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The accident occurred Sunday in the popular mountain resort town of Gulmarg, when wires supporting the cable car were hit by an uprooted pine tree, said district police chief Imtiyaz Ahmad.
Shamim Ahmad Wani, the managing director of the J&K Cable Car Corporation which operates the ride, confirmed that all seven passengers fell from the car during high winds. Wani says that the cable car system is inspected annually and this year's inspection was in May.
Summer is peak tourist season in Gulmarg, located in the Himalayan mountains, as visitors look to escape the summer heat.
The deceased included a young New Delhi couple and their two children, as well as three local tour guides. Two others were injured and taken to a nearby hospital.
More than 70 passengers were stranded in the cars after operations were suspended.