Shiv Sena activists led by senior leader Radhay Maharaj staged the protest on Jammu-Pathankot highway in Kathua.
Raising anti-government slogans, they blocked the highway and burnt effigy of the chief minister.
Maharaj said it was very unfortunate that the BJP-PDP government in the state has cleared the ex-gratia.
He said that by giving compensation to the family members of Burhan Wani, Mehbooba has shown her "real face".
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