Although the film is based on facts, but facts have been overly dramatised to appeal the audience and play with their emotions. I can give a first hand account of all this because I worked in mainstream media and watched everything getting unfolded in front of my own eyes. Most of the killings by terrorists at the time were target killings. Hit list was released from Pakistani controllers and terrorists in Kashmir would execute it without any question or applying any brains.
So the terrorist used to kill people (Hindu pandits, muslims, rich, poor) everyone who was in their hit list, and move on to their next target. There used to be absolutely no melodrama as depicted in the begining of the movie (asking victims wife to eat the blood soaked rice etc.).
Both communities in Kashmir were tightly bonded, so a scene showing pandits being stopped from availing ration is a big lie. Muslim community supported, gave shelter and solaced the affected Hindu families. Though at times it meant that they (those Muslim families) also got added to the hit list.
A lot of movies on Kashmir exodus have been produced before, but none distorted the facts as has been done in Kashmir Files.