Court martial proceedings have been initiated against the accused personnel, the Army said.
Sources said those who will face proceedings include Col D K Pathania, Commanding Officer (CO) of 4 Rajput Regiment, Major Upinder and four of its men.
On April 30, 2010, the Army had claimed that they had killed three infiltrators in the Machchil sector along the Line of Control. It had later claimed that they were Pakistani terrorists.
Following complaints from relatives of the victims, a Territorial Army jawan and two others were arrested by police but the incident led to unrest in the entire Kashmir Valley and widespread demonstrations in which 123 people were killed.
An official spokesperson of the Northern Command said the Army ordered disciplinary proceedings against the accused personnel of the Army units involved in the 2010 alleged Machchil fake encounter case.
"A very detailed and exhaustive enquiry was conducted with the assistance of state police and judicial department to summon witnesses, record evidence and establish culpability of the accused personnel.
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