Security forces launched a cordon and search operation in Durbugh area of Chadoora in the early hours following information about the presence of terrorists in the area, a police official said.
He said the search operation turned into a gun battle after terrorists opened fire on security forces. As the security forces were engaged in the exchange of firing with holed-up terrorists, a large number of protesters started pelting stones at the law enforcing agencies, the official said.
He said one person was hit by a bullet in the neck and rushed to a hospital in Srinagar. He succumbed to injuries on way to the hospital. Another civilian was reported dead over an hour later. 17 others suffered injuries as security forces fired pellet guns and tear smoke shells in a bid to disperse the protesters, the official said.
The gun battle between security forces and terrorists was going on till last reports came in, the official said.