The controversy started on May 26, 2008 when the Congress-People's Democratic Party (PDP) government cleared the diversion of 39.88 hectares of land to the Amarnath Shrine Board.

The allotment was approved by two PDP ministers. A few days after the land diversion was approved, the PDP launched an agitation against it, which led to violent protests in the Valley.

On June 28, the PDP withdrew support to Ghulam Nabi Azad's Congress-led government. The following day, Governor N.N. Vohra, also the chairman of the shrine board, said that the board didn't need the land. The minority government reversed its earlier allotment of land on July 1 and the Azad government fell on July 7.

The Valley celebrated the reversing of the land transfer order. But this infuriated Hundus in the region, and the state has been on the boil ever since.

The Hindus seek restoration of the 39.88 hectares of land allotted to the Amarnath Shrine Board and also want Governor N.N. Vohra, who is seen as sympathetic to the Kashmiris, to quit.

On the other hand, people of the Kashmir Valley do not want the restoration of the land to the SASB. Many feel diversion of land to the shrine board will mean settlement of non-Kashmiris in the Valley.