The Kashmir Bar Association and political groups raised doubts over the credibility of the state government to investigate the racket.

Following the huge public and political outrage, the state government then handed over the case to the Central Bureau of Investigation (CBI) on May 1, 2006.

The Jammu and Kashmir High Court also took notice of media reports and ordered that the CBI investigation be monitored at the highest level of the state judiciary.

A woman, Sabina of Srinagar, was arrested and named 'kingpin of the sex scandal'. Police alleged that Sabina was running a brothel in Srinagar luring young girls with jobs and monetary benefits and forcing them into prostitution.

Two ministers - G.M. Mir of the Congress and independent legislator Raman Matoo - were arrested in the scam. Also arrested were BSF DIG (deputy inspector general) K.S. Padhi, former additional advocate general of the state Anil Sethi, IAS officer Iqbal Khanday and some police officials.

It was also reported that senior security officials detained in the sex scandal told the CBI that Sabina's network was, in fact, a source of information for them about terrorists who visited her brothel in the heart of old Srinagar.

The case was transferred to a Punjab court Sep 4, 2006 after a Supreme Court order when Kashmir Bar Association and separatists threatened defence lawyers.

The CBI is yet to complete its investigation and the case is still going on in a sessions court in Punjab. The accused are out on bail.