I don´t understand. If India is a democratic country, how come India cannot accept a plebiscit in Kashmir. I am getting the impression Indians do not understand the meaning of democracy. I know most Indians ( and Pakistanis too) have very little education. But at least he forumites here should understand that not accepting the wish of the majority of Kashmiri people is against the principles of democracy.
Please don't lecture us on democracy but then let me attempt to answer your question as to why Plebiscite is not supported by GoI. To do this I need to give some historical background.
1) When India/Pakistan (two-nation theory) were given independence by British, the princely states were given option to accede to either secular Union of India or Islamic Republic of Pakistan. The Maharaja (prince) of Kashmir wanted his state to be independent for a while before he can choose to accede to India or Pakistan and it signed necessary documents with them.
2) Pakistani army supported Tribals from NWFP (the present Taliban comes from here) came to Kashmir to occupy and force it to join Pakistan. As a result, the Maharaja of Kashmir Hari Singh signed the Instrument of Accession with GoI effectively acceding Jammu and Kashmir (J&K) to Union of India.
3) After this, the Indian Army entered J&K to drive away Pakistani tribals and they succeeded in driving away them from Srinagar (present capital of J&K) till the areas of present Line of Control (LOC), after which the then Prime Minister Jawahar Lal Nehru (JLN) went to UN with misplaced trust in it to solve the problem.
4) The UN ruled that Pakistan tribal forces/Army should withdraw completely from J&K and India could maintain minimum military presence and then conduct a plebiscite and decide which dominion J&K population wants to join. But Pakistani forces never withdrew their forces from occupied part of J&K and effectively nulling UN resolution. So, Plebiscite never took place. I have to point here that UN resolutions were non-binding.
5) It is 63 yrs now and there has been lot of blood-shed happened because of Pakistan sponsored terrorism in Indian part of Kashmir and ethnic cleansing of Kashmiri Pandits was perpetrated by Pakistani sponsored terrorists. Elections were held in India Kashmir (from 1957) to select their representatives to the State Assembly as well as Indian Parliament. So, effectively and legally Kashmir is part of India. And can country in right mind doesn't conduct Plebiscite to give away its land.