Kashmir has been divided between India and Pakistan since the end of British rule in 1947 and both countries claim it in full.
An order issued late on Tuesday by India's home ministry declared the Awami Action Committee (AAC) an unlawful association under the country's stringent anti-terror laws, banning it for five years.
A separate ministry notification announced the five-year ban of the Jammu and Kashmir Ittihadul Muslimeen (JKIM).
India has banned 10 political groups in the region since Hindu nationalist Prime Minister Narendra Modi's government imposed direct rule on the region in 2019, cancelling its constitutionally guaranteed semi-autonomy.
Amit Shah, India's powerful interior minister, trumpeted the ban on social media and warned that those “involved in activities against the nation” would face the “crushing blow” of Modi’s government.
Farooq said the ban was a “continuation of the policy of intimidation and disempowerment” he accused Indian authorities of implementing in Kashmir in 2019.
Politicians from Kashmir's pro-India political parties also criticised the ban in a rare act of solidarity with the separatist group.
Rebel groups have waged a decades-long campaign in Kashmir demanding either independence or a merger with Pakistan.
New Delhi regularly blames Pakistan for arming militants and helping them launch attacks, an allegation Islamabad denies.
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