of Police Chakresh Mishra said.
Constable Arjun Khatri suffered a bullet injury on his hand during the gunfire exchange, he said.
The police said two injured smugglers, identified as Saif Ali and Shan Mohammad, were arrested.
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The gang allegedly smuggled cattle for slaughter, the police said, adding that a detailed probe is underway.