Lt. Fayaz, 22, was abducted and murdered by suspected Hizbul militants on Tuesday and found dead the next morning in an orchard in Shopian district
Senior serving and retired army officers participating in the event, said the country had lost a role model.
Among those present on the occasion were Delhi Law Minister and Aam Aadmi Party leader Somnath Bharti and Lt.Gen. Satish Dua, Chief of Integrated Defence Staff to the chairman Chiefs of Staff Committee.
Lt. Fayaz hailed from Kulgam district and was an infantry officer posted in the Akhnoor area of Jammu District.
He was commissioned in the Indian Army in December last year.
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