Kounsarnag is in the eye of a new controversy in Kashmir. The controversy erupted when a group of Kashmiri Pandits asked the state government to allow them to proceed for an annual yatra to the Kounsarnag lake from the valley side, which was opposed by a number of locals and pro-freedom political parties.

The lake has much ecological importance as it provides water to half of southern Kashmir's districts. The civil society of Kashmir has opposed the move citing what it calls "cultural aggression" by India in the region to undermine its Muslim majority demographic.