According to reports, the grenade exploded outside his residence due to which terrorists missed their target.
Ganguly got in touch with Chappell as he thought he "would be the best person" to help him in his mission.
Jammu and Kashmir Director General of Police (DGP) S.P. Vaid said: "A terrorist, Mushtaq Ahmad Chopan, died in a grenade explosion when challenged by sentry while trying to escape from Tral police station."
During Chappell's stint with the Indian team, the swashbuckler lost captaincy and also his place in the squad for a while.
The area has been cordoned off and a search operation is underway, a police official said.
It was a four-match Test series between India and Australia when Ganguly announced his retirement out of the blue.
Sourav Ganguly revealed that his differences with Greg Chappell started with a side game during the tour of Zimbabwe in 2005.
"A grenade exploded near Tehsil office in Pulwama resulting in minor injuries to four policemen," a police officer said.
If passed by Congress and signed into law by US President Donald Trump, the bill will end the diversity visa programme and reduce the overall immigration levels from currently averaging 1.05 million to 2,60,000 a year.
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