The Kashmir FM Radio Station after being declared illegal by Pakistan Electronic Media Regulatory Authority (PEMRA) had been shut down on October 16, 2006. The transmission had started 24 Sep 06. PEMRA along with the local police, forcibly entered radio station, and confiscated machinery and locked it up in a local police station. Licensee's argument is that AJK's home ministry issues licenses for cable operators, and hence can also permit an FM radio station. However AJK Council has enforced PEMRA jurisdiction in AJK through passage of an Act that allows PEMRA to grant such licenses. The licensee has already applied for a regular license, but from the AJK government. This licensee is not among regular licensees of PEMRA that have been allowed to establish FM stations.

It appears from the statements of Mr. Ashraf Kayani, Chief Executive of the Kashmir FM, that this was technically a case of illegal broadcasting started on a misunderstood jurisdiction by local AJK administration which did facilitate the initial setting up of radio station. According to Mr. Kiani, Chief Secretary AJK had recommended positively to AJK info department for granting licenses. AJK Information Secretary forwarded DG Information (AJK) who too recommended for Kashmir FM.  In the meantime, applicants approached the Deputy Commissioner, who allowed logistic facilities for operation of FM station in Muzaffarabad and the station was set up and it went on air before PEMRA officials from Islamabad traveled to Muzaffarabad and used local police force to shut it down.