Three soldiers were injured in the initial exchange of fire between the two sides.
Based on specific inputs about the presence of terrorists in Malwah area of Baramulla in north Kashmir, security forces launched a cordon and search operation there, police official said.
The Search operation turned into an encounter after the terrorists fired upon the forces, who retaliated.
Kantroo was involved in several killings of civilians and security personnel.
“Kantroo was also involved in the recent killing of a special police officer and his brother, a soldier and a civilian in Budgam district,” the IGP said, adding that the LeT commander’s killing is “a big success for us”.
Arms and ammunition have been recovered, the police said.