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 Jammu and Kashmir government on Thursday ordered a magisterial probe into the killing of three persons in army firing at Qazigund
The bodies of the three militants were recovered from the debris of the house at Arwani in Bijbehara area on Friday morning after security forces blew up the building using explosives, a police official said.
Militants on Tuesday night gunned down Ghulam Hassan Laway, a Communist Party of India (Marxist) activist, inside his house at Chowalgam in Anantnag district, official sources said.
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.
Wani laid down his life during an anti-terror operation at Shopian in Kashmir in November last year.
The MEPs said they stand by India in its fight against terrorism.
Even as India battles the COVID-19 threat on a war footing, it cannot lose sight of the threat building up in Kashmir, cautions Lieutenant General Syed Ata Hasnain (retd).
The necessary formalities were being completed in Jammu as well as in the national capital before the probe agency, which has been credited with breaking the nexus between stone-pelters and separatists in Jammu and Kashmir, takes over the case, officials said.
Here's a recap of events that occurred in India in the past 24 hours.
Militants snatched an automatic rifle along with a magazine from a cop and decamped with it in south Kashmir Pulwama town on Tuesday afternoon.
Curfew remained in force for the second day today in major towns of South Kashmir after five persons were killed in firing by security forces in Shopian.
A government middle school in Shopian's Padarpora was set ablaze by unidentified people and on Sunday. The government high school in Pulwama was razed to the ground in a similar manner.
A total of 146 militancy-related incidents took place between January 15, 2015 to January 15, 2016, leaving 169 people -- 108 militants, 39 security personnel and 22 civilians -- dead. A total of 181 incidents of border firing were reported during the same period in the state which left 22 persons including eight security personnel dead and 75 others, including 13 security men injured
A police official said the curbs have been imposed to maintain law and order in view of the separatists call for a march to the three districts of Baramulla, Pulwama and Srinagar.
The target was a CRPF patrol party. The incident occurred in Anantnag district.
The cash transactions have been stopped at the branches belonging to the Jammu and Kashmir Bank and Ellaquai Dehati Bank.
The operations have been launched in six villages falling under Zainapora area in Shopian after security forces received information about movement of militants there
'Fighting terrorism and doing away with the safe shelters, sanctuaries, and safe havens will be an important part of our cooperation.'
The DGP said Jatt's killing, along with one of his associates, was a big success for the security forces.
No area in Kashmir was under curfew on Tuesday, but restrictions on the assembly of people are in place in many parts of the Valley as a precautionary measure, a police official said in Srinagar.
Normal life remained crippled due to curfew and the shutdown call by separatists groups.
A 25-year-old youngster was killed and eight others wounded when security forces opened fire on protestors in south Kashmir Gagran village on Wednesday afternoon prompting the authorities to reimpose curfew in Shopian town and adjacent areas.
Curfew was on Sunday lifted from all parts of Kashmir but normal life in the Valley remained affected due to the strike call given by hardline Hurriyat Conference to protest against the firing incident in Ramban district that left four persons dead.
'Respect the pledges you have made to the people of Kashmir.' 'Jammu and Kashmir is not like any other state of the country.'
Official sources said the first one was the truck driver who drove them to Samroli in Udhampur from Kulgam and other one was a bakery owner at Pulwama.
The security forces have maintained a tight cordon around the terrorists to prevent them from escaping.
In yet another audacious move, the banned Hizbul Mujahideen has uploaded a video of its militants training in army fatigues with assault rifles and cracking jokes on a social networking site, seen as a "psychological warfare" against the security forces.
'The army is using its might to teach them a lesson'
Restrictions have been imposed in five police station areas of Srinagar, a police official said.
Zahid Rasool Bhat, 19, a truck assistant had received 74 per cent burn injuries with another person on October 9 when a Kashmir-bound truck was attacked by a mob protesting against the beef party hosted by an independent MLA in the summer capital of Srinagar.
Normal life has been paralysed due to curfew-like restrictions and separatists-sponsored strike since Saturday.
Paulomi Tripathi, a junior most Indian diplomat at the Permanent Mission of India to the United Nations showed a picture of Lieutenant Umar Fayyaz, who was killed by terrorists.
Mir's son, Zahoor Ahmed Mir, said his father's security was withdrawn two months ago and all efforts to get it back had fallen on deaf ears.
The number is an all time high for the state with south Kashmir emerging as one of the main hubs, providing cadres to terrorist groups.
The highway was closed on Saturday due to heavy snowfall and landslides.
The National Investigation Agency on Wednesday took over the case of Tuesday's Udhampur terror strike.