Twenty-seven-year-old Tiki Bisoi alias Debananda succumbed to bullet injuries at MKCG Medical College and Hospital during treatment, police said.
Bisoi had sustained gunshot injures on his both legs and right arm during the exchange of fires between police and him on late night of Saturday. He was first admitted at sub-divisional hospital, Bhanjangar and shifted to medical college later, sources said.
Described as the most wanted by the police and a "sharp-shooter" of Ganjam, police said Bisioi was allegedly involved in at least 15 various crimes including three murder, attempt to murder and dacoity cases. Of them at least nine cases were in Bhanjanagar police station, sources said.
Police said he was involved in the sensational murder of Khairaputi panchayat sarapanch Tilaka Bisoi last year and Toffan Bisoi in 2010 which had occurred in Bhanjanagar police station limits.
Police also recovered a pistol and at least three live ammunitions from his possession, said SP (Ganjam) Ashish Kumar Singh.
At least two of his associates who were with him during the encounter, could manage to escape from the spot by a motorbike, said sub-divisional police officer (SDPO) Bhanajnagar Ramesh Chandra Sethi.
They have been identified and police has intensified manhunt to nab them, police said.
SDPO said Bisoi first opened fire on the police party near Gamundi village while they were returning after conducting raids in Bhaliakhai area of the district. Police men retaliated and fired at least three rounds before nabbing an injured Bisoi, they said.