Rasheed stormed into the well of the House and criticised the central and state governments over the issue and sought replies from them.
"We will not let Kashmir become another Gaza and Palestine, we will not tolerate a separate township for the Pandit community in Kashmir," he said.
He, however, welcomed the return of the community to their native place.
"Kashmiri Pandits are welcome to return to their native places and live peacefully with Muslims as they have been living for centuries, but we will not allow the creation of another Gaza within Kashmir," he said.
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Rashid also entered into a verbal dual with BJP members including Ravinder Raina, who objected to his protests.
"Kashmiri Pandit community has every right to return to wherever they want to, they were forced to leave their houses and the atmosphere is not right for their return to their native places as yet, so they need a secure place where they can live," Raina said.
Later Rashid returned to his seat after Speaker Kavinder Gupta asked him to do so and raise the issue from there. Amid protests by him, the proceedings continued.
"Majority of Kashmiri Pandits are not interested in settling back in Kashmir. PDP led by Mufti Mohammed Sayeed is unfortunately acting as a facilitator in the grand plan of BJP brigade to communalise and polarise the situation in Jammu & Kashmir," he claimed.
He also lashed out at NC MLAs for "keeping mum" on the issue.
He claimed Kashmiri Muslims on the contrary have suffered a great deal in the state.
Countering his allegations, Minister for Education Naeem Akhtar told reporters, "Everybody knows the meaning of composite, it means that it is not communally oriented. It will have access to everybody... This is my understanding."
Sayeed met Union Home Minister Rajnath Singh yesterday in Delhi and assured him that his government will soon acquire land for creating "composite townships" for displaced Kashmiri Pandits in the Kashmir Valley.