The accused, who carried a reward of Rs 10,000, sustained a gunshot injury in his left leg during the exchange of fire and has been admitted at the Gwalior district hospital, the police added.
The accident occurred in Jaderua area under the jurisdiction of Murar police station in the district on Monday. There were three persons riding on the bike, the rider died on the spot while the rear persons sustained injuries and were undergoing treatment in the district hospital.
The deceased was identified as Shailu Kushwaha (40), a resident of the Murar locality in the district. He was a councillor from ward 3 of the Gwalior cantonment area.