Acting on a tip-off, that Hussain was to visit the Cotton Exchange building in the evening, the special squad headed by Deputy Commissioner of Police (Crime), Param Bir Singh, laid a trap.

Hussain arrived at the spot at 6.30 pm, and when asked to surrender, fired two rounds at the cops from a revolver.

Constable Palande of the squad was hit by a bullet, but was saved as he was wearing a bullet-proof vest.

The police fired two rounds in self defence, injuring Hussain seriously.He was rushed to the KEM hospital, where he was declared dead before admission.

Police sources said Hussain was involved in 17 serious offences, including murder, extortion and rioting in the north-eastern suburbs of Mumbai.Hehad allegedly assaulted a shakha pramukh at Govandi in 1993, also injuring his wife and son in the attack.

Hussain had also masterminded the murder of two constables, Bhalerao and Sawant, at Shivajinagar in 1997.

Hussain was at present out on bail, but the police had received three complaints against him from city businessmen who had been recently threatened by him for extortion.

Today's encounter was executed by ACP Pradip Sawant, Senior PI Babar, PI Angre, PSI Kadam and constable Palande.

In a related development, the Unit II of Crime Branch today arrested Raju Philips, a key associate of gangster Arun Gawli, for his alleged involvement in the murder of four of Gawli's henchmen who had dared to stray from his gang.

Sudhir Surve and his younger brother Shashikant, Pandurang Madvi and Naresh Surve, once considered to be close to Gawli, were executed for having parted ways with the gangster in different shootouts at Byculla between August 15 and September 14.

Four Gawli gangsters, including Philipswere named as the accused in the First Information Report filed by the Agripada police in connection with the Byculla murders. The Special Operation Squad and a team of officers from Zone II had raided Gawli's stronghold Dagdi Chawl on September 15 in this connection.