Police, while reopening the case, have informed Interpol that Salahuddin is in Pakistan and sought the help of the world police organisation to extradite him, highly placed sources in the state government said.
Hizbul Mujahideen chief Syed Salahuddin, who was reportedly detained earlier while demonstrating against President Pervez Musharraf's Kashmir policy, has been on a hunger strike for the past five days.
More than 200 persons were injured in clashes between protestors and security forces in the Valley on Sunday.
Camps continue to be run despite the government's denial.
Curfew continued in parts of Srinagar on Saturday in view of the separatists' call for occupying Lal Chowk and Airport Road here while curfew-like restrictions remained in force in rest of Kashmir even as normal life remained paralysed for the 57th day.
'The reality is that India is not ready to accept Kashmir as a core issue,' says Hizbul Mujahideen commander Syed Salahuddin.
With this death, the toll in the ongoing unrest in Kashmir has gone up to 69.
At least 25 persons were injured in clashes between protestors and security forces in Kashmir on Saturday.
Lone and two others were identified by police as the masterminds behind the grenade attack.
During the interrogation, the militants confessed their involvement in the crime, he added.
The induction of the youth of J&K in the army comes at a time when the state has been making headlines for incidents of stone-pelting by some youngsters in the valley.
An army official said they were collecting details about the incident and will soon issue a statement.
A massive operation has been launched to track down the attackers, who fled the spot.
EAM Sushma Swaraj said that terror and talks cannot go together.
Restrictions on assembly of four or more people were in force in rest of the Valley as a precautionary measure to maintain law and order.
Sayyed Liyaqat Shah, arrested in 2013 by Delhi police on charges of being a terrorist of banned outfit Hizbul Mujahideen and planning attacks in New Delhi, has sought his discharge before a Delhi court, saying no evidence has been found against him by the NIA.
Jammu and Kashmir police on Saturday claimed to have unearthed a module of Hizbul Mujahideen involved in the manufacture of car bombs, with the arrest of four militants belonging to the outfit.
The incoming facility on prepaid connections has also been restored, but the outgoing calls are barred.
Mobile services were partially restored in the Valley which has been rocked by violence since July 8.
During interrorgation, it was revealed that the 4 terrorists owed allegiance to the Hizbul Mujahideen.
Sharif said, "Today we are observing Black Day to express solidarity with Kashmiris and are giving a strong message to the world that Pakistanis are with them (Kashmiris) for their struggle to get their rights."
J&K: 2 ultras, jawan killed in encounter
The latest developments from the violence-hit valley.
Samiullah Sheikh (21) and Ali Mohammed Sheikh (32) were carrying 2 kg of IEDs, Joint Commissioner of Police Karnal Singh said.
India on Friday asked Pakistan to deport Dawood as well as Hizbul Mujahideen chief Syed Salahuddin.
EAM also hit out at Pakistan for continuing to glorify terrorists belonging to proscribed terrorist organisations.
The Mumbai-born gangster's nationality is listed as "Indian", with a recorded Indian passport which was subsequently revoked by the government of India and then goes on to list a string of Indian and Pakistani passports acquired by him and misused.
Restrictions on the movement of the people in parts of Srinagar, some areas in north Kashmir and four districts of south Kashmir, which were imposed on Saturday morning, continued to remain in force on Thursday.
Police suspect that Khurshid was an important functionary in the Lashkar-e-Tayiba set up.
He had allegedly given a cheque for Rs 9.5 lakh to the Islamic Front activists and it was recovered from them during their arrest, they said.
The ultra showered bullets on Reyaz Ahmad Shosha, who was under treatment at the hospital after sustaining injuries in a militant attack at Sopore on May 19.
'The last time it tried to push India towards a solution was at Kargil in 1999, when Pakistan's survival itself came into question and an elected prime minister had to beg the US to stop India from inflicting another defeat on the country.'
In a significant move, Kashmiri separatist leaders on Sunday decided to convene a meeting of all stakeholders on Tuesday to decide the future course of the nearly four-month-long shutdown in the Valley.
Security forces were on Sunday deployed in strength in parts of Srinagar in the wake of fresh violence following death of a teenager, even as normal life remained affected elsewhere in the Valley for the 121st consecutive day due to separatist-sponsored strike.
At least 12 people were injured on Saturday in fresh clashes between protesters and security forces, following death of a 16-year-old boy due to alleged poisoning in Eidgah area of the city.
Two kg of RDX, a timer device, a detonator and a pistol have been seized from Meharajuddin.
5 ultras killed, 4 arrested, 60 kg explosives seized in J&K