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The IED was found planted on the roadside by a police party during routine patrolling at Nandwal chowk on Khour-Pallanwala road, a police spokesman said.
He said the policemen noticed a suspicious object on the roadside at around 10.55 am and sounded an alert.
Bomb disposal squads of police and the Army along with reinforcements rushed to the scene and isolated the area before successfully diffusing the explosive substance, the spokesman said.
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A police officer said a case has been registered and a hunt has been launched to nab the suspected terrorists who planted the IED.