On Friday morning, while the encounter was underway, hundreds of residents of Kharpora village, two kilometres from Arwani village, clashed with the security forces.
Two people reportedly died after police opened fire on protesters attempting to disrupt an encounter going on in the area.
Earlier Friday, government forces cordoned off Arwani village in the south on a tip that at least two Kashmiri rebels were hiding there, said inspector-general of police Muneer Ahmed Khan. They intercepted the civilian protesters who retaliated by pelting stones on the forces personnel.
Mattoo, according to intelligence agencies, had on Thursday killed police constable Sajjad Ahmad at Kulgam, who was vacationing at home. Two civilians were also injured in the attack.
The JKLF-R General Secretary, Wajahat Bashir Qureshi in a statement in Srinagar expressed deep grief over the killing of a Bandipora youth, Nazir Ahmad during forces' firing.
Senior police officer S.P. Pani said militants sprayed gunfire at the police vehicle in the southern Achabal area.
Mattoo had joined the Lashkar at the age of 18. He was put in the list of 12 most wanted militants in the Valley right now by the Army.
The man was hit by a bullet near the gunfight site.
Separate clashes in Indian-administered Kashmir killed 10 people - five police officers, a soldier, two civilians and two suspected rebels - authorities said on Friday, as violence in the troubled region continues to spike.
"The injured policemen were hospitalised".
13 jawans were injured and four service rifles were looted when terrorists carried out six attacks in the span of four hours in various districts of Kashmir on Tuesday.
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