Malik and over a dozen of his party colleagues were detained at Budshah Chowk in the heart of the city when they tried to proceed to Lal Chowk from the nearby Maisuma headquarters shortly after Friday prayers, official sources said.
The separatist leader had planned a sit-in at Lal Chowk to express solidarity with the Kashmiri students of Swami Vivekananda Subharti University at Meerut against the action taken by the University and the UP police against them.
"Kashmiris will not accept any toying with the future of our youngsters. Oppressive measures against Kashmiri students in Meerut is a reflection of India's animosity against people of Jammu and Kashmir," Malik said.
Meanwhile, some of the suspended students staged a demonstration here and asked the state government to ensure their safe migration to educational institutions in the Valley.
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"We are afraid of returning to the university and want Chief Minister Omar Abdullah to help us to get admission here to pursue our education," one of the students said.
Police said barring stray incidents of stone-pelting after Friday prayers, the situation throughout the Valley remained peaceful.
Reacting to the incident, state CPI(M) Secretary M Y Tarigami said, "Though the charges have been dropped, the whole incident is reflective of an unwarranted and uncalled for trend, which is against the spirit of democratic set up.