Governor Satya Pal Malik’s decision to grant J&K Bank Limited a status of a Public Sector Undertaking came under criticism on Saturday from political parties and the civil society here.
However, a spokesman of the Governor’s administration said it has no intention of interfering in the day-to-day affairs of the bank and its functional autonomy “with its Board of Directors as supreme decision-making body remains unquestioned”.
“The bank will continue to be regulated by the RBI. The latest decision is only aimed at promoting good governance and transparency in the functioning of the bank,” said the government spokesman.
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Since the State government holds 60% share in J&K Bank, it is a PSU for all practical purposes, said the spokesman.
Roll back decision: PDP
Former Chief Minister and Peoples Democratic Party president Mehbooba Mufti demanded “immediate rollback” of the decision taken by State Administrative Council, headed by Mr. Malik, on November 22.
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“The Governor’s administration is taking decisions which smack of attempts to fiddle with the basic character of the State’s special status. The [J&K Bank] decision took its autonomy away,” said Ms. Mufti.
She alleged assaults on multiple fronts were being launched against J&K’s special status by the Governor-led administration. “The J&K Bank [decision] is part of this game plan and this was the reason PDP came together with the NC [National Conference] and the Congress to form a government and prevent such interventions,” she said.
Ms. Mufti said Governor’s rule was not a permanent arrangement and the administration must concentrate on day-to-day functioning and desist from taking decisions with far-reaching consequences.
“It is not for a set of bureaucrats and civil servants to take decisions of far-reaching consequence in the State,” she said.
Former Finance Minister and PDP leader Haseeb Drabu also said he agrees “totally” that the order should be rescinded.