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A small portion of the front side of the tunnel at Khoni nallah collapsed on Thursday night during an audit, they said, adding that a joint rescue operation was launched immediately by police and the Army.
Four people were rescued in injured condition, and several others are still trapped inside the tunnel, the officials said.
Several machines and vehicles, including bulldozers and trucks, which were parked on the front side of the tunnel, suffered damage, they said.
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Those trapped inside the tunnel belong to the company conducting the work of auditing the tunnel, they said.Several ambulances were dispatched to the location from Banihal, the officials added.