Since a historical decision taken by the country’s Parliament in August 2019 by carving out two Union Territories out of the state of Jammu and Kashmir , which we can term as happening for the first time in India’s history, Ladakh as a separate UT had to undergo a novel experience of managing administrative set up and an overhaul on its own and run its affairs independently. The two UTs have only one thing not in common , that of having a Legislative Assembly only by Jammu and Kashmir and not by Ladakh. Nevertheless, the reorganisation process would be incomplete in case Ladakh did not get its share of Assets from out of the erstwhile state as also the other part of it, the liabilities. This remaining part of the process has now been completed by transferring capital investments and outstanding liabilities of Rs.1956 crore and Rs. 2504 crore respectively to Ladakh. Since immovable properties too should be apportioned, due to these type of assets being by the very nature immovable, prudence and practical approach demand settling this issue on the principle of ”as is where is” basis.
Apparently , liabilities part being on the higher side as compared to the assets , Ladakh has to find out ways and means to pay off the liabilities for which it has to devise a mechanism to divide the same under short term and long term arrangements. Deferred liabilities could be classified depending upon the size of individual liability and on the basis of the capacity to get the same squared off. In addition to it, 20 percent of the equity and the same percentage of loans extended to the Jammu and Kashmir State Financial Corporation (JKSFC) and Grameen Bank respectively have been transferred through Book entries to Ladakh on notional basis.
Since the provisions of the Jammu and Kashmir Reorganisation Act 2019 delineate details about apportioning exercise, both the Union Territories have to follow the same. However, notable “its share” by Ladakh is in getting 8.23 percent shareholding in the Jammu and Kashmir Bank Ltd as also one post of Director and proportional number of employees’ posts too .That will provide a channel of its say to Ladakh in the affairs of the Bank having its registered office and corporate headquarters in Srinagar , at least to the extent of its operation and conducting its banking business in the new UT. Even Grameen Bank shall have one representative on its Board of Directors from Ladakh as this was a long pending demand of the people . Since Union Ministry of Home Affairs is supervising and conducting the implementation of the provisions of the Jammu and Kashmir Reorganisation Laws, entire exercise is being closely monitored by it. In respect of the requirements of personnel in various departments , adjustments and options to existing employees like in the JKSFC and Grameen Bank posted in Ladakh are now formally being put at the disposal of the UT of Ladakh after they opt to work in the same position or in any other entity set up in the UT. In other words, in administrative haul up ,still much remains to be done as various entities will continue to operate from both the UTs till a new entity was created or transferred one from the UT of Jammu and Kashmir.
The question about the Jammu and Kashmir Bank Ltd being the Bankers to the Government of Jammu and Kashmir , its status vis-a-vis the UT of Ladakh is still undecided excepting its ”operations to continue as a going concern” in both the UTs with the stipulation that UT of Jammu and Kashmir will continue to have majority shareholding in the Bank hence more say in managing affairs in respect of its banking relationship and being its main bankers. Ladakh having only nearly 14 percent shareholding stands duly transferred to the UT of Ladakh. Since Ladakh is now a separate UT , it should be left to it whether to continue with the same Bank being its exclusive bankers or choose another option but since J&K Bank’s network is spread fairly and has its stakes too spread well and deep , it requires a better role to play in giving fillip to implementation of various Central oriented developmental and self employment schemes and expanding its lending portfolio for ensuring creating of a better developmental infrastructure in Ladakh.
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