High Quality Content by WIKIPEDIA articles! Srinagar About is the capital of the northernmost state of the disputed Jammu and Kashmir that is situated in India-administered Kashmir. It is situated in Kashmir Valley and lies on the banks of the Jhelum River, a tributary of the Indus. The city is famous for its lakes and houseboats. It is also known for traditional Kashmiri handicrafts and dry fruits. It is also the headquarters of Srinagar district.