The army has completed the Summary of Evidence against two of its soldiers involved in July's Amshipura encounter in south Kashmir's Shopian district in which three civilians were killed.
A possible court martial could take place after completion of formalities, officials said.
General Officer in Command of the strategically located XV Corps Lieutenant General B S Raju said the Summary of Evidence has been completed, but declined to give details of the outcome.
"Yes, the Summary of Evidence has been completed and the army will take the next course of action as per the law," General Raju told PTI in Srinagar.
The army had ordered a Court of Inquiry after reports appeared on social media that three youth, labelled as terrorists, had been gunned down by its personnel.
The Court of Inquiry, which completed its probe earlier in September, had found 'prima facie' evidence that troops had 'exceeded' powers under the Armed Forces Special Powers Act during the July 18 encounter in which three men were killed.
Following this, the army had initiated disciplinary proceedings.
'The process of recording the 'summary of evidence' has been completed. The same is being examined by the concerned authorities in consultation with legal advisors for proceeding further,' the defence ministry's public relations officer said in a statemen.
'The Indian Army is committed to ethical conduct of operations. Further details will be shared in a manner so as not to prejudice the proceedings under Army Law,' the statement added.
Officials in know of the development said the two army personnel may face court martial proceedings for violating the powers vested under AFSPA 1990 and not following the Do's and Don'ts of Chief of Army Staff as approved by the Supreme Court.
The officials said the accused personnel may face serious charges under the law.
They also said the role of the three civilians as well as the person who had allegedly led the army to the youths in Amshipura in Shopian needs to be thoroughly examined by the police.
The three civilians killed in Amshipura were Imtiyaz Ahmed, Abrar Ahmed and Mohammed Ibrar, hailing from Rajouri district.
Their identities were subsequently confirmed through a DNA test. The bodies were handed over to their families in Baramulla in October.
The role and antecedents of these three youth are also being investigated due to lack of clarity on their intent and actions upon coming to Shopian.
Jammu and Kashmir Lieutenant Governor Manoj Sinha had visited the families of the three youth and expressed hi condolence.
Sinha assured the families that the Union Territory government will ensure that justice is done in the case.
The lieutenant governor conveyed Prime Minister Narendra Damodardas Modi's message that the government stands with the aggrieved families, and they will be taken care of with all support from the government.