Indian government has stayed silent on this issue since independence. This is for 2 reasons – one, vote bank politics. The demand for Azaad Kashmir is based on same fundamentals as Pakistan – hatred against Hindus because they worship idols. To counter it, somewhere debate on religious views are bound to come up. That may have detrimental effect on vote in other regions as well.
Second, Indian leaders have historically been a scared lot. Bravery has not been an asset of those who succeed in a political creature dominated by sycophancy. No one wants to upset the fanatic Jihadis too much. Better to focus on selfish short term gains.
The ethnic cleansing of Kashmiri Pandits over last 700 years is one of the bloodiest chapters of world history. You need guts to stand for right when you face the biggest villains of world. Please read my other posts on this. Also this video:
Disclaimer: We believe in "Vasudhaiv Kutumbakam" (entire humanity is my own family). "Love all, hate none" is one of our slogans. Striving for world peace is one of our objectives. For us, entire humanity is one single family without any artificial discrimination on basis of caste, gender, region and religion. By Quran and Hadiths, we do not refer to their original meanings. We only refer to interpretations made by fanatics and terrorists to justify their kill and rape. We highly respect the original Quran, Hadiths and their creators. We also respect Muslim heroes like APJ Abdul Kalam who are our role models. Our fight is against those who misinterpret them and malign Islam by associating it with terrorism. For example, Mughals, ISIS, Al Qaeda, and every other person who justifies sex-slavery, rape of daughter-in-law and other heinous acts. Please read Full Disclaimer.