An encounter broke out at village Begum Bagh in Kakapora area when militants opened fire on a police party which had gone there following specific information about presence of some militants there, a police officer said.
"On noticing the police party, the hiding ultras opened fire, resulting in an exchange of fire between the two sides," the officer said.
He said no casuality was reported in the shootout.
Reinforcements have been rushed to the village and a search operation was launched to nab the militants, he said adding further details are awaited.
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