The Centre on Saturday decided to establish a mechanism to address the problems of Kashmiri Pandits effected by militancy, even as the community rejected a proposal to re-settle them in two designated places in the valley.

"We have decided to revive a system, which was earlier in the Home Ministry in 1994, to address the grievances of the Kashmiri Pandits," Deputy Prime Minister Lal Kishenchand Advani said after meeting a delegation of Kashmiri leaders in his office.

The decision comes in the wake of the recent massacre of 24 Kashmiri Pandits, in Nandimarg village in Pulwama district, in the valley.

Besides addressing the security concerns, the system will also look into the matters concerning the employment, education and financial status of the Pandits, Advani said.

Strongly rejecting the state government's proposal of re-settlement of the Pandits in Mattan and Kheer-Bhawani in the valley, the leaders, belonging to prominent organisations of displaced Kashmiris, expressed serious doubts regarding the security and financial status of the Pandits staying in and outside the valley.

"The delegation has conveyed to Advani that while the Centre is ready to talk to various groups in Kashmir, including separatists, why are Kashmiri Pandits being neglected," M K Kaw, President of All India Kashmiri Samaj, who led the delegation, said.

In a memorandum to Advani, the delegation demanded a high-level probe into the Nadimarg massacre to pinpoint the failures and weaknesses of the present security system and punish the guilty.

The delegation, comprising leaders of AIKS, Kashmiri Samiti, J and K Vichar Manch and All India Kashmiri Pandit Conference, also demanded substantial financial relief and employment for the victims of the massacre.

The meeting, which lasted for more than an hour, was also attended by Home Secretary N Gopalaswami and Special Secretary (J&K Affairs) Ashok Bhandari.