The dead, identified as Monsoor Alam, 25, was shot when he caught one of the robbers, who were snatching ornaments from his mother.

Monsoor's neighbour Abul Bashar, 50, who received bullet wounds, was admitted to Chittagong Medical College and Hospital (CMCH).

Police and witnesses said a gang of about 15 stormed into the house of Abdul Malek Mistri at around 2:00am. They looted 15 tolas of gold ornaments and cash worth Tk 2 lakh, keeping the inmates hostage at gun point.

Monsoor's elder brother Naser Ali said they shot Monsoor point blank, leaving him dead on the spot, as he caught one of the gang members.

Hearing the gun shots, locals rushed in and chased the robbers. The fleeing gang opened fire, injuring Abul Bashar.

Soon after the incident, the law enforcers from Chandgaon and Panchlaish police stations conducted a joint raid in Hill View Residential Area in Panchlaish and arrested seven members of the gang in a room at Taher Villa.

Police also recovered three firearms, a binocular, some of the looted goods and other materials used in the robbery from them.

The arrestees are Ramzan Ali, Wahidul Islam, Shanker, Khorshed, Sarwar, Nazrul Islam Munna, and Rashed.