Jammu and Kashmir Chief Minister Omar Abdullah on Saturday ordered a magisterial probe into the alleged fake encounter in Machil sector of the state.
The J&K Police has filed a case of abduction and murder against a few security personnel for an encounter in which three people were killed on April 30.
Meanwhile, the Army has said it will fully cooperate in the investigations and assured full transparency.
The Army has also hinted at setting up a fast-track inquiry once it receives a formal report from the Jammu and Kashmir Police.
Security forces had claimed that they had killed three infiltrators and recovered five AK47 rifles, ammunition and Pakistani currency from them in the Machalli sector.
According to reports, the J&K Police found that the men killed by the security forces were actually innocent civilians, who were reported missing from a village in Baramulla District.
Their bodies were exhumed on Friday and handed over to their relatives.