The three terrorists of Hizbul Mujahideen had barged into Mr Sheikh's house last evening and attempted to abduct him. When the family resisted, they opened fire. Mr Sheikh died on the spot.
One of the terrorists, Showkat Ahmad, also died. The other two managed to escape, said an officer of the local police.
Today, after the funeral of the terrorist, a group of people went to Mr Sheikh's house in Shopian's Chak Houmona. The frenzied attack came when Mr Sheikh's family had just reached home after his burial. Timely intervention by security forces saved the lives of the six members, but the two-storied house was completely gutted.
"A mob, on the instigation of terrorists attacked the house of former sarpanch who was killed last night, The police and the security forces have rushed to the spot," said state police chief SP Vaid.
Police sources say the family has now been moved to a secret location for their safety.
Village heads and local politicians have often been targeted by terrorists in Kashmir Valley. Between 2011 and 2015, a spate of such killings had taken place. At least 10 sarpanches were among the victims.
Three weeks ago, terrorists had attacked the family of an off-duty BSF constable, Mohammad Ramzan Parray, at Hajin in Bandipore. The family had offered resistance when the men had attacked Mr Parray.