Searches are on to trace the terrorist, who was injured in the encounter.
The gunfight started on Saturday evening after a joint team of police and security forces received an input about the presence of terrorists in the area.
As per a report, Rundu, a habitual offender was on the radar of police for his involvement in several criminal cases in the region.
The firefight started after a joint team of police and security forces got an input about the presence of terrorists in that area.
The operation being carried out by the Anti-Gangster Task Force is going on at Bhakna village close to the Attari border, where gangsters Manpreet Singh, alias Mannu, and Jagroop Singh, alias Rupa, both the key accused in Moosewala's killing, were holed up.
In self defence, the security forces returned fire.
Shah and his Kashmiri accomplice Dar were arrested from Tuksan Dhok after they were tactifully disarmed by local residents.
Police sources said the two, moving suspiciously along the LoC in Keran sector of Kupwara, were noticed by the alert army troops and challenged.
As per initial reports, the criminal has sustained injury in the encounter and has been admitted to Rourkela Government Hospital (RGH).
The police added that during the initial exchange of fire, one terrorist was killed and the arrested terrorist leading search party also got trapped.
There have been a series of encounters between the terrorists and security forces in Kashmir over the last few months in which many terrorists and their commanders have been eliminated.
Inspector General of Police, Kashmir zone, Vijay Kumar said one of the slain militants was identified as Jan Mohammad Lone, who was allegedly involved in the killing of a bank manager in Kulgam district recently.
The encounter was reported from Palpora Sangam area of the district.
Two terrorists of proscribed terror outfit LeT including one Pakistani terrorist namely Tufail killed.
As per the documents recovered from the killed Pakistani terrorist, he has been identified as Hanzalla of Lahore, Pakistan.
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