Two police personnel were also injured in the incident.
Babu, who sustained a bullet injury on his left leg, has been admitted to the SCB Medical College and Hospital here for treatment.
Acting on a tip off about, Special squad of Commissionerate Police lay in wait on Barang-Chandaka road where Babu was to cross on a motorcycle.
When the police team signalled Babu to stop, the latter left the motorcycle in the middle of the road and ran into the field, and soon opened fire at the police team, in which two cops sustained injuries.
Police retaliated and a bullet hit Jagga on his left leg.
Police also seized a gun and live ammunitions from his possession.
Babu is involved in more than 20 cases of dacoity, loot and attempt to murder under different police stations in the State, police said.