To divide assets, liabilities of J&K between 2 UTs, Centre sets up panel

New Delhi, Sep 10: With days to go before Jammu and Kashmir is made a Union Territory, the Centre has set up a panel to divide the assets and liabilities between J&K and Ladakh.

J&K and Ladakh will become Union Territories on October 31. While former defence secretary Sanjay Mitra will be the chairman of the committee, retired IAS officer Arun Goyal and retired Indian Civil Accounts Service (ICAS) officer Giriraj Prasad Gupta will be its members.

"In exercise of the powers conferred by Section 84 and Section 85 of the Jammu and Kashmir Reorganisation Act, 2019, the central government hereby constitutes the advisory committee," the home ministry notification said.

According to section 84 of the Act, the assets and liabilities of the existing state of J&K have to be divided between the Union territories of Jammu and Kashmir, and Ladakh.

On August 5, the Centre announced the abrogation of the special status given to J&K under Article 370 and bifurcation of the state into the two UTs.

The apportionment of the assets and liabilities of the existing state of J&K shall be subject to the recommendations of a committee constituted by the central government, it said.

According to Section 85 of the Act, the central government, by order, can establish one or more advisory committees for apportionment of assets, rights and liabilities of the companies and corporations constituted for the existing state of J&K between the two Union territories.