Hurriyat said the Pandits are a vital part of the Kashmir society and no individual or any group is against their return.
A day after the Centre asked Jammu and Kashmir government to identify land where displaced Kashmiri Pandits could be suitably rehabilitated, hardline Hurriyat Conference led by Syed Ali Shah Geelani on Wednesday said "rigidness of the Indian government" was "unjustified".
In a written reply in Lok Sabha on Tuesday, Minister of State for Home Haribhai Parathibhai Chaudhary had said further action would be taken once the land has been identified. "The rigidness of the Indian government over the setting up of the composite township for the migrant Kashmiri Pandits is unjustified.
"Hurriyat cautions that the division of Kashmiris on religious lines and isolation of the Pandits from the society will not be allowed and both the communities collectively will not let this to happen," a Hurriyat spokesman said.
There are about 62,000 registered Kashmiri migrant families in the country, who left the Valley after the onset of militancy in Jammu and Kashmir in the early 1990s.
About 40,000 registered Kashmiri migrant families are living in Jammu, about 20,000 in Delhi-NCR and about 2,000 families are settled in other parts of the country.
The Hurriyat said the Pandits are a vital part of the Kashmir society and no individual or any group is against their return.
"We are in no way against the return and rehabilitation of the Pandit community in the Valley but the Indian government and its policy makers want to play a very dangerous game under its grab and they not only want to divide the Kashmiri society on religious lines but they also want to harm the freedom struggle of the Kashmiris," he said.
The spokesman said Kashmir issue is not about Hindu-Muslim dispute but the "people of this land are demanding their right to self determination for the last seven decades".
The Hurriyat expressed apprehension that the composite townships "will act as safe zones for the communal agents and the Sang Parivar people and there is every possibility of misuse of these safe zones".
Hurriyat also criticized the role of PDP, National Conference and "all other people of this tribe", saying these people are "playing a leading role in the implementation of the dangerous policies of India and they have sold their conscience for the chair and power".