The deceased were identified as Enamul Haque Enar, 46, and accused in eight cases including murder, robbery.
District DB OC Obaidur Rahman said acting on information that several drug traders were staying on Meherpur-Kathuli road in Battala area, a team of DB police conducted a drive there.
Sensing present of the law enforcers, the drug traders opened fire on them, prompting them to retaliate, triggering a gunfight.
After the gunfight, police recovered the bullet-hit bodies of Enamul from the scene. Three policemen were injured in the incident.
Besides, 63 bottles of Phensidyl and an LG shooter gun were recovered from the spot.