"To us the move to remove Army from the strategically important position that too at the personal intervention of Prime Minister Narendra Modi is a disappointment," Agnishekher, Convener, Panun Kashmir, an organisation of displaced Kashmiri Pandits (KPs), said.
He said the Prime Minister must have been "misguided" on the issue.
"Was not Prime Minister being briefed properly that South Kashmir during last one decade has become the epicentre of separatistism and terrorism."
"Attacks on police stations, security pickets, bunkers are taking place every now and then. Daily casualties of security personnel and innocent people by terrorists should have made Government of India wiser about the ground situation," Chrungoo said.
He said the decision will help separatists and strengthen the hands of local militant recruiters.
"The decision not to renew the lease of areas which were under Army utilization at a time when security situation on the ground is deteriorating gives a feeling that the GoI is very secretly bringing about demilitarization of the state," he added.