The death toll in the Hyderpora encounter here rose to four after a doctor injured in the firing succumbed to injuries early Tuesday, police officials said.
Mudasir Gul, believed to be a dental surgeon, was injured in the firing by terrorists on Monday.
Police has said two terrorists and a terror associate were killed in the encounter at Hyderpora Bypass here last evening.
One of the slain was Mohammad Altaf Bhat, a resident of Old Barzulla locality. Bhat owned a hardware store and a cement dealership near the scene of encounter.
Inspector General of Police, Kashmir zone, Vijay Kumar said the civilian was injured in the firing by militants.
"The house owner who was injured in terrorist fire, succumbed to his injuries. #Terrorists have been hiding on top floor of his building. As per source and digital evidence, he has been working as #terror associate. Search is still going on," Kumar tweeted.
However, the family claimed that Bhat had no links to militancy.
The PDP has demanded investigation into the matter.
"These allegations are grave and merit speedy investigation. Least @JmuKmrPolice could do is handover the dead body to the family for a decent burial. Are even dead ones a threat to peace now?" the party tweeted.
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