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They were challenged by a police team and during an exchange of fire, three of them were injured and arrested, Superintendent of Police, Jugal Kishore, police said.
Three policemen — Inspector Jai Narain Shukla, constables Avnish Vikram Singh and Ravindra Yadav — were injured in the encounter, they said.
Those arrested include Israr alias Budhau and Santosh Tiwari, who carry a reward of Rs 50,000 each, and Dileep, who carries a reward of Rs 25,000, police said. The gang of dacoits were wanted in a number of cases.