Hyderabad, May 1: Alleged gangster and extortionist Azeez Reddy, an aide of underworld don Chhota Rajan, was shot dead in an encounter with police in the posh jubilee hills area here.

Acting on a specific information that Azeez alias Venkat Reddy was moving along with some of his gang members, a police team conducted searches in the area late last night following which the operation took place, a police official said.

"We had information that Reddy was moving in a black Innova car in connection with a land deal. While checking the vehicle, Azeez Reddy whipped out a pistol and opened fire on police and in a retaliatory fire he was killed," a police official said.

Reddy had links with the Chhota Rajan gang and was allegedly involved in several criminal cases in Mumbai, the official said.

Police Commissioner Prasad Rao said Reddy was involved in several extortions, murders and kidnaps both in Hyderabad and Mumbai. After he fled to Mumbai, he came in contact with Chhota Rajan and became a member of his gang, Rao said. Reddy was also arrested once for possessing illegal weapons.

Azeez Reddy is a native of Nalgonda district in Andhra Pradesh.