Simultaneously, militants in another part of the state laid an ambush and killed six policemen, including a Station House Officer (SHO) of the Achabal police station.
"The bodies of the three militants who were killed in an encounter with police and security forces in Arwani village were recovered", a police spokesman said.
Earlier, 10 terrorists turned up at the funeral of Nasir Wani, another of the three militants who were killed. Such was the rush of the mourners that eight rounds of funeral prayers were held for Mattoo. He had a meteoric rise within the Lashkar group and was appointed commander for South Kashmir after he killed two policemen in broad daylight at Anantnag bus stand in June a year ago.
The government forces have not suffered any damage fighting the holed up gunmen in the village, police said.
Thousands of people also participated in the funeral prayers of slain Lashkar-e-Toiba militant Adil Mushtaq Mir at his ancestral village in Frestbal area of Pampore. Militants also paid gun salute to Adil.
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In a written response, a council spokesman said: "We plan to house residents of Grenfell Tower as locally as we can". Cundy said it could take a number of weeks to complete the search of the tower.
Bodies of three LeT terrorists were retrieved from the debris of three residential houses, which were destroyed during a prolonged gunfight at Arwani village.
J&K DGP S P Vaid termed Junadi's killing as a major achievement for forces and a jolt for Lashkar. During the operation, militants present in the area fired upon the search parties with automatic weapons. The incident took place when Feroz Ahmed, a 2010 batch sub-inspector, was on his way to Achabal police station after completing his duty in Anantnag.
Two civilians were killed in security forces firing on protestors near encounter site at Arwani yesterday while another civilian was killed in SSB men's firing after minor stone pelting at Rangreth area in outskirts of Srinagar on Thursday evening.
A gunshot was heard near a CRPF camp on Saturday morning, triggering panic in the area, a police official said.
Separatists have called for a protest shutdown on Saturday against the killing of the two LeT militants.