Jatt was last spotted at the funeral of a terrorist who was among the five gunned down by security forces in an encounter in Jammu and Kashmir's Shopian district in August.
Jatt alias Hanzalla was part of the Ajmal Kasab group and was raised in a madrasa in Pakistan "where he had undergone arms training" and carried out major attacks on security forces and raided banks in south Kashmir. He was also involved in attacks on security establishments and "many other civilian atrocities", police said.
Jatt is a Pakistan-based terrorist, who had escaped from police custody at a Srinagar hospital on February 6 and killed journalist Bukhari on June 14.
ANI quoted Singh saying: "Those involved in the killing of innocent people in the Kulgam, Pulwama and Shopian belt were neutralised". Two policemen were killed in a shootout at the hospital.
"Arresting Jatt alive could have helped in getting further details in the (Bukhari) case, in which investigation is still going on".
The killing of Jutt and another militant sparked off protests and clashes between stone-throwing youth and security forces at Kuthipora of Budgam, leaving eleven persons including two CRPF jawans injured, reports said. Along with his associates, Jatt had crossed over into the Valley in October 2012.More news: Black Friday 2018: The 7 best gaming deals
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State's director general of police Dilbag Singh said Jatt was one of the prime accused in the killing of Bukhari. When he was arrested in 2014, Jatt had reportedly claimed responsibility of killing paramilitary forces and policemen.
LeT, the proscribed group India blames for the 2008 attacks in Mumbai, is one of several groups that has been fighting Indian soldiers for decades, seeking independence for Kashmir or a merger with Pakistan.
Occupational troops martyred the youth during a cordon and search operation in Chattergam area of the Budgam district.
While Jatt was a Lashkar operative, his escape was reported to have been planned and executed by the Hizbul Mujahideen, on the instructions of its chief Riyaz Naikoo.
He allegedly emerged on CCTV footage, along with two other militants, escaping from the site of Bukhari's murder on a motorbike.
According to police, 13 FIRs had been filed against Jatt in Srinagar and South Kashmir this year alone. As the searches were going on, the search party was sacked upon by the hiding militants.