Assets, liabilities of erstwhile state govt apportioned between J&K, Ladakh

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Rs 1956 cr investment, Rs 2504 cr liabilities transferred to Ladakh which gets 8.23 % shareholding, Director’s post in JKB

Jammu: The assets both immovable and moveable, liabilities, rights and posts of erstwhile State Government have been apportioned between the Union Territory of Jammu and Kashmir and Union Territory of Ladakh with immediate effect strictly as per the provisions of the Jammu and Kashmir Reorganization Act, 2019.
In the process, investments in capital works/projects amounting to Rs 1956 crore and financial liabilities of Rs 2504 crore have also been transferred to the Union Territory of Ladakh by the Government of Jammu and Kashmir UT.
Moreover, the Ladakh UT has received 8.23% shareholding, one post of Director and reasonable proportion of employees’ posts in the Jammu and Kashmir Bank and one representative on the Board of Directors of the J&K Grameen Bank, which was the long pending demand of Leh and Kargil districts.
All this has been done strictly as per the provisions of Sections 84 and 85 of the Jammu and Kashmir Reorganization Act, 2019 and as per the recommendations of an Advisory Committee constituted by the Union Government in the month of September last year. Moreover, the entire exercise was closely monitored by the Union Ministry of Home Affairs.
As per the order issued by the Financial Commissioner Finance Department Dr Arun Kumar Mehta, 20% of equity and 20% of the loans extended by the erstwhile Government to the Jammu and Kashmir to State Financial Corporation and Jammu and Kashmir Grameen Bank Limited have been notionally/temporarily transferred to the Union Territory of Ladakh.
“The immoveable assets of Financial Corporation and Grameen Bank located in the UT of Ladakh will be transferred to an entity as and when it is set up by the UT of Ladakh as appropriate. Further, the employees of Financial Corporation and Grameen Bank posted in UT of Ladakh or otherwise will be given the option to work in Ladakh or in any entity to be set up by the UT of Ladakh and based on such option their services will be placed at the disposal of UT of Ladakh or any entity designated by it”, the Financial Commissioner Finance said.
These entities will continue their operations for both UTs till and if transferred to a designated entity of UT of Ladakh. However, the UT of Ladakh will have one representative on the Board of Directors of J&K Grameen Bank and the exercise for seeking options and transferring staff of the Grameen Bank to the UT of Ladakh or to the designated entity will be completed by next Board meeting.
About the Jammu and Kashmir Bank Limited, the Financial Commissioner Finance said that J&K Bank will continue its operations as a going concern in both the UTs and UT of J&K will continue to have majority shareholding in the bank. Fifty one percent of the shareholding in the J&K Bank will remain with the UT of J&K while as remaining 8.23% shareholding (approximately 13.89% as on October 31, 2019 of the existing shareholding of the erstwhile State of J&K) has been transferred to the UT of Ladakh.
Moreover, one post of Director on the Board of the Jammu and Kashmir Bank has been earmarked for the UT of Ladakh and a reasonable proportion of employees of bank will be recruited from the UT of Ladakh, the details of which will be worked out by the bank shortly.
As per the order, all immovable assets belonging to the erstwhile Government of Jammu and Kashmir excluding those belonging to Corporations, Boards and other entities, except where explicitly provided for, stand apportioned to the UTs of J&K and Ladakh respectively as on “as is where is” basis.
Similarly, all moveable assets belonging to the erstwhile Government of J&K excluding those belonging to Corporations, Boards and other entities which are location specific such as office equipment, laboratory equipment, office supplies, records etc except where it is explicitly provided for, stand assigned on an “as is where is” basis based on their locations in the UTs of J&K and Ladakh.
All unpaid liabilities/bills will be discharged after due process/scrutiny by the respective UTs where the works and projects were executed or expenditure incurred. However, investments in capital works/projects amounting to Rs 1965 crore stand transferred to the UT of Ladakh.
Likewise, funds and pension liabilities stand apportioned as required following the actual allocation of employees between the UTs of J&K and Ladakh and financial liabilities of Rs 2504.46 crore stand transferred to UT of Ladakh at the rate of 2% of the total liabilities.