Police sources added that a joint team of police, army and CRPF on specific inputs about the presence of militants in the area launched a cordon and search operation.
They said that the hiding terrorists fired upon the team which was retaliated and the gunfight triggered.
"Two to three terrorists are suspected to be trapped in the encounter," sources added.
Additional Director General of Police Jammu Zone, Mukesh Singh confirmed about the encounter in the Kandi belt. (UNI)