Five hardcore militants of the outfit were killed in the gunfight yesterday and two more were believed to be hiding in Sadapora village, 55 kms from here, the officials said.
Two Army personnel were injured when the holed up militants opened fire on the security search party in the village this morning after a night long lull, the officials said.
They said the ultras fired on the search party which moved in to clear the debris of the house which was damaged during the gunfight yesterday to recover the bodies of the slain militants.
Security forces returned the fire and in the ensuing firing one more militant was killed, the officials said.
Security forces cordoned off the Sadapora village during the intervening night of Monday and Tuesday following specific information about the presence of a seven-member heavily-armed group of militants in a house.
"Bodies of six militants have been recovered from the encounter site so far," Superintendent of Police, Sopore, Imtiaz Mir said.
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He said one of the slain militants has been identified as Athar Yousuf Dar alias "Naveed", a resident of Bismilllah Colony, Sopore.
The identity of the other militants is being ascertained, the officer said, adding the body of the slain militant was handed over to the next of kins for last rites.
Mir said the group had recently entered in Sopore from other areas of North Kashmir as LeT was depleting in the town.
"The operation is still going on," he added.