Panday was in the news recently after actor Shah Rukh Khan lodged a complaint against him for extortion.
The AEC received a tip-off that the two gangsters were planning to kill a corporator. A team from the AEC tracked them down at Powai and asked the duo to surrender. But they refused and were killed in the ensuing encounter.
A pistol, a revolver and two hand-made bombs were recovered from the two men, identified as Imran and Ramkumar Sahane alias doctor. According to the police, Sahane has a number of cases of attempt to murder and extortion registered against him in Uttaranchal and Uttar Pradesh.
The police point out that this is Panday's usual modus operandi. He hires goons from UP to threaten those people who refuse to give in to his extortion demands.