JKSFC renamed as Jammu & Kashmir and Ladakh Finance Corporation
Finance dept issues order for apportionment of assets, rights, liabilities between J&K, Ladakh UTs
Srinagar: The Jammu & Kashmir Finance department Thursday issued formal orders for the apportionment of assets, rights, liabilities and posts of the erstwhile state of Jammu and Kashmir between the union territories of J&K and Ladakh.
As per the order, the apportionment has been made as per the figures that stood on 31 October, 2019 and as per the recommendations of the advisory committee on the apportionment of assets and liabilities of erstwhile Jammu & Kashmir State.
In 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 have been notionally/temporarily transferred to the Union Territory of Ladakh.
The order states that immoveable assets of the Jammu and Kashmir State Financial Corporation and Jammu and Kashmir Grameen Bank Limited, located in Ladakh, shall be transferred to an entity as and when it is set up by the UT of Ladakh as appropriate.
“Further, the employees of the two corporations posted in Ladakh or otherwise shall be given the option to work in Ladakh or in any entity to be set up by the UT of Ladakh. Based on such option their services will be placed at the disposal of the UT of Ladakh or any entity designated by it,” the order states.
It further states that these companies shall continue their operations for both UTs till and if transferred to a designated entity in the UT of Ladakh.
“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 the next Board meeting,” it states.
As per the order, the Jammu & Kashmir State Financial Corporation (JKSFC) has been renamed as the Jammu & Kashmir and Ladakh Finance Corporation under the provisions of Section 3A of SFC Act, 1951.
“20 percent of the equity and 20 percent of the loan extended by the erstwhile government of J&K to the J&K State Finance Corporation is apportioned in favour of UT of Ladakh. This Joint Corporation will have one Director from Ladakh in its Board of Directors,” the order states.
As per the order, the Jammu and Kashmir Bank Ltd. will continue its operations as is going in both the UTs and the UT of J&K will continue to have a majority shareholding in the Bank.
“51 percent of the shareholding in the Bank will remain with the UT of J&K. The remaining 8.23 percent shareholding in the Bank (approximately 13.89 percent as on 31.10.2019 of the existing shareholding of the erstwhile State of Jammu & Kashmir), is transferred to the UT of Ladakh,” the order states.
It further states that one post of Director on the Board of the J&K Bank is earmarked for the UT of Ladakh. “A reasonable proportion of employees of the Bank will be recruited from the UT of Ladakh, details of which shall be worked out by the Bank.”
The order states that the apportionment of the immovable and moveable assets located inside the erstwhile State of Jammu & Kashmir is also made as per the provisions of the SO 339.
“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,” the order states.
It states that 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.
The apportionment of movable assets will be made based on their locations in both the UTs.
The order further states that all unpaid liabilities/bills shall be discharged, after due process and scrutiny by the respective UTs, where the works and projects were executed or expenditure incurred.
“Investments in capital works/projects indicated in the statement of Financial Assets under ‘Other Capital Expenditure’, amounting to Rs 1956 crores stand transferred to the UT of Ladakh,” the order states.
It states that the funds and pension liabilities stand apportioned as required, following the actual allocation of employees between the UTs of J&K and Ladakh.
“Financial liabilities of Rs 2504.46 crores stand transferred to the UT of Ladakh at 2 percent of the total liabilities. The Book value of capital assets of the erstwhile state of J&K are hereby transferred on a notional basis to the UT of Ladakh on the principle of ‘as is where is’ basis,” the order states.