There would not have anything called "Kashmirayat" if the Indian Army had not twarted the Pak tribal attack after partition of the Country in 1947. The Indian Govt agreed to take action only after the deed of Accession was signed by Raja Hari Singh.
Any way it would be better to give independence to those who want to secde from the Union of India and then let them fight with Pak for giving independence to the Pak occupied Kashmir. However the Indian govt cannot porceed with that option for various reasons. The issue was dragged to the UN by Pandit Jawahar Nehru (one of the blunders committed by him). The only solution now possible is to convert the LOC into an International Border and close the chapter once and for all.