The separatist outfit also claimed that there was no connection between the Kashmir "issue" and the ongoing polls in the state.
"The statement of Jaitley is far from reality and historic and political perspective of the disputed nature of the state. There is no relation between the issue of Kashmir and the so called elections," Hurriyat said in a statement here.
The statement came a day after the Union Finance Minister said in Srinagar that Pakistan must understand that boundaries with India cannot be redrawn as the state was an integral part of this country.
Hurriyat said the elections are meant for addressing administrative issues.
The outfit also claimed that public agitations of 2008 and 2010 should serve as an eye-opener for those thinking that by taking part in the electoral exercise people have shunned their "legitimate struggle".
It also asked people to observe a complete strike on December 8 against Prime Minister Narendra Modi's visit.
Meanwhile, Jammu and Kashmir High Court Bar Association (JKHCBA) also reacted strongly to the statement of Jaitley and said the Union minister is unaware of the Kashmir issue.
"JKHCBA strongly denounces the statement of Jaitley. The Bar Association feels that Jaitley like other Indian leaders does not perhaps know as to what the Kashmir issue is all about," the Bar said in a statement here.
The Bar while inviting the Union minister for a debate, said Jaitley must also know that Kashmir has a historical perspective and no statement can, therefore, be made by anyone, in defiance of that historical perspective.
"The Bar Association hopes that Jaitley will accept the invitation and agree to a debate with the Bar Association on Kashmir issue on any date convenient to him," it said.