Among the terrorists, two have been identified as Eesa Fazili of Soura in Srinagar and Syed Owais of Kokernag in south Kashmir. The identity of the third terrorist is being ascertained, police said.
According to the police, one of the terrorists was involved in a recent attack on a police post in Soura on the outskirts of Srinagar in which a constable was killed.
The police had launched a search operation based on information about the presence of terrorists in Anantnag's Hakoora area. We didn't give them enough time to escape or breach the cordon, the police statement said.
"While the search was on, the hiding militants fired upon the party ensuing an encounter during which three militants were killed," it added.
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The police have recovered AK 47 rifles, pistols and hand grenades and added that no collateral damage was reported.