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The security forces launched a cordon and search operation in the Hanjan area Saturday morning after receiving specific information about the presence of militants there, an Army official said.
The search operation turned into an encounter after the ultras opened fire at the search party, who retaliated.
Four militants were killed in the gunfight. Weapons and other warlike stores were found at the encounter site, the official said.
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The search and sanitisation operation is underway.