His death led to months of protests and security lockdown during which at least 90 people were killed and thousands injured, while hundreds among them were blinded and maimed in the firing of shotgun pellets by government forces. One of Bhat's fighters was also killed in the gun battle, which erupted late on Friday after government forces cordoned off a village following an intelligence tip-off.
Aziz accused India of making attempts to discredit the Kashmiri indigenous movement.
The almost 16-hour gunfight ended early Saturday when Bhat and his associate were killed.
Violent protests had broken out in Kashmir previous year in July after Burhan Wani was killed, leaving more than 100 people dead and over 12,000 injured. Wani's popularity grew after he used social media to attract new recruits for his militant outfit.More news: More arrests in Manchester attack; UK remains on high alert
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Hizbul Mujahideen terrorist Sabzar Ahmad was among the terrorists eliminated by Indian Army.
In a separate incident, troops along the LoC in Krishnagati sector of Poonch district shot dead the intruder around 2.30 pm, an army officer said.
Meanwhile, an army porter was killed while another sustained injuries in a ceasefire violation by Pakistani troops along the Line of Control in Keran sector of Kashmir.
LoC is a de facto border that divides Kashmir into India and Pakistan controlled parts.
He said India has blatantly disrespected Security Council and United Nations Commission for India and Pakistan resolutions on Kashmir.