Government of Jammu and Kashmir

Finance Department
Civil Secretariat, Jammu/Srinagar
******
Subject: - 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 .

Government Order No. / ~ -F of 2021

Dated: / ~ .01.2021

Consequent upon issuance of SO 339 notified on 30 th

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 following arrangements (this
consequential order is as per the figures as stood on
31.10.2019 and as per the recommendations of the
Advisory Committee on apportionment of Assets &
Liabilities of erstwhile Jammu & Kashmir):

The following Companies/ Corporations and Entities

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 hereby notionally/
temporarily transferred to the Union Territory of Ladakh.
a. lammu and Kashmir State Financial
Corporation.
b. lammu and Kashmir, Grameen Bank Limited.

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 as appropriate.

Further, the employees of the aforesaid two (02)

Corporations 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
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 will be placed at the disposal of the UT of Ladakh or
any entity designated by it.

These companies shall continue their operations for

both UTs till and if transferred to a designated
entity in 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 next Board Meeting.
Jammu & Kashmir State Financial Corporation (JKSFC}

The following arrangements shall be made in J&K

SFC for apportionment between UT of J&K and UT
of Ladakh:

• There shall be a joint Finance Corporation for UT

of J&K and UT of Ladakh created by renaming JK
SFC as 'The Jammu & Kashmi r 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.

• This Joint Corporation i.e. Jammu & Kashmir

and Ladakh Finance Corporation will have one
Director from Ladakh in its Board of Directors .

Arrangements for Jammu & Kashmir Bank Limited:

Following arrangements for Jammu & 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 & Liabilities of erstwhile State of J&K as
with reference to 31.10.2019 :

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,

a. J&K Bank Ltd. shall continue its operations as a

going concern in both the UTs.
b. The UT of J&K shall continue to have majority
shareholding in the Bank.
c. 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% as on 31.10.2019 of the
existing shareholding of the erstwhile State of
Jammu & Kashmir), is hereby transferred to the
UT of Ladakh.
d. One post of Director on the Board of the J&K
Bank is hereby earmarked for the UT of Ladakh.
e. 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.

Immovable and Movable Assets inside Erstwhile State.

Apportionment of the Immovable and Moveable assets
located inside the erstwhile State of Jammu & Kashmir is
hereby also made as per the provisions of the said SO 339 as
follows:
i. 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.
ii. 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.
Apportionment of Movable Assets.
Apportionment of movable assets is hereby made
notionally as follows:
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 i. All unpaid liabilities/ bills shall be discharged,
after due process/ scrutiny, by the respective UT
where the works/ projects were executed or
expenditure incurred.
ii. 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.
iii. Funds and pension liabilities stand apportioned
as required following the actual allocation of
employees between the UTs of J&K and Ladakh.
iv. Financial liabilities of Rs.2504.46 crores stand
transferred to the UT of Ladakh @ 2% of the
total liabilities.
v. 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.

By order of the Government of Jammu & Kashmir.

Sd/-
(Dr. Arun Kumar Mehta) IAS
Financial Commissioner,
Finance Department

No.FD/Coord/82/2019-I Dated: , 1/ .01.2021

Copy to the: -
1. All Administrative Secretaries of J&K with the request that all
unpaid liabilities/bills shall be discharged, after due
process/scrutiny, by the respective UT where the works
/projects were executed on expenditure incurred.
2. Joint Secretary, (J&K) Ministry of Home Affairs, Government of
India.
3. Commissioner/ Secretary to the Government, GAD UT of
Ladakh.
4. Chairman, Jammu & Kashmir Bank Limited with the request to
workout the modalities and apportion the assets and liabilities
of the Bank between the UT of J&K and UT of Ladakh on the
same lines as mentioned in this Government Order and also
workout the modalities to recruit a reasonable proportion of
employees in the J&K Bank Limited from the UT of Ladakh.
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5. Chairman, Jammu & Kashmir Grameen Bank with the request
to workout the modalities and apportion the assets and
liabilities of the Bank between the UT of J&K and UT of Ladakh
on the same lines as mentioned in this Government Order.
6. Managing Director, Jammu & Kashmir and Ladakh Finance
Corporation with the request to workout the modalities and
apportion the assets and liabilities of the Corporation between
the UT of J&K and UT of Ladakh on the same lines as mentioned
in this Government Order.
7. Director General, Budget, Finance Department for necessary
action.
8. Director General, Accounts & Treasuries, J&K for necessary
action.
9. Director General, Economics & Statistics, J&K for necessary
action.
10. Director General, J&K Funds Organization for necessary action.
11. Director, Archives, Archaeology and Museums, J&K.
12. Pvt. Secretary to Hon'ble Lieutenant Governor, J&K.
13. Pvt. Secretary to Chief Secretary J&K.
14. Pvt. Secretary to Financial Commissioner, Finance Department
for the information of the Financial Commissioner.
15. Pvt. Secretary to Commr/ Secretary to the Government,
General Administration Department.
16. Incharge Website, Finance Department.
17. Government Order file (w.2 .s.c.)/ Stock file.

(Sii'ri ~ rma) KAS

Deputy Secretary to the Government
Finance Department

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