Two Indian Mujahideen [Images] terrorists allegedly involved in the Delhi [Images] and other recent serial blasts were on Friday killed in a fierce encounter in South Delhi that left two Delhi Police Special Cell personnel injured, one of whom is said to be in a "critical" condition.

One terrorist was nabbed at the end of an hour-long encounter in Jamia Nagar, but two others slipped away, Delhi Police Commissioner Y S Dadwal told reporters.

Police recovered an AK-47 assault rifle along with two .30 pistols and a computer from the L-18 residence in the area, Dadwal said.

One of the two killed was identified as Atif, a key operative of Indian Mujahideen who had travelled to Ahmedabad [Images] on July 24, two days before the serial blasts in that city, Dadwal said.

He went to Gujarat with 10 people on July 24 and returned on July 27 along with 12 others, including two people who had allegedly arranged for the cars found laden with explosives in Surat [Images], the police commissioner said.

Atif alias Bashir is involved in Delhi, Ahmedabad, Hyderabad and Jaipur [Images] serial blasts, he said.

Dadwal said that Atif was linked to Mohammed Usman Qureshi alias Tauqeer, the mastermind behind the serial bomb blasts in various parts of the country in the recent past.

The other militant killed in the encounter has been identified as Sajid, a member of the Indian Mujahideen, a shadow outfit of the banned SIMI [Images] and Lashkar-e-Tayiba.

Both Atif and Sajid hailed from Azamgarh in eastern Uttar Pradesh [Images], Dadwal said.

Police identified the arrested terrorist as Mohammed Saif who has been taken by the special cell sleuths for questioning.

The commissioner said that Inspector M C Sharma, a highly decorated officer of the special cell who has won gallantry awards seven times, was in a "critical condition" at the Holy Family hospital.

Sharma sustained three bullet injuries, one each in the abdomen, thigh and right hand.

The other injured Head Cnstable Balwant, who was shot in the hand, is out of danger. A steel plate has been inserted in his fractured hand, Dadwal said.