All the four, from whom loaded pistols have been recovered, have received gunshot injuries but are out of danger, Deputy Commissioner of Police (South) H G S Dhaliwal said.

The gunbattle broke out between police and the gang led by Satya Prakash alias Satte, who is based in neighbouring Uttar Pradesh, near a bank in Green Park at around 4 p.m., he said.

Five members of the gang managed to escape from the scene, Dhaliwal said.

Satya Prakash was among the injured, Dhaliwal said.

Police had information that the gang would come to rob a bank in Green Park this afternoon and a trap was laid near an RWA gate in the area.

The gangsters were travelling in two cars, a Honda Accord and Santro and they tried to flee from the scene when they were intercepted near the gate.

The gangsters in the Honda Accord car opened fire on the police team which retaliated. Meanwhile, the five persons in the other car managed to escape.

"Four of them who opened fire at the police team were injured in the retaliatory firing while others managed to escape," Dhaliwal said.

The injured gangsters were rushed to AIIMS where doctors declared that they were out of danger, the senior police officer said.

"We had information that the gang is coming to this area for loot. They knew about some movement of cash near the bank," he said adding four pistols were seized from them.

The injured suffered multiple gunshot injuries and were identified as Satya Prakash, Shakeel, Sonu and Nadeem, who is of either Afghan or Uzbeck orgin, Dhaliwal said.

Dhaliwal said the gang possessed sophisticated imported weapons. "Our personnel were well prepared. They were wearing bullet-proof jackets," he said.

Joint Commissioner of Police, Southern Range, Ajay Kashyap said none of the policemen were injured in the encounter.

The gang members were "having high quality firearms which are made across the border." They had a lengthy police record. Satya Prakash is a resident of Nandnagri while Shakeel is a resident of Mustafabad.

Police have launched a massive man hunt for the rest of the gang members. Delhi Police Commissioner Y S Dadwal has announced a reward of Rs 25,000 for anyone who will provide information about them.

The injured were taken to All India Institute of Medical Sciences. "Four injured were brought here. Two of them had sustained bullet injuries in chest while another two were shot in hand and leg," said Biplab Mishra, Assistant Professor Surgery, AIIMS trauma centre.