The encounter began on Sunday when terrorists fired at a police party killing one cop.
After three days, Army and Police today declared that an encounter in Mini Secretariat in Poonch was over with the killing of four terrorists.
Personnel of Army and Police stormed the under-construction complex this evening and eliminated the last of the four terrorists, a police officer said.
"The encounter has ended," said Inspector General of Police (IGP) Jammu Zone Danish Rana.
The encounter began at around 7.30 am on Sunday when the terrorists fired at a police party killing one cop. The terrorists then took shelter in a house, where an elderly couple lived, and the under-construction Mini Secretariat. Security forces had safely evacuated the couple.
One terrorist was killed on Sunday, two were killed yesterday and the remaining one was eliminated today, a police officer said.
Earlier, the police had said that three terrorists had been killed on Sunday and one yesterday.
DGP Rajendera Kumar had said, "There might be a group of 4 to 6 involved in this incident.. We have recovered bodies of two terrorists. Two more terrorists have been killed. We feel one or two terrorists are still alive."
Explaining the confusion, DIG Johny Williams said there was a perception that three terrorists had been killed on Sunday. "But one terrorist had survived and was firing. He was gunned down today," he said.
Asked whether the killed terrorists were Pakistanis, SSP JS Johar said it was a matter of investigation.
He said four AK rifles and a large quantity of ammunition was recovered from them.
The terrorists had taken position inside the building which has two floors and several rooms and the terrorists were taking benefit of it by firing from different areas, an army officer said.
He said mortars had to be used to eliminate the holed up terrorists.
Two security personnel were injured last evening when they launched an assault on the building to eliminate the terrorists.
The DGP had said terrorists had come with full preparation to disturb peace in the border district as there is calm and communal harmony in the area.
"terrorists infiltrating a day before Eid is clearly pointing towards the fact they had come here to disturb peace on Eid," Mr Kumar said.