JKNPP workers led by its chairman Harsh Dev Singh staged the protest at the Exhibition Ground here.
They accused the BJP of "placating the secessionist forces" to save its alliance with the PDP.
Singh told reporters that the move was a shot in the arm for "subversives and anti-national elements".
"Instead of taking punitive action against the anti- national elements, the governments at the Centre and in the state preferred to take forward the suggestion...to release nearly 4,500 first-time stone pelters," he said.
This followed the recommendation of a high-powered committee headed by Director General of Police S P Vaid which submitted its report to her.