Govt speeds up JAKFED asset liquidation to settle liabilities

JAMMU: The liquidation of the Jammu and Kashmir Cooperative Supply and Marketing Federation (JAKFED), a long-overdue process, is now nearing completion.
Over the past months, significant progress has been made, including the valuation of most assets. This effort is expected to provide long-awaited financial relief to retired employees and offer a Voluntary Retirement Scheme (VRS) to current staff, fulfilling commitments made by the government.
The decision to dissolve JAKFED, a loss-making entity, was taken by the State Administrative Council (SAC) under the leadership of then-Governor Satya Pal Malik in June 2019.
The SAC directed the Registrar of Cooperative Societies to conclude the winding-up process by August 31, 2019, under Section 74 of the Jammu and Kashmir Cooperative Society Act, 1989. Additionally, a dedicated committee was formed to coordinate the liquidation process and devise a detailed plan, including a VRS for employees.
The SAC emphasized that all movable and immovable assets of JAKFED would be transferred to the government, with financial commitments met through asset sales. The government explicitly stated it would not bear any financial liability in this regard.
However, the liquidation process faced multiple setbacks. Initial delays in appointing liquidators by the Finance Department and a lack of cooperation from the Registrar of Cooperatives hindered progress. When liquidators eventually submitted their report, it was deemed substandard, causing further delays and frustration among JAKFED employees, many of whom have been waiting for their dues since 2013.
“ The process is cumbersome and may take more time to affect the total liquidation . Despite many setbacks , the department is working round the clock with officers put on the job to clear off the remaining pendency,” said Surinder Paul Sharma, Jt. RCS Special Jammu while talking to The News Now.
Recent efforts by the Cooperatives Department have breathed new life into the process. Officers were assigned to oversee the liquidation and submit regular progress reports. Out of 11 JAKFED assets, the valuation of eight has been completed, and government departments have been approached to acquire these properties at government-approved rates.
“The funds generated from asset sales will primarily be used to clear JAKFED’s liabilities. This includes providing retirement benefits to superannuated employees who have awaited justice for over a decade and financing the VRS for remaining staff,” said Sharma.
Simultaneously, the Cooperatives Department is conducting a rigorous verification and authentication of employee service records. The poor maintenance of employee records over the years, attributed to negligence by successive JAKFED leadership, has added complexity to the task. Over one lakh entries are being authenticated to ascertain the exact number of genuine employees eligible for benefits.
In addition to the VRS, the department is considering adjusting JAKFED employees into other government departments. However, this decision hinges on the completion of the verification process and the liquidation of assets.
JAKFED once played a crucial role in procuring and distributing essential commodities like fertilizers, building materials, and domestic gas. Initially a profit-making organization, it eventually succumbed to inefficiencies and malpractices, which were exposed by investigations led by the Pillai Committee and the Joint House Committee of the erstwhile Legislative Council. These issues eroded the organization’s credibility and financial stability, culminating in its downfall.
The liquidation marks a significant step towards resolving the long-pending grievances of JAKFED employees while drawing a close to the chapter of mismanagement that plagued the organization.
By concluding this process, the government aims to honor its commitment to justice and accountability, turning the page towards a more transparent and efficient cooperative sector in Jammu and Kashmir.

Updated On 12/1/2024 12:30:37 AM

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