Three militants were killed and a jawan injured in the Dera Nanglisahab forest belt in Poonch district of Jammu and Kashmir, official sources said on Monday.
On receiving specific information about the presence of a group of foreign mercenaries, troops cordoned off the area early on Monday to track them down, the sources said.
During the course of a search, militants hurled grenades and opened fire on the security personnel.
Three rifles, seven magazines, nine improvised explosive devices (IEDs), three hand grenades, one radio set, Rs 9,000 in Indian currency and Rs 1,000 in Pakistani currency was recovered from the spot.
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