Sajjad Haider, a spokesman for Bangladesh Rifles, the official name of the paramilitary border guards, said gunfire erupted inside the agency´s Dhaka headquarters compound and that "the army has moved in to deal with the situation."
A rickshaw driver, who suffered a bullet wound outside the compound, died at state-run Dhaka Medical College Hospital, doctors said. Three bystanders and one border guard were being treated at the hospital for wounds, doctors said on condition of anonymity, citing protocol.
Intermittent gunshots rang out at the border guards´ headquarters nearly four hours after the start of violence, and smoke billowed from the compound. Army troops took positions outside the nearby shopping mall seized by the mutineers.
Prime Minister Sheikh Hasina´s newly elected government urged the mutineers to lay down their arms and return to barracks, offering to hold talks over their demands, said a statement from the Bangladesh military.
An ETV correspondent reporting live from the scene earlier said guards came out of their barracks and seized a conference hall where officers were meeting. The troops chanted slogans for more pay and better facilities, the report said. Some of the troops also stormed out of the complex and seized the nearby shopping mall, ETV said.
Army troops closed all roads in the area to traffic and urged residents to move out.
Ilias Ahmed, who lives in apartment building just outside the border guards compound, said he saw vehicles burning inside.
The fighting occurred a day after Hasina visited the headquarters and addressed the guards, urging them to become "more disciplined and remain ever ready to guard the country´s frontiers."