A bench headed by Chief Justice P Sathasivam pulled up the state government for not filing its response for justifying such a policy. It directed the state to file an affidavit by September 16 explaining the rationale behind such a policy.
"We express our deep anguish. It (policy) may give a wrong message to others," the bench said.
The state government sought two weeks time to file the affidavit but the bench directed it to do so within a week and posted the matter for hearing on September 16.
On the previous hearing, senior advocate Bhim Singh, appearing for Sudesh Dogra of J&K National Panthers Party who has filed the PIL, had cited a government order of 1990 saying that this was discriminatory as "the next of kin of personnel of paramilitary forces, if he is permanent resident of J&K, is sanctioned Rs five lakh (in case of death), whereas for other personnel of paramilitary forces only Rs 2 lakh is sanctioned if they are Indian citizens.