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An alleged member of the Ravi Pujari gang was shot in an encounter with the police on Friday while he was extorting money from a builder, the police said.
Acting on a tip off that a member of Pujari gang had arrived at the residence of the builder, who also deals in imitation jewellery business, near Diamond Garden in Chembur to extort money, the police reached the spot and laid a trap.
The gangster was demanding Rs 25 lakh from the builder.
The police told him to surrender but he fired two rounds at them, the police said, adding the gangster sustained bullet injuries when the police fired back in defence.
The gangster, who claimed to be associated with Pujari gang, was immediately rushed to nearby hospital. Further probe was on.