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Acting on specific information about the presence of militants in the Amshipora area of Shopian in south Kashmir, security forces launched a cordon-and-search operation there, a police official said.
He said the search operation led to an encounter after the militants fired upon the forces, drawing retaliation.
Three militants were killed in the gunfight, the official said.
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On Friday, three militants, including a self-styled top commander of Jaish-e-Mohammad (JeM), were killed in Kulgam district of Jammu and Kashmir.