Two Hizbul Mujahideen (HM) militants and their "active associate" were Friday killed in an encounter with security forces in Jammu and Kashmir's Shopian district, police said.
A police spokesperson said the third person killed in the encounter was missing since Thursday afternoon and "was part of the militant group".
Earlier, a police official said he was an "active associate" of the group.
"On credible input, a cordon and search operation was launched by police and security forces in Sugan area of south Kashmir. Pertinently, the encounter site was located in orchards with no habitation nearby," the police spokesperson said.
He said during the search operation, the hiding militants fired at the search party of the forces.
The fire was retaliated leading to an encounter, he said.
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In the ensuing encounter, two listed militants along with the other one who was part of the group were killed, he said.
The bodies were retrieved from the site of the encounter and handed over to the legal heirs, he added.
The two militants were identified as Abid Manzoor Magray alias Sajju Tiger, a resident Nowpora Payeeen Pulwama, Bilal Ahmad Bhat, from Urmulla Lassipora Pulwama.
The other person who was part of the group was identified as Jasim Rashid Shah, a resident of Malnar, Shopian.
"The group was affiliated with proscribed terror outfit HM. Magray and Bhat were wanted by law for their complicity in a series of terror crimes, including attacks on security establishments and civilian atrocities. Several terror crime cases were registered against them," the spokesperson said.
According to police records, he said, Magray had a history of terror crime records since 2016 and was part of groups involved in planning and executing a series of terror attacks in the area and many other civilian atrocities.
Several terror crime cases, including an attack at Litter, weapon snatching at Gudbug Guard, firing on police post Lassipora, firing on patrolling party at Alaipora Lassipora, vehicle theft, kidnapping of a girl and several other criminal cases were registered against him, he said.
Bhat was also involved in several terror attacks on security establishments in the area and many terror crime cases were also registered against him, the spokesperson said.
"Shah, as per the records and inputs available with police coupled with the family version, was missing since yesterday (Thursday) afternoon and was part of this group," he added.
Incriminating material, including arms and ammunition, were recovered from the site of the encounter, the spokesperson said, adding that all the material have been taken in the case records for the purpose of investigation and to probe their complicity in other terror crimes.