SRINAGAR: The chief minister of Indian-held Kashmir (IHK), Mufti Mohammad Sayeed, termed the waving of Pakistani flag at a Hurriyat rally as 'unacceptable', saying "it was illegal and could not be tolerated", according to reports by Indian media.

Masarat Alam, a likely successor to Hurriyat leader Syed Ali Shah Geelani, organised a rally in the restive summer capital of Indian-held Kashmir. The rally, which was attended by thousands, was held as a show of strength to welcome Geelani on his return from New Delhi.

However, hours after the rally, the chief minister received a call from Indian Home Minister Rajnath Singh who demanded 'immediate and strict action' against the Hurriyat leader's demonstration. He also said that there could be no compromise on national security, as politics could not impinge on national security.

Read more: Kashmiri leader waves Pakistani flag at rally in Srinagar

A first information report had been filed against those involved in the incident, but there have been no arrests made as yet.

Wahid Rehman Parra, youth president and spokesperson of Mufti Sayeed's People's Democratic Party has said that 'separatists' cannot be denied in the political space any longer.

"Separatism and Pakistan constituency in Kashmir is a reality and we have to deal with it. We can't deny democratic space to these people. It is an ideological battle now. We have to make them mainstream by giving them democratic space,"

India reacted furiously following the show of support for Pakistan at the Srinagar rally.

National Spokesperson Bharatiya Janata Party (BJP) GVL Narasimha Rao said the act was completely unacceptable. “We expect the state government of Jammu and Kashmir, headed by Mufti Sayeed, to take cognisance of the matter,” Rao added.

Masarat Alam was released from prison after four years on March 7 this year. The move drew a negative response from Indian Prime Minister Narendra Modi who said “I am angered and condemn the release, just like other lawmakers."

Modi's Hindu nationalist BJP wants to bring the contested region into the Indian mainstream, while its regional partner, the PDP, supports self rule.

Read more: Release of Kashmiri separatist leader creates hurdles for Modi