New Delhi: The Centre on Monday night termed as "highly regrettable" the Budgam incident in Kashmir Valley in which two civilians were killed and several others injured in Army firing and said a fair inquiry will be held and action taken against those found guilty.

"The Budgam incident in the Kashmir Valley is highly regrettable. A fair inquiry will be held and action taken against those found guilty," Defence Minister Arun Jaitley tweeted.

The remarks by Jaitley came just hours after the two civilians were killed and an equal number of persons injured in Army firing when they did not stop their vehicle at check points in Budgam district of central Kashmir.

An army spokesman Col Brijesh Pandey had earlier said the deceased were Army personnel.

He said security forces had an input about militants moving from Nowgam area of Srinagar to Pulwama district on the road passing through Chattergam area of Budgam district in a white private car.

"Three motor vehicle check points were established along the route to nab the militants. The car in which these youth were travelling did not stop at two check points when they were flagged down.

"They even broke through the third barrier at Chattergam leading to the security forces opening firing on them," Col Pandey said.

He said Army has ordered a Court of Inquiry into the incident to ascertain the facts.

"We regret the unnecessary loss of lives in the incident," he added.

Earlier, Col Pandey had said four soldiers were injured in the incident and two of them were declared brought dead at hospital.