Article 35A, which accords special rights and privileges to the citizens of Jammu and Kashmir, is facing a legal challenge in the Supreme Court.
"Spontaneous shutdown is being observed in many places in Srinagar, the summer capital of Jammu and Kashmir, and Anantnag district in south Kashmir," the official said.
He said announcements were made on loudspeakers that Article 35A has been scrapped and people were asked to observe a strike and come out to protest.
"Shops and other business establishments, which had opened this morning, downed shutters after rumours of Article 35A being scrapped spread like wild fire and were circulated on social media, the official said.
Stone-pelters clashed with security personnel in Anantnag and in the Safakadal area here in the wake of the rumours, he said.
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