Court martial proceedings have been initiated against the accused personnel, the army said.
Sources said those who will face proceedings include Col D K Pathania, Commanding Officer of 4 Rajput Regiment, Major Upinder and four of its men.
On April 30, 2010, the army had claimed that they had killed three infiltrators in the Machil sector along the Line of Control. It had later claimed that they were Pakistani terrorists. However, they were later identified as Mohamad Shafi, Shehzad Ahmed and Riyaz Ahmed, all residents of Nadihal in Baramulla district. They were allegedly lured to a border area and shot dead.
Following complaints from relatives of the victims, a territorial army jawan and two others were arrested by police but the incident led to unrest in the entire Kashmir Valley and widespread demonstrations in which 123 people were killed.
An official spokesperson of the Northern Command said the army ordered disciplinary proceedings against the accused personnel of the army units involved in the 2010 alleged Machil fake encounter case.
"A very detailed and exhaustive enquiry was conducted with the assistance of the state police and judicial department to summon witnesses, record evidence and establish culpability of the accused personnel. After detailed scrutiny of the complete incident and any wrongdoings committed by the concerned personnel, the army has ordered court martial proceedings to take the legal process to a logical conclusion highlighting the army’s resolve of ensuring justice with speed," the spokesperson said.
The Jammu and Kashmir police had in July 2010 filed a chargesheet against an army colonel, a major and seven others in the case.
The chargesheet had named Col Pathania, Maj Upinder and four others of the unit besides a territorial army jawan and two others for allegedly conspiring and kidnapping three youths from Sopore on the pretext of giving them jobs and later killing them in the higher reaches of Kupwara claiming they were terrorists. The chargesheet was filed in the court of the chief judicial magistrate in Sopore.
The state police had arrested three persons Abbas Shah -- the territorial army jawan, Basharat Lone and Abdul Hamid Bhat for alleged involvement in the case.
Image: A Kashmiri female protester holds a placard during a pprotest in Srinagar August 20, 2010
Photograph: Danish Ismail/Reuters
Music, mistrust and a maestro's love for Kashmir
Explained: Why Kashmir is burning
The day Kashmir changed forever
Why every Indian needs to visit Kashmir
Intense cold grips North; fresh snowfall in Kashmir, Himachal