The deceased is Mostofa Kamal alias Mina Kamal, 52, a former chairman of Naihati Union Parishad.
The incident took place near Bhekutimari area on Khulna-Mongla highway at Rampal thana in Bagerhat.
RAB-6 commander Rowshanul Feroz said, acting on a tip-off, they conducted a raid in the area. Sensing the presence of them, some terrorists opened fire on them. In reply, the members of elite force fired back, leaving Kamal injured. Later, he was admitted to Rampal upazila health complex where the on-duty doctor declared him dead.
A pistol, some bullets, a knife and some drugs were recovered from the spot. Kamal was accused in 25 case including murder, said Feroz.