The elite anti-Naxal force of Telangana police, Greyhounds, was involved in the encounter.
A division bench of acting Chief Justice Dilip Bhosale and Justice P Naveen Rao passed the order on a public interest litigation filed by the State Civil Liberties Committee, an NGO, alleging that the encounter was fake.
The bench directed that if the relatives of the slain Naxals came forward to claim the bodies, the police may record their statement and hand over the bodies. This process must be videographed, it said.
Additional Advocate General J Ramchander Rao said that two of the bodies had already been handed over to relatives.