Two other people, including a girl, sustained bullet wounds in the incident, they said.
CRPF officials, however, denied any firing by their personnel posted at Gagaran.
"CRPF did not open fire. Our men were not even deployed on the streets," CRPF spokesman Kishore Prasad told reporters in Srinagar.
Inspector General of Police (IGP) Kashmir Abdul Gani Mir told IANS that police was investigating the incident. He said they were also probing Saturday's firing incident at Gagaran in which four people were killed.
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