Finance Department has apportioned assets, rights, liabilities and posts of erstwhile State of Jammu and Kashmir between the Union Territory of J&K and Union Territory of Ladakh.
“Consequent upon issuance of SO-339 notified on 30th of October, 2020 by General Administration Department, sanction is hereby accorded to the apportionment of assets, rights, liabilities and posts of erstwhile State of J&K between the Union Territory of J&K and Union Territory of Ladakh as per the figures of 31.10.2019 and as per the recommendations of the Advisory Committee on apportionment of Assets and Liabilities of erstwhile Jammu and Kashmir,” reads an order of the Finance Department, J&K Government issued here on Thursday.
With regard to the Companies, Corporations and entities pertaining to the domain of the Finance Department, 20 percent of the equity and 20 percent of the loans extended by the erstwhile Government of Jammu and Kashmir notionally/ temporarily transferred to the Union Territory of Ladakh.
“The immoveable assets of Jammu and Kashmir State Financial Corporation (JKSFC) and Jammu and Kashmir Grameen Bank Limited (JKGBL) located in the UT of Ladakh shall be transferred to an entity as and when it is set-up by the UT of Ladakh as appropriate.
Whereas, the employees of these two Corporations posted in the UT of Ladakh or otherwise, shall be given the option to work in the UT of Ladakh or in any entity to be set-up by the UT of Ladakh. “Based on such an option their services will be placed at the disposal of the UT of Ladakh or any entity designated by it,” the order says.
These companies shall continue their operations for both UTs till and if transferred to a designated entity in UT of Ladakh. Meanwhile, the UT of Ladakh will have one representative on the Board of Directors of J&K Grameen Bank.
“The exercise for seeking options and transferring staff of the Grameen Bank to the UT of Ladakh or to its designated entity shall be completed by next Board Meeting,” it says.
The State Financial Corporation will make arrangements for apportionment between UT of J&K and UT of Ladakh i.e, there shall be a joint Finance Corporation for UT of J&K and UT of Ladakh created by renaming JK SFC as ‘The Jammu and Kashmir and Ladakh Finance Corporation’ under the provisions of section 3A of SFC Act, 1951.
“20% of the equity and 20% of the loan extended by the erstwhile Government of J&K to the J&K State Finance Corporation is hereby apportioned in favour of UT of Ladakh,” it says.
The order reads that this Joint Corporation i.e. Jammu and Kashmir and Ladakh Finance Corporation will have one Director from Ladakh in its Board of Directors.
The J&K Bank limited shall continue its operations as a going concern in both the UTs as per the provisions of the SO-339 dated 30.10.2020 issued by the General Administration Department (GAD) on the basis of recommendations of Advisory Committee on Assets and Liabilities of erstwhile State of J&K as with reference to 31.10.2019.
However, the UT of J&K shall continue to have majority shareholding in the Bank.
“51 % of the shareholding in the J&K Bank Ltd shall remain with the UT of J&K and the remaining 8.23% shareholding in the J&K Bank Ltd (Approximately 13.89 % as on 31.10.2019 of the existing shareholding of the erstwhile State of J&K) transferred to the UT of Ladakh,” reads the order.
One post of Director on the Board of the J&K Bank earmarked for the UT of Ladakh, and a reasonable proportion of employees of the J&K Bank Ltd shall be recruited from the UT of Ladakh, which would be worked out by the bank.
With regard to the apportionment of the immovable and moveable assets located inside the erstwhile State of Jammu and Kashmir, all immovable assets belonging to the erstwhile Government of J&K, excluding those belonging to Corporations, Boards, other entities, except where explicitly provided for, stand apportioned to the UTs of J&K and Ladakh respectively on an ‘as is where is’ basis.