The deceased, Malek, 40, was the leader of a robber gang locally known as Malek Group, reports our Chittagong correspondent.
Police arrested three associates of Malek -- Md Shfique, 20, Nur Mohammad, 22, and Md Jomir, 32 -- from the scene after the gunfight, said Mohammad Azad Mia, superintendent of police (SP) of Cox's Bazar.
Acting on a tip-off, a team of police led by Babul Akhter, additional superintendent of police in Cox's Bazar, raided a hillock at Noakhalipara, north-west off Baghghona bazaar in Habibchhora area, around 3:30am, the SP said.
Sensing their presence, the robbers opened fire at the law enforcers prompting police to retaliate that triggered a 'gunfight'.
At one stage, the law enforcers managed to nab the three robbers while the rest fled the scene.
Later, they found the bullet-riddle body of Malek lying on the ground.
Police recovered a single barrel gun, two Light Guns, two bullets of rifle, 11 cartridges, seven bullet shells, two machetes, an axe, two masks, 12 cell phone sets and Tk 20,800 cash from the possession of the arrested robbers, the SP added.
Abdul Munnaf, a sub-inspector, and Md Nazmul and Md Monsur, two constables of Teknaf Police Station sustained minor injuries, said Mohammad Forhad, officer-in-charge of the police station.
Among the arrestees, Md Jomir is reported to be a Rohingya, the OC added.
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