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Reorganization of state: Govt kicks off process to divide assets, liabilities between J&K, Ladakh

Srinagar, Jan 30:  Process has started to divide assets and liabilities of erstwhile state between two newly created Union Territories (UTs) of Jammu and Kashmir, and Ladakh.

Union Ministry of Home Affairs has formed a three-member committee headed by former Defence Secretary Sanjay Mitra for apportion of assets and liabilities between the two Union Territories. The committee has been given six months to submit its report.

The Finance Department has written to departmental heads, public sector undertakings and autonomous bodies to conduct audit up to October 2019.


“While progress has been achieved, there needs to be more emphasis particularly in view of the fact that advisory committee would need annual accounts for the purpose of apportionment of assets and liabilities between Union Territory of J&K and Ladakh,” a government order reads.

An official of Finance Department said that once the departments submit the audit report, the committee will decide about the division of assets and liabilities between the two UTs.

Erstwhile state has six properties in Delhi, Amritsar, Chandigarh and Mumbai, which will be divided between the two union territories. The properties include Kashmir House at Prithviraj Road in Delhi and the J&K House at Chanakyapuri in Delhi.

The physical assets include around 10,000 vehicles in J&K and arms and ammunition for the police.  Sources said the arms distribution will be need based. “More arms will be provided to Kashmir as there is very less need in Ladakh,” sources said.

The official said the committee will also take a decision about the division of other assets including PSUs, universities, hydro-power plants and other institutions in two UTs. “Deliberations are going on as to how these properties will be apportioned,” he said.

According to Section 84 of the Reorganisation Act 2019, assets and liabilities of the erstwhile state have to be apportioned between the Union Territories of J&K and Ladakh.

“The committee has been tasked to ensure both UTs get a fair share,” the official said.

It has to look into aspects like area, population, remoteness and backwardness while distributing assets.