It is very sad to hear that such things happen. I do not approve of fake encounter if the muslim who is killed is not a criminal. But if he is a criminal I fully justify because our justice system protects the criminals who are behind killings of 1000 hindus in Hyderabad (1990), Mumbai bomb blasts and killing of millions of hindus in Kashmir.
In Islamic countries such killings happen and the victims are non-muslims. There won't be any arrests and everything is justified by majority muslims as it is considered sentence from Allah.
Watch the videos: http://www.youtube.com/watch?v=2WLoasfOLpQ http://www.youtube.com/watch?v=lYB4pG3kHIY
Another good article http://www.path2usa.com/articles/article_murali0121.htm