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In the exchange of fire, two of the suspected smugglers sustained bullet injuries.
Senior Superintendent of Police, Rohit Singh Sajwan said that on a tip off that some persons were going to slaughter cows, a police team reached a forest area between village Ruhasa and Chakbandi.
The suspected smugglers opened fire leading to retaliatory action from the police, Sajwan said.
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Illegal arms have also been recovered from the cattle smugglers, the SSP said.
An FIR has been registered against them at Daurala police station under relevant sections of the IPC.