Four suspected Indian criminals have been shot dead by the police in an encounter at Sirsiya in Birgunj, a town bordering India's Raxaul district.

The armed dacoits were killed in retaliation, after they opened fire at a police patrol at Sirsiya bridge on Tuesday night, according to the police. Two guns, two revolvers, a mobile phone and over a dozen bullets were recovered from the dacoits.

The police suspect that the deceased worked for gangster Munna Sharma. Sharma's gang has been involved in extortion, abduction and murders in southern Nepal.

The gang is also active in Bihar's Motihari district and recently claimed responsibility for two killings in Birgunj. A few months earlier, two members of Sharma's gang were killed in a similar encounter.

Meanwhile, the Nepal police have received reports about Indian-origin businessmen in Birgunj being threatened by local criminals, who pretend to work for Sharma's gang.

These businessmen recently blocked the Birgunj Pathaliya road for two hours to demand that the police take action against the culprits immediately.