The police identified the deceased as Murthuza Sheik (26) and the arrested man as Naim Akthar.
The duo was hiding in the forest area near the lake into which they jumped after they snatched a 7-sovereign chain from a woman waiting to board a bus near the toll plaza near Sriperumbudur on Sunday.
DIG Sathyapriya, while interacting with media persons along with north zone IG Santhosh Kumar, said Naim Akthar was captured from the hideout around 7 am on Monday.
At around 1 pm, when a team led by an inspector was checking the area, Murthuza attacked them with a knife. Head constable Mohandas was injured in the attack and then the inspector opened fire at the suspect in self-defence, sources said.
Over three hundred police personnel had surrounded the lake and forest area since Sunday afternoon and three drones were in use to survey to location.
The body of the deceased was shifted to Sriperumbudur government hospital. The police recovered a country-made gun, bullets, knives, iron rods and ID cards from the suspects. They were guest workers in the industrial area of Sriperumbudur, police said.
A senior official noted that the police is likely to carry out stringent background checks for the migrant workers settled in the industrial belt in the coming days.