Two suspected militants were killed in J-K’s Bandipora town during a joint operation by the Indian Army and police.
Sources said that both the militants were of foreign origin who have not been identified yet.
During the safety checks following the encounter, security forces seized a huge cache of arms along with newly-released high-denomination currency notes of Rs 2,000.
Officials said two AK-47 assault rifles, 10 magazines, eight grenades, one thrower grenade, a mobile phone, a wireless set and about 500 live cartridges were and cash to the tunes of Rs 15,000 were recovered from the dead militants.
The encounter broke out after security forces launched a search operation to track down hiding militants in the area.
Sources said militants opened fire on noticing the security forces who retaliated, triggering a gunbattle.
A suspected Pakistani intruder was also gunned down by the BSF troopers in Jammu’s RS Pura sector while he was trying to sneak into the Indian territory.
(With inputs from agencies)