A television report said the encounter began at around 5 a.m. in the forest area of the district and is still on.
Security sources were quoted as saying that Jindal was killed in a forest in the Mahore area of the district.
They also said that some terrorists are still trapped in the region and efforts are on to flush them out or kill them.
Jindal is said to have had a role in masterminding the 26/11 terror conspiracy in Mumbai that claimed over 160 lives.
Police in Mumbai have said that they are still verifying this piece of information provided to them by the lone surviving terrorist of the Mumbai attack Ajmal Amir Kasab during his confession before a court.
Kasab has claimed that Jindal had come to see the ten terrorists off from Karachi in 'Al-Hussaini' boat.