20% Each of Equity, Loans of SFC, Grameen Bank Notionally Transferred To Ladakh
Srinagar: After one and half year into the bifurcation of erstwhile Jammu and Kashmir state into two Union territories, the Finance Department on Thursday issued formal orders for apportionment of economic affairs and posts between J&K and 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 given arrangements,” reads an order.
“This consequential order is as per the figures as stood on 31-10-2019 and as per the recommendations of the Advisory committee on appointment of Assess and Liabilities of erstwhile Jammu and Kashmir”, the order reads.
The Companies, Corporations and entities, which as per the order, include; Jammu and Kashmir State Financial Corporation and Jammu and Kashmir, Grameen Bank Limited, pertaining to the domain of the Finance Department, 20% of the Equity and 20% of the Loans extended by the erstwhile Government of Jammu and Kashmir are notionally/temporarily transferred to the Union Territory of Ladakh. The immoveable assets of these Companies, Corporations and entities, located in the UT of Ladakh shall be transferred to another entity as and when it is setup by the UT of Ladakh as appropriate, the order reads.
The order reads that the employees of these transferred Corporations, posted in the UT of Ladakh or otherwise shall be given the option to work in the UT of Ladakh and based on such option their services will be placed at the disposal of the UT or any entry designated by it. These companies shall continue their operations for both UT’s till and if transferred to a designated entity in UT of Ladakh, the order reads.
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 its designated entity shall be completed by next Board meeting, it says.
With regard to the Jammu and Kashmir State Finincial Corporation(JKFSC), the arrangements to be made for appointment between UT of J&K and UT of Ladakh, as per the Order include; setting up of a joint Finance corporation for UT of J&K and UT of Ladakh, which is to be renamed as the ‘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”, the order says.
“This joint Corporation i.e Jammu and Kashmir and Ladakh Finance Corporation will have one Director from Ladakh in its Board of Directors”, as per the order.
With regard to arrangements for Jammu and Kashmir Bank Limited, the order says that “Arrangements for Jammu and Kashmir Bank Limited is hereby also made as per the provisions of the SO 339 dated 30.10.2020 issued by the General Administration Department in furtherance of recommendations of Advisory Committee on Assets and Liabilities of erstwhile state of J&K as with reference to 31.10.2019.”
J&K Bank Ltd., as per the Order, shall continue its operations as a going concern in both the UTs.
“The UT of J&K shall continue to have majority shareholding in the bank with 51% of the shareholding in the J&K Bank Ltd. (approximately 13.89% as on 31.10.2019 of the existing shareholding of the erstwhile state of Jammu and Kashmir) is hereby transferred to the UT of Ladakh”, the Order says.
One post of Director on the Board of the J&K Bank, as per the Order, is earmarked for the UT of Ladakh.
“A reasonable proportion of employees of the J&K Bank Ltd. shall be recruited from the UT of Ladakh, details of which shall be worked out by the Bank.”
On the Immovable and Movable Assets Inside Erstwhile State, the Order says that such assets located inside the erstwhile state of Jammu and Kashmir is hereby also made as per the provisions of the said SO 339.
“All immovable assets belonging to the erstwhile Government of J&K, excluding those belonging to Corporations/Boards/ other Entities, except where expenditure provided for, stand apportioned to the UTs of J&K and Ladakh respectively on an ‘as is where is’ basis”, the Order reads.
“All moveable assets belonging to the erstwhile Government of J&K, excluding those belonging to Corporations/Boards/ 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.”
In the matter of apportionment of Movable Assets, it is as per to the Order notionally to be followed that, “All unpaid Liabilities/Bills shall be discharged, after due process/ scrutiny, by the respective UT where the works/projects were excited or expenditure incurred.”
Investments in capital works/projects indicated in the statement of Finincial assets under ‘ capital expenditure’, amounting to RS. 1956 crores stand transferred to the UT of Ladakh, the order maintains.
“Funds and pension liabilities stand apportioned as required following the actual allocation of employees between the UT’s of J&K and Ladakh.”
“Financial liabilities of Rs. 2504.46 crores stand transferred to the UT of Ladakh @2% of the total liabilities.”
The book value of capital assets of the erstwhile state of J&K, as per the Order, are hereby transferred on a notional basis to the UT of Ladakh on the principle of ‘as is where is’ basis. (GNS)
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