Gora was wanted for his alleged involvement in the Atharnala bombing case, sources said.
The accused Gora Mallick has sustained bullet injury on his right leg during the encounter with a police team. Following the incident, Gora has been shifted to SCB Medical College and Hospital for treatment.
A pistol, gun power and live crude bomb have been seized from his possession.
Police said Gora was involved in the firing incident in Puri on April 8 and had also lobbed crude bombs on a businessman on April 10.