The inquiry, ordered on Monday, is to be completed within 15 days. Sub-Divisional Magistrate (SDM), Assar, Ashok Katoch has been appointed as the inquiry officer.
Meanwhile, the police have already constituted a Special Investigation Team (SIT) to examine the incident following allegations by family members and local residents that the deceased was killed in cold blood.
High-speed internet services remained suspended across the district on Monday, four days after the incident.
The incident took place late on Thursday evening in the Jai area of Bhaderwah, where the deceased, identified as Arif Hussain of Cheeka village, was intercepted at a checkpoint set up by the Special Operations Group (SOG).
According to police, Hussain and his associates allegedly attempted to snatch the service weapon of an SOG personnel, and during the ensuing scuffle, he sustained bullet injuries. Two SOG personnel were also injured in the incident.
An FIR has been registered against unidentified persons under relevant provisions of the Bharatiya Nyaya Sanhita (BNS). The deceased's family members and local residents have demanded a fair and impartial investigation into the role of the police personnel involved in the incident.