The man who brutally murdered two children at their home in Budaun knew the family and had gone there seeking money for payment to a hospital where his pregnant wife is admitted, according to the FIR lodged on the matter.

Hours after the murder, the accused Sajid (22) was gunned down in an encounter with the police, IG Bareilly range RK Singh told PTI on Wednesday.

A man who had recently opened a barber shop in the locality entered the house and attacked three brothers -- Ayush,12, Ahaan alias Honey, 8, and Yuvraj, 10, with a knife. Ayush and Ahaan died in the attack, while Yuvraj was rushed to a hospital with grievous wounds.

As per the FIR lodged after a complaint by the deceased's father Vinod Kumar, accused Sajid and his brother Javed reached the house at around 7 pm on Tuesday.

"Sajid told my wife Sangeeta that he needed Rs 5,000 which is required for the delivery of his wife. When my wife went inside to get the money, Sajid went to the roof of the house. Moments later, Javed also reached the roof and they called my two sons Ayush, 12, Ahaan alias Honey, 8 on the roof," reads the FIR.

The accused attacked the minors with a sharp knife. The mother of the two boys saw that the clothes of the accused were drenched with blood when they came downstairs.

"When my wife came out with the money, she saw Sajid and Javed coming downstairs with a knife. Seeing my wife, they said 'I have done my work today' and tried to escape from the spot," reads the FIR.

The accused also attacked the third son Yuvraj who had gone upstairs to fetch water. Yuvraj is admitted in hospital and his condition is said to be stable.

The father of the deceased who is a private contractor was out of the district at the time of the incident. Apart from his wife Sangeeta, his mother was present at the house.

Police have not clarified about the whereabouts of Javed. Police have also not confirmed the motive behind the incident.

Police have booked both Javed and Sajid for murder (under IPC Section 302 IPC) in the FIR.

Considering that the case pertains to people from different communities, a heavy police force has been deployed in the area.