An exchange of fire was ongoing on Monday between police and a suspected gangster hiding in a house in Telangana’s Shadnagar town, police sources said.

Gangster Nayeem, involved in killing some top former Maoists, was hiding in the house in Millennium Township in Shadnagar in Mahabubnagar district, about 50 km from Hyderabad.

The operation began Monday morning when police were conducting searches in the town.

Armed policemen surrounded the house, following a tip-off about presence of the gangster.