The doctors in the Valley said there was no need to panic and dismissed the rumours.
The incident, which has sent jitters in the police machinery, took place in Bijbehara, 50 kilometres south of Srinagar, when constable Shakoor Ahmed failed to report for duty for two days.
J&K Governor N N Vohra on Friday ordered a security audit of all vital establishments and installations in Jammu and Kashmir by a multi-disciplinary team of security agencies.
Police said Sajjad was active in the Valley for a long time.
Gandhi's flying into Srinagar to meet Mehbooba assumes significance as there are reports that the PDP and the BJP are bargaining afresh over the formation of a new government.
Arrangements are being made at Bejibehara, the leader's hometown, for his last rites.
Mehbooba Mufti, his eldest child, will likely succeed him.
A moderate intensity earthquake rocked Kashmir valley on Saturday afternoon, triggering panic among the residents.
Two militants believed to be from the Lashkar-e-Tayiba were killed in an overnight gunfight in south Kashmir's Pulwama district.
No group has yet claimed responsibility for the attack.
Tourist hot spots like Gulmarg and Pahalgam woke up on Friday morning under a thick blanket of snow.
One soldier was killed and another wounded in the encounter. The injured trooper was evacuated to hospital for treatment.
Four militants, including three of Hizbul Mujahideen, were on Monday killed in two gunfights during search operations in the Kashmir valley, officials said.
Lieutenant Colonel SK Natt was evacuated to a hospital for treatment.
The militants hurled a hand grenade at the CRPF troopers, who were part of a road opening party, in Pampore town on the strategic Jammu-Srinagar national highway.
A police constable was also injured in an encounter that is still going on.
The blast at the heavily-guarded CRPF camp at Nowpora came even as authorities mounted a security bandobast across the state, especially in Srinagar where the prime minister is scheduled to address a public rally -- his second in Kashmir.
Chief Minister Mufti Mohammad Sayeed on Sunday said Prime Minister Narendra Modi's upcoming visit here will be a "turning point" in the history of Jammu and Kashmir and the people of the state have great expectations from it.
Curfew-like-restrictions were imposed in the old city of Srinagar and some uptown areas to foil protests and a sit-in at the historic Jamia mosque after the Friday prayers.
The heavily overcrowded matador van was on its way from Ghordi to Ramnagar with mostly college students and government employees, when it fell into a deep gorge near Dalsar area of the Ramnagar Tehsil.
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