Forces had launched a cordon-and-search operation in New Colony Kakapora area of Pulwama following information about the presence of militants there.
The successful operation is a big blow to the LeT terror outfit which recently lost its commander Junaid Mattoo in an encounter at Arwin village in Anantnag district of South Kashmir on June 17, he added.
He further said that announcements were made over the public-address systems of the mosques, asking people to come out on streets to help the "trapped terrorists" escape.
The slain militants were identified as Shariq, Majid and Shabir, all residents of Pulwama district and affiliated to LeT.
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A police official told PTI that a mob pelted stones at security forces to distract them from the operation.
This is the second firefight in past twenty-four hours between the forces and militants.
Two additional battalions - a total of 2000 men - of the Army will be sent as reinforcement to four troubled districts of Jammu and Kashmir, officials said today.
"Presence of top LeT terrorists Adil and Majid in the ongoing gunfight can not be ruled out", added the police official. Several protesters have also been killed in security forces firing during these clashes.
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