Dhar was subsequently appointed the Home Secretary and then the Deputy Home Minister of Kashmir in 1948, when Sheikh Abdullah was the Prime Minister of Jammu and Kashmir. He was a Member of the Jammu and Kashmir State Constituent Assembly from 1951 to 1957 which confirmed Kashmir's accession to India. He was also a Member of the State Assembly from 1957 to 1967, and was appointed Cabinet Minister, in-charge of various portfolios. He was later elected to the Rajya Sabha from Jammu and Kashmir in 1972. He was appointed as the Union Minister for Planning in July, 1972.