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The area has been cordoned off and efforts are on by the bomb disposal squad of the Army and police to neutralise the shells.
An official said a villager noticed the shells at Sangwali Morh in Ghagwal area along the Jammu-Pathankot Highway around 6.30 am and alerted the police.
Quoting preliminary investigation, the officials said it is believed that some scrap dealer dumped the mortar shells near the stream.