The members who walked out from the House were Congress MLCs Ghulam Nabi Monga and Sham Lal Bhagat and National Conference MLCs Shehnaz Ganai and Ali Muhammad Dar. They are also Panchayat representatives.
The members described the government answer to a question raised by Monga regarding the Panchayati Raj institutions as "unsatisfactory".
Minster for Rural Development and Panchayati Raj, Abdul Haq Khan, while replying to Monga's questions, said the remuneration from January to March last year in favour of panches and sarpanches of the state got "lapsed due to the non-availability of MT (money transfer) at treasuries".
On Panchayati Raj elections, the minister said the government is committed to hold the polls this year.
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"The elections shall be conducted by the Chief Electoral Officer of the state for 2016 elections and not under the Election Commission. An amendment to this effect has also been made in Section 36, Act number 2 of 1989," Khan said.
However, Monga took exception to the government's decision to hold polls under the Chief Electoral Officer.
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Independent MLA Engineer Rasheed was marshalled out from assembly after he entered into a heated argument with BJP members at the end of his speech.
While participating in the debate, Rasheed termed the debate a futile exercise.
He compared Burhan Wani to Subash Chandra Bose and Raj Guru.
Rasheed said the militants were not taking arms for being uneducated or to get monetary benefits but their one point agenda is to ask New Delhi to fulfill promises made to them at UN.