The producers had even booked a stadium in Srinagar, and invited the biggies of the Hindi film industry to attend.
The cast and crew were also all ready to leave for Srinagar when the government officials called and informed them that they cannot grant permission for the premiere.
After the recent bout of unrest, the government believes the premiere may be targeted by separatists protesting the film.
Lamhaa tells the story of the Kashmiris who are stuck in the war between the armed forces and the separatists. The film stars Bipasha Basu, Sanjay Dutt and Kunal Kapoor all of whom shot in the terror-struck region. Rahul Dholakia directed the film, which is slated to release on July 16.