The lockdown in the held valley crippled life on the first day of the holy month after widespread violence on Saturday over the killing of Sabzar Ahmad Bhat in a gunfight with Indian forces.
Occupying forces in riot gear erected barricades in the main city, Srinagar, and other towns in southern held Kashmir to prevent people from reaching the commander's funeral.
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But thousands of mourners defied the security curbs Sunday to attended the burial of the rebel commander in his hometown amid anti-India and pro-Independence slogans.
Srinagar's central mosque remained shut and devotees were barred from offering prayers on the first day of the Ramazan fasting period.
"Restrictions have been put in place in some areas to maintain law and order," police chief Shesh Pal Vaid told AFP.
Bhat, head of the Hizbul Mujahideen militant group, and a 16-year-old associate were killed in a gunfight near his native village in Tral area.
Indian security agencies want social media ban to continue in held Kashmir
A protester was shot dead by troops during clashes as hundreds of villagers tried to break the security cordon to help the militants to escape. Clashes spread to other districts, leaving dozens injured.
Last year nearly 100 protesters were killed after militant chief Burhan Wani was killed, triggering months of anti-India protests. Bhat took over as the leader.
"Forces have blocked all roads to restrict people to their areas," Bashir Ahmad, a resident of Pulwama told AFP, a neighbouring district of Tral.
Authorities snapped internet mobile services and calling services Saturday just hours after a month-long ban on 22 social media sites like Facebook and Twitter ended.
Anti-India sentiment runs deep in the Kashmir valley, where most people favour independence from India.
An armed rebellion broke-out in 1989 that later weakened. But over the last year there has been an upsurge in protests against Indian rule.
Several armed groups are fighting Indian forces. Tens of thousands of people, mostly civilians, have been killed in the nearly three decade-old conflict.
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