Several party leaders spoke briefly at the function, said one of the participating leaders.
"The speakers expressed their support for the PDP president saying they will stand by whatever decision she takes on the future political course of action," he said.
The PDP leader, however, insisted that no meeting of the Legislature party had taken place.
With the mourning period over, political activity for government formation is expected to gather pace now.
The state was brought under Governor's Rule with effect from January 8 -- a day after Sayeed's death -- as allies PDP and BJP failed to stake claim for government formation in view of the four-day mourning for the departed leader.
She asked people to remain cautious and help the
government establish peace in the state.
"Now, they are saying that some sheds will be constructed. The labour laws state that a labourer has to be given some shelter to save him from rains if he is working for a longer time. It's not necessary the labourers are from outside. We've not done anything yet, but they created noise," she said.
She appealed the youth of Kashmir to become "real torch-bearers" of Islam.
"Friday is a very blessed day for us. But if you see today any dignified person will think ten times whether to go for prayers. We have to see where we have taken Islam to," she said, referring to stone-pelting protests which take place usually on Friday in downtown Srinagar.
"We should create such an atmosphere that the world talks about us in a good way. But when we pelt stones, tourist or yatri or even our own people can be injured, bullets would be fired. Then who will come here," she said.
Mehbooba said that ever since PDP was formed, its aim was
Peace is possible only when the relations of both the countries are good, the Chief Minister added.
She said that despite several provocations, former Prime Minister Atal Bihari Vajpayee had gone ahead with his peace initiatives. She was apparently referring to Kargil aggression by Pakistan and attack on Parliament by Pakistan-based terror groups.
"Modi ji told me that he wishes his Pakistani counterpart on his birthday and even wished him speedy recovery during his surgery, but it was followed by Pathankot and Uri (terror attacks)", she said.
Both the countries have no other option but to hold dialogue, Mehbooba underscored and added that solution to all the problems is there in the Agenda of Alliance.
She complimented BJP ministers for thwarting the designs of those elements who wanted to spoil the atmosphere in Jammu region.
BJP and PDP have different ideologies but in Agenda of Alliance, both have agreed to maintain status quo on the issue of Article 370, Mehbooba said.
"Agenda of Alliance would facilitate dialogue, transfer of power projects, and revocation of AFSFA at some point in time," she said.
"Whatever you call it, holy or unholy alliance, but this alliance has a holy document which is Agenda of Alliance. It is a golden opportunity for all the political parties to help us implement this Agenda of Alliance," she said.
She said she hopes to take Kashmir out of the mess.
The Chief Minister also questioned why the issues related to rehabilitation of Pakistan Refugees or Kashmiri Pandits were being raked up.
She said the government of India was serious in providing livelihood to the West Pakistan refugees by absorbing them in central forces.
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