'You are admitting that it was a fake encounter. You have to pay the compensation,' the bench told the Gujarat government counsel Mukul Rohatagi while asking the state to be mentally prepared to pay the damages to the kin of the fake encounter's victims.

'It would only be a question of quantum,' the bench added.

As Rohtagi sought a trifle long adjournment to seek instructions on the issue from his client, the Gujarat government, the bench observed, 'That would be too long, too late. Compensation cannot wait.'

Last year, the bench had first indicated that the killings of Sheikh, his wife and friend will be probed by the Raghavan panel.

On the apex court's earlier order, the case is presently being investigated by a Gujarat police team.

Police have booked several of its officers, including then deputy inspector general D.G. Vanzara and an Indian Police Service officer from Rajasthan and arrested them for their role in the killings.