Ladakh Takes 8.28% Of JK Bank, 20% In 6 Companies As 32 Entities Survived Division

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by Tahir Bhat

SRINAGAR: In a development coinciding with the first anniversary of the UT system rollout in erstwhile Jammu and Kashmir state and the oath-taking of the new LAHDC dispensation in Leh, the committee that was set up for the apportionment of Assets and Liabilities of the erstwhile State of Jammu and Kashmir between the Union Territory of Jammu and Kashmir and Union Territory of Ladakh has made its exercise public.

Civil Secretariat in early August 2019.

Civil Secretariat in early August 2019.

Here are the key highlights of the order issued by the General Administration Department:

JK Bank

As per the order put in the public domain, the UT of Ladakh will get 8.23 per cent of the bank’s shareholding which equals to 13.89 per cent of the existing shareholding of the erstwhile State of Jammu & Kashmir. The UT of Jammu and Kashmir will continue to have 51 per cent shareholding. Ladakh will get one post of director on the bank board and a reasonable proportion of employees.

J&K Bank Corporate Headquarters Srinagar. KL Image

The exact details from the order are:

“The arrangements for Jammu and Kashmir Bank Ltd shall be as follows:

  1. J&K Bank Ltd. shall continue its operations as a going concern in both the UTs.
  2. The UT of J&K shall continue to have majority shareholding in the Bank.
  3. 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.
  4. One post of Director on the Board of the J&K Bank shall be earmarked for the UT of Ladakh.
  5. 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.

Six Companies

The panel has given Ladakh 20% of the equity and 20% of the loans extended by the erstwhile Government of Jammu and Kashmir from the six companies:

  1. Jammu and Kashmir State Financial Corporation
  2. Jammu and Kashmir Grameen Bank Ltd.
  3. The Jammu and Kashmir Small Scale Industries Development Corporation Ltd (JKSICOP).
  4. J&K Scheduled Castes, Scheduled Tribes and Backward Classes Development Corporation Ltd.
  5. Jammu Kashmir Trade Promotion Organisation
  6. Jammu and Kashmir State Cooperative Bank Ltd., Srinagar.

The order reads: “Provided that, the immoveable assets of Companies/ Corporations and Entities mentioned above, located in the UT of Ladakh, shall be transferred to an entity as and when it is set up by the UT of Ladakh:

Provided further that the employees of the aforesaid six (06) companies 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 and based on such option their services will be placed at the disposal of the UT of Ladakh or an entity designated by it:

Provided also that these companies shall continue their operations for both UTs till transfer to a designated entity in UT of Ladakh takes place.”

SRTC

The Jammu and Kashmir State Road Transport Corporation is the main public career of the erstwhile state. It is in red. The panel has ordered the following:

  1. JKSRTC will remain a going concern for the UT of J&K only. There will be no apportionment of equity of JKSRTC to UT of Ladakh.
  2. The fixed assets of JKSRTC, located in the UT of Ladakh shall be transferred to any entity designated by the UT of Ladakh, as and when it is established or designated.
  3. Nineteen (19) buses currently operational in the UT of Ladakh, 20 additional buses, 10 (ten) of which are below five years old and 10 trucks, 05 of which are below five years old, stand transferred to the UT of Ladakh or to an entity to be established/designated by it.
  4. Till such an entity is designated/established for the UT of Ladakh, JKSRTC will continue its operations from both the UTs.
  5. The employees of JKSRTC posted in UT of Ladakh or otherwise, shall be given the option to work in the UT of

SRTC

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.”

A Member On Board

The panel has ruled that the UT of Ladakh will have one representative on the Board of Directors in the following corporations:

  1. J&K Grameen Bank
  2. J&KSICOP
  3. J&K SC, ST and OBC Development Corporation Limited
  4. J&K State Cooperative Bank Limited

No Division

In almost 32 commercial entities, the panel has decided against any division in equity, investment and loans, subject to the proviso at the end:

Kashmir has dense thick forests

(i)      The Jammu and Kashmir State Forest Corporation.
(ii)       Ellaquai Dehati Bank.
(iii)      Jammu and Kashmir Minerals Ltd.
(iv)     Jammu and Kashmir Projects Construction Corporation Ltd.
(v)      Jammu and Kashmir Police Housing Corporation Ltd.
(vi)      Jammu and Kashmir State Overseas Employment Corporation Ltd.
(vii)     Jammu and Kashmir State Industrial Development Corporation Ltd. (SIDCO)
(viii)    Jammu and Kashmir State Agro Industries Development Corporation
(ix)      Jammu and Kashmir Tourism Development Corporation
(x)      Jammu and Kashmir Handicrafts (Sales and Export) Corporation Ltd.
(xi)     Jammu and Kashmir Industries Ltd.
(xii)     Jammu and Kashmir Cements Ltd.
(xiii)    Jammu and Kashmir Horticulture Produce Marketing and Processing Corporation Ltd.(xiv)    Jammu and Kashmir State Handloom Corporation Ltd.
(xv)    Jammu and Kashmir State Cable Car Corporation Ltd.
(xvi)    Jammu and Kashmir Women’s Development Corporation Ltd.
(xvii)   Jammu and Kashmir Medical Supplies Corporation Ltd.
(xviii)   National Projects Construction Corporation Ltd.
(xix)    Tawi Scooters Ltd.
(xx)     Himalayan Wool Combers Ltd.
(xxi)    J&K State Handloom Handicrafts Raw Material Supplies Organization Ltd.
(xxii)   Ply-Board Industries Ltd.
(xxiii)  Kashmir Ceramics Ltd.
(xxiv)  Citizen’s Co-operative Bank Ltd., Jammu
(xxv)   Jammu Central Co-operative Bank Ltd., Jammu
(xxvi)   Urban Co-operative Bank Ltd., Anantnag
(xxvii) Baramulla Central Co-operative Bank Ltd.
(xxviii) J&K State Co-operative Agriculture and Rural Development Bank Ltd., Srinagar
(xxix)  Jammu and Kashmir Handloom Fabric Marketing Co¬operative Societies Ltd.
(xxx)   Registrar, Co-operative Societies, J&K, Srinagar.
(xxxi)  Jammu and Kashmir State Power Development Corporation Ltd
(xxxii) Chenab Valley Power Projects Pvt. Ltd.

It further said: “Provided that the employees of these Companies / Corporations and Entities who are posted in the UT of Ladakh or otherwise shall be given the option to work in the UT of Ladakh or in any new entity to be setup by the UT of Ladakh and based on such option their services will be placed at the disposal of the UT of Ladakh or an entity designated by it.

Provided further that the physical fixed assets of these corporations, if situated in the UT of Ladakh, will be transferred on an ‘as is where is’ basis to the UT of Ladakh or an entity established by it.”.

The Statement

The official spokesman also issued the following statement with regard to the development, historic in nature:

“The Lieutenant Governor of Jammu and Kashmir, in terms of section 84(3) read with section 85(2) of Jammu and Kashmir Reorganization Act, 2019, is pleased to apportion the Assets, Liabilities and Posts of the erstwhile State of Jammu and Kashmir between the Union Territory of Jammu and Kashmir and Union territory of Ladakh as per Annexures A, B, C, D, E, F, G, H and I to the notification issued in this regard.

All references to the Union Territories of Jammu and Kashmir or Ladakh shall mean the geographical area represented by the respective Union territories or shall mean the respective Governments of the Union territories as the case may be in the context of their usage.

The lieutenant governor of Union territory Jammu and Kashmir Manoj Sinha addressing Press conference at Raj Bhawan Srinagar on Thursday, October 15, 2020. KL Image by Bilal Bahadur

According to a notification issued in this regard, section 84 and 85 of Jammu and Kashmir Re-organization Act, 2019 provided for apportionment of Assets and Liabilities of the erstwhile State of Jammu and Kashmir between the Union Territory of Jammu and Kashmir and Union Territory of Ladakh; and section 85 of the Jammu and Kashmir Re-organization Act, 2019 provided for establishment of one or more Advisory Committees for apportionment of Assets, Rights and Liabilities of the Companies and Corporations constituted for the State of Jammu and Kashmir between Union Territory of J&K and UT of Ladakh.

Also, in terms of section 84 and 85 of the Jammu and Kashmir Re-organization Act, 2019, the Central Government, vide Order No. 11014/5/2014-K-I/III dated 09.09.2020, constituted an Advisory Committee under the Chairmanship of Sanjay Mitra, IAS (Retired) which submitted its report to the Ministry of Home Affairs, Government of India. The comments of the Government of Jammu and Kashmir and Government of Ladakh were sought on the recommendations of the Advisory Committee by the Ministry of Home Affairs, Government of India. The Ministry of Home Affairs, Government of India, held consultations with the Union Territory of J&K and Union Territory of Ladakh and based on the agreements between the Union Territory of J&K and UT of Ladakh, the Ministry of Home Affairs, Government of India vide No. 11014/05/2014-K-I/K-III dated 28.10.2020 conveyed to issue necessary orders in terms of Jammu and Kashmir Re-organization Act, 2019; and the Lieutenant Governor of Jammu and Kashmir accepted the recommendations of the Advisory Committee as per the agreements arrived at between Union territory of J&K and Union Territory of Ladakh as conveyed by Ministry of Home Affairs vide afore-stated communication.

The notification further added that this apportionment shall be in force with effect from 31.10.2020. The annexures mentioned above have been enclosed herewith for necessary reference.”

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