The gunbattle took place in Baji Maal area of Kalakote tehsil of Rajouri when a cordon and search operation was launched.
While five Lashkar-e-Toiba (LeT) terrorists were killed following an overnight encounter with the security forces in Kulgam district in the valley, one ultra was neutralised in Rajouri.
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This was the second terror attack in the Kashmir in less than 24 hours as militants shot at a police inspector Masroor Ahmad Wani at Eidgah ground.
The most wanted among them, Shahnawaz Alam, completed BTech in Mining Engineering in 2016. After graduating, Shahnawaz came to Delhi in November 2016 and started preparing for SSC examination.
The accused, a highly-qualified Mining Engineer with an elaborate knowledge of explosives and blasting had also analyzed the map of West Rajasthan to find out the IED testing point.
The most wanted was 31-year-old suspected terrorist Shahnawaz Alam. His father, a govt school teacher was hardly aware that his son was getting radicalised along the path.
All three alleged terrorists were produced before a Special UAPA Court in Delhi which sent them to a 7-day police custody remand.
The Major's mortal remains reached his Panipat home in an Army vehicle. Scores of people turned up on Friday at the residence of Dhonchak.
The official said how these absconder terrorists managed to escape the law and live a normal life without being traced for so long will also be investigated by the SIA.
The charges filed against the accused by NIA include IPC offences like conspiracy and promoting enmity between groups, as well as sections of the Unlawful Activities Prevention Act.
The killings come a day after security forces foiled a major infiltration bid along the Line of Control in the Krishna Ghati Sector of Poonch on the intervening night of July 16 and 17.
Some more arrests are likely as the investigation in the case is in full swing, police said in a statement.
"Four unidentified armed individuals attacked and entered police station Number 16 of Zahedan", according to state broadcaster IRIB, quoting the province's deputy head of security Alireza Marhamati.