Clashes were also reported in the Sopore, Anantnag, Rajpora, Shopian and Safakadal areas in and on the fringes of the city.
A mob resorted to stone pelting at Janglat Mandi in Anantnag town after the Eid prayers, forcing police to burst tea as shells.
A huge number of devotees were seen offering Eid prayers at the Hazratbal shrine and other mosques and Eidgahs in the valley.
Ignoring a fresh appeal from separatist leader Syed Ali Shah Geelani against such pastime, some of the youth were carrying the Islamic State flag besides that of Pakistan and green Islamic flag.
Farooq called the Indian government "shameless" in a tweet in which he said he had been prevented for eight years from giving an Eid sermon.
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Amid all this, the Home Minister's confidence that Eid will bring peace and happiness in the Valley somewhere indicates that the government has some special plans to deal with the situation of unrest in Kashmir.
Protesters chanted pro-freedom slogans and pelted stones at security forces, which attempted to use tear gas and riot gear to control the protests. Also, pictures purportedly from south Kashmir depicting banners hailing militants including Hizbul Mujahideen commanders Wani and Sabzar Bhat also went viral on social media. Indian police didn't allow them to come out of the prayer ground.
New Delhi has also rushed 100,000 plastic bullets and PAVA grenades to quell the popular dissent.
Kashmiri resistance groups in Jammu and Kashmir have been fighting against Indian rule for independence, or for unification with neighboring Pakistan.
The Indian authorities had imposed restrictions in several areas in Srinagar city and major towns in the disputed Himalayan region.
The conflict has increasingly drawn in civilians, many of whom oppose Indian rule.