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The vehicle, carrying students from the Poonch-based institute, fell into the gorge near Peer Ki Gali on the Mughal road connecting Bafliaz in Poonch to Shopian, a police official said.
He said 11 students, nine of them female, died in the accident while seven others were injured.
The injured have been evacuated from the scene of the accident to Shopian hospital, police said.