Peoples Democratic Party (PDP) chief Mehbooba Mufti was placed under house arrest on Wednesday at her residence in Srinagar, the sources said.
They said she was going to participate in a protest in Press Colony in the city. The former Jammu and Kashmir Chief Minister, earlier in the day, protested in Jammu against the alleged killing of civilians in the Hyderpora encounter.
"I am protesting because this government kills civilians in the name of militancy. Nobody knows if militants are being killed. Three civilians have been killed recently. The government refuses to hand over their dead bodies to the families despite the latter's demand," Ms Mufti had told media persons.
The demonstration was held outside the PDP office. She claimed that three civilians have been killed in the encounter that took place on Monday.
She has also demanded a judicial inquiry into the Hyderpora encounter in Jammu and Kashmir.
An encounter between security forces and terrorists had broken out in the Hyderpora area of Srinagar in Jammu and Kashmir on November 15 after input was received by police regarding the presence of terrorists in an illegal call centre in a private building in the area.
The Jammu and Kashmir Police said that two terrorists identified as Haider, a foreign Pakistani terrorist and his associate Amir Ahmad resident of Banihal (a hybrid terrorist), were killed in the encounter.
It said the owner of the building, Altaf Ahmad, as well as tenant, Mudasir Ahmad, were also called to accompany the search party. However, in the encounter with terrorists, both received critical gunshot injuries and succumbed to their injuries.
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