In a written reply to a question in the Assembly, she said the commission's recommendation last year of giving Rs 10 lakh as compensation to Dar "cannot be accepted" as a probe in the matter was still on.
The chief minister said the human rights body had last August observed that it was "handicapped" to go into the conduct of the Army.
A video had gone viral on April 9, 2017 wherein Dar was strapped to the bonnet of a moving Army jeep in Budgam district, the day when the bypoll to Srinagar Lok Sabha seat was held.
In May that year, Major Leetul Gogoi, the officer said to have tied Dar to the jeep, was given a commendation card by Army chief General Bipin Rawat.
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Mehbooba argued that until the probe was completed, paying a compensation would "tantamount to establishing the guilt" of the accused without affording him an opportunity to be heard.
The state government had discharged its obligation by registering a case and initiating an investigation, she added.
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