Protests erupted in Nawab Bazar area of downtown Srinagar after the body of Parvaiz Ahmad Teli, a resident of Qalamdan Pora locality of the city, was found in Mumbai, they said.
Teli had gone missing in Mumbai since July 6.
As the news of his death spread today, youths came out on roads and started shouting pro-freedom slogans and pelted stones on vehicles and the nearby CRPF bunker, the sources said, adding a complete shutdown was observed in Nawab Bazar and adjoining areas.
Hardline Hurriyat Conference led by Syed Ali Geelani expressed shock and anger over Teli's death alleging that it was handiwork of intelligence agencies or communal elements.
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"In 2013, this is the third such incident when a Kashmiri youth has died mysteriously in any state of India," Geelani said in a statement.
"The deceased youth sported a beard and was a devout Muslim. There is a serious apprehension that he was murdered by intelligence agencies or communal goons," he said.
Demanding an impartial probe into the death of Teli, Geelani said his family had informed the police in time about the disappearance of the youth, but police failed to act.