Will re-examine state legislature’s authority over J&K Bank: Governor
SRINAGAR : Jammu and Kashmir governor Satya Pal Malik on Tuesday attempted to dissuade concerns regarding the recent decision by state administrative council (SAC) on the J&K Bank and said they are re-examining the state legislature’s authority over the bank.
“As far as the accountability to the legislature is concerned, all government owned/controlled companies, including J&K Bank, which is registered as a government company, are accountable to the legislature in some respect. This is what was stated in the SAC decision. This does not add any new element. However, in view of the concerns expressed and to give comfort to employees, the government will re-examine the issue of the bank’s accountability to the state legislature,” Malik told a delegation of employees of the bank.
On November 22, the SAC headed by the governor approved a proposal for treating the J&K Bank Limited as a PSU, bringing it under the purview of the Right to Information Act, the Chief Vigilance Commissioner guidelines and the state legislature.
The SAC said the bank shall be accountable to the state legislature like other state PSUS and the annual report of the J&K Bank Ltd will be placed before the state legislature through the state’s finance department.
The decision caused an uproar in the state, with political parties and civil society accusing the governor of trampling with the autonomy of the institute and fiddling with J&K’S special status.
Malik said the bank will continue to be regulated by the Reserve Bank of India (RBI), SEBI and the Registrar of Companies and “no changes are being made or contemplated.”
“Safeguarding the autonomy and operational independence of the bank is key objective of the government at all times,” he assured. Malik said the employees should not be concerned about their employment, future prospects or salary structure under any circumstances. “The board of the bank is competent to take decisions in this regard and the powers vest with the board. No changes will be made in this,” he added. The governor said that the word PSU for the bank has “no legal connotation” and it continues to be a government owned company.