Ladakh gets 8.23% Shareholding in J&K Bank

Ground Report| News Desk| On the first anniversary of re-organisation of Jammu and Kashmir, the Lieutenant Governor of Jammu and Kashmir Union Territory on Thursday apportioned assets and liabilities of erstwhile state of Jammu and Kashmir government between successor Union Territories of J&K and Ladakh.

The apportionment of liabilities and assets has been carried on the basis of recommendations made by a three- member panel headed by former defence secretary Sanjay Mitra.

The J&K Bank Limited, according to a notification issued by the  General Administration Department of J&K UT, shall continue its operations as a going concern in both the UTs.

According to the  arrangement,51% of the shareholding in the J&K Bank Ltd. shall remain with the UT of J&K. “The remaining 8.23% shareholding in the J&K Bank Ltd. (approximately 13.89% of the existing shareholding of the erstwhile State of Jammu & Kashmir), shall be transferred to the UT of Ladakh,” reads the notification.

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It states that one post of Director on the Board of the J&K Bank shall be 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 will be worked out by the Bank,” the notification further states.

According to the arrangement, 20% of the equity and 20% of the loans extended by the erstwhile Government of Jammu and Kashmir are notionally/temporarily transferred to the UT of Ladakh in Jammu and Kashmir State Financial Corporation, Jammu and Kashmir Grameen Bank Ltd, The Jammu and Kashmir Small Scale Industries Development Corporation Ltd (JKSICOP), J&K Scheduled Castes, Scheduled Tribes and Backward Classes Development Corporation Ltd, Jammu Kashmir Trade Promotion Organisation, Jammu and Kashmir State Cooperative Bank Ltd., Srinagar.

There will be no division of equity, investment and loans in 32 corporations and companies and their control will lie with the government of J&K Union Territory.

Those entities are  Jammu and Kashmir State Forest Corporation, Ellaquai Dehati Bank,Jammu and Kashmir Minerals Ltd, Jammu and Kashmir Projects Construction Corporation Ltd, Jammu and Kashmir Police Housing Corporation Ltd, Jammu and Kashmir State Overseas Employment Corporation Ltd,Jammu and Kashmir State Industrial Development Corporation Ltd, KNO reported.

(SIDCO),Jammu and Kashmir State Agro Industries Development Corporation, Jammu and Kashmir Tourism Development Corporation ,Jammu and Kashmir Handicrafts (Sales and Export)Corporation Ltd,Jammu and Kashmir Industries Ltd, Jammu and Kashmir Cements Ltd, Jammu and Kashmir Horticulture Produce Marketing Corporation Processing Corporation Limited , Jammu and Kashmir Women's Development Corporation Limited, Jammu and Kashmir State Handloom Corporation Ltd,Jammu and Kashmir State Cable Car Corporation Ltd, Jammu and Kashmir Medical Supplies Corporation Ltd, National Projects Construction Corporation Ltd, Tawi Scooters Ltd., Himalayan Wool Combers Ltd, J&K State Handloom Handicrafts Raw Material Supplies Organization Ltd, Ply-Board Industries Ltd, Kashmir Ceramics Ltd, Citizen's Co-operative Bank Ltd Jammu, Jammu Central Co-operative Bank Ltd Jammu, Urban Co-operative Bank Ltd. Anantnag, Baramulla Central Co-operative Bank Ltd, J&K State Co-operative Agriculture and Rural Development Bank Ltd Srinagar,Jammu and Kashmir Handloom Fabric Marketing Cooperative Societies Ltd, Registrar Co-operative Societies, J&K, Srinagar, Jammu and Kashmir State Power Development Corporation Ltd and Chenab Valley Power Projects Pvt. Ltd.

Under the arrangement, there shall be a Joint Finance Corporation for the UT of J&K and UT of Ladakh created by renaming the JKSFC as The Jammu & Kashmir and Ladakh Finance Corporation' under the provisions of section 3A of the SFC Act, 1951.

“20% of equity and 20% of loan extended by the erstwhile Government of J&K to the J&K State Finance Corporation shall be apportioned in favour of the UT of Ladakh,” reads the notification.

The Joint Finance Corporation shall have one Director from Ladakh in its Board of Directors.

Moveable assets

According to the order, all moveable assets stand apportioned on an 'as is where is' basis between the UTs of J&K and Ladakh, based on location.

It states that, a three -member committee shall be set up to identify works of Art, Artifacts and Archival Record currently in the UT of J&K.

“One of the members of the Committee shall be an expert from the Ministry of Culture while there shall be one member each from UTs of J&K and Ladakh respectively,” the notification reads.

It further states that the items pertaining to Ladakh, thus identified by the committee shall be transferred to the UT of Ladakh or any entity designated by it.

The LG has ordered that all unpaid liabilities/bills shall be discharged, after due process/scrutiny, by the respective UT where the works/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 notification states.

According to the arrangement, financial liabilities of Rs. 2,504.46 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 shall be transferred on a notional basis to the UT of Ladakh on the principle of as is where is' basis,” the order states.

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