Tamil Nadu Minister T K M Chinnaya and senior officials paid their last respects to the martyred armyman.
Bereaved family members were present on the occasion.
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State Governor K Rosaiah expressed shock and grief over the death.
The Nation, especially the Indian Army, has lost a brave and young promising officer and his death is an irreparable loss, he said in a release today, condoling the death.
A wreath was placed on the body on behalf of the Governor, the Raj Bhavan release said.
Chief Minister Jayalalithaa had yesterday expressed grief over the death of Varadarajan and announced a solatium of Rs 10 lakh to the bereaved family.
Major Varadarajan was killed along with a jawan in the encounter.
Security forces had launched a search operation in Karewa Malino in Shopian, 55 km from Srinagar on April 25, following information about presence of three militants - two locals and one foreigner.
The encounter ended Saturday morning. The bodies of three militants were also recovered.
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