A gang of eight allegedly led by Selim Haider opened fire on Jahangir Alam Adil, 32, son of Ali Hossain, near Anwar Goalbari at around 4:00pm, sources said. Adil, a leader of local Jumman Member Bahini, died on the spot.

During the attack on Adil, two stray bullets hit rickshaw-puller Mohammad Idris, 25, who is now receiving treatment at Dhaka Medical College Hospital.

Following the incident, Adil's associates rushed to Selim's house in Hajirbari and took him by force to Beltala Bazar, where they chopped him dead at around 5:00pm.

Shyampur police said Adil was accused of several crimes including murders and extortion in cases lodged with Demra Police Station.

They suspect Selim, son of Sabed Uddin, was also involved in crime, but his wife claims he was a jute trader.

Locals said the victims were friends, who used to peddle drugs in the area. "They were jute traders in Mirpur a couple of years ago, but later became involved in crime," said a local preferring anonymity.

Selim shifted his house to Shyampur a month ago. The two were embroiled in a dispute over phensidyle peddling, sources said.

Police sent the bodies to Mitford Hospital for autopsy.