"First time they owned a Pak terrorist, that he is the nephew of Masood Azhar".
"We will make a request and it is for them to decide whether to claim the body or not", he said.
Besides the three militants, an army trooper of 44 Rashtriya Rifles (RR) was also killed in the gun battle.
Three weapons, including one Kalashnikov, one M16 rifle and one pistol, besides ammunition were recovered from the encounter site, said a police spokesman.
According to a report in The Indian Express, Abu Musaib was Lashkar's divisional commander when he was killed in an encounter in Hajin in January this year.
The encounter broke out in the district's Kandi Aglar village on Monday.
The JeM terrorist has been identified as Talha Rasheed, who was also acting as a local commander of the Pakistan-based terrorist outfit in Kashmir, ANI reported.
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"We have reason to believe that this weapon was given by Pakistan army to Jaish militants".
"While the cordon was being laid, the militants opened fire in which one army jawan and a civilian got injured", the spokesperson said. "This clearly shows the complicity between Jaish and Pakistan and its nefarious designs in Kashmir", he said.
Kashmir IG Khan said police would launch a thorough investigation to ascertain how such a weapon reached the hands of militants. He said, the matter will be taken up through proper channels.
Raju said this was not the only M4 rifle functional in the region, and that there could be 5-10 such weapons brought in by infiltrating militants.
A photo of a militant flaunting an M4 rifle had gone viral in Kashmiri social media circles last week.
He said there are about 16-20 more JeM militants in the Valley.