"The official was killed by the mob while he was performing his duties. It's a very sad and unfortunate incident," the DGP said.
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Earlier police sources had said that Pandit was seen moving around by people near Jamia Masjid in Nowhatta area at 0030 hours.
He was allegedly clicking pictures of people while they were coming out of the mosque.
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They said people tried to catch Pandit who allegedly fired several shots from his pistol, injuring three persons.
His body was taken to police control room for identification and other legal procedures, they said adding the situation in old city has turned tense following the incident.
The mob went on a rampage targeting empty security pickets erected in the area.
Police reinforcement were rushed in to restore normalcy in the area.
Muslims across Kashmir are observing Shab-e-Qadr (the night of power) with night-long prayers and supplications being made inside the mosques and shrines of the valley.