Labourers working on children's park, community centre and reading room - part of the model village facilities - were stopped and threatened by the Pakistan troops on Monday, official sources said.
They said a group of Pakistan army personnel accompanied by a civilian officer had objected to the construction work along the banks of Kishenganga river on Indian side claiming it was part of Pakistan-occupied Kashmir's territory.
However, the Pakistan army officials refused to budge and told the Indian officials and panchayat members to ask higher authorities to take up the matter with their counterparts on Pakistani side, the sources said.
The communication between the two sides took place through the use of public address system, they added.
District Development Commissioner Itrat Hussain said a team of officials has been sent to the spot but so far they have not reported back.
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