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Jammu & Kashmir: The Administrative Changes When One State Becomes Two Union Territories

The post of Governor will cease to exist and will be replaced by the administrator appointed by the President.

Prime Minister Narendra Modi, then President-Elect Ram Nath Kovind, and BJP President Amit Shah, in New Delhi. (Photograph: PIB)
Prime Minister Narendra Modi, then President-Elect Ram Nath Kovind, and BJP President Amit Shah, in New Delhi. (Photograph: PIB)

The Parliament passed the Jammu & Kashmir Reorganisation Bill, 2019, putting into motion a process for the first time in India’s history—converting a state into two union territories.

Union home minister Amit Shah said in the Lok Sabha that this transition is temporary in nature and Jammu & Kashmir, at an appropriate time, will once again become a state. The transition will mean realigning the composition, responsibilities and powers of the government running the union territories of Jammu & Kashmir and Ladakh.

The top constitutional post of Governor will cease to exist and will be replaced by the administrator appointed by the President who will be known as Lieutenant Governor. Given the earlier special status of the state, the passing of the bill also means a total of 164 existing laws will be repealed and complete application of 106 laws from the day the bill receives the assent of the President. Among these include the abolition of laws which disallowed non-permanent residents of the state from owning immovable properties. Other laws which will not come into effect will include Prohibition of Child Marriage Act, Prevention of Corruption Act as well as key laws governing criminal trials in the rest of the country (The Code of Criminal Procedure, The Indian Evidence and the Indian Penal Code).

Who Wields The Real Power

As per The Jammu & Kashmir Reorganisation Act, the administration of the state will be conducted by the President of India through an administrator. In the case of Jammu & Kashmir, this administrator will be known as Lieutenant Governor. The chief minister and members of the Legislative Assembly will be elected by direct election. The total strength of the assembly will be 107 and 24 seats will be allotted to the portion of J&K which is currently under the occupation of Pakistan. These seats will not be counted while considering the strength of the assembly. The LG, appointed by the President, will have the power to summon the sitting or dissolve the legislative assembly.

The chief minister is mandated to inform the LG of all the decisions which will be related to the administration as well as legislative proposals. Jammu & Kashmir was one of few states to have a Legislative Council apart from a State Assembly. The Legislative Council will be abolished under the Jammu & Kashmir Reorganisation Act, 2019.

The Process Of Formulating Laws

The distribution of subjects on which laws need to be made is done under the Constitution through three lists—state, union and concurrent lists. In the case of Jammu & Kashmir, the state assembly will have the power to make laws enumerated in the state list except when it comes to the subject of public order and the police. If any law framed by the assembly under the state list is in conflict with a law made by the Parliament on the same subject, then the law passed by the assembly will be void.

The Act also lists down certain kinds of bills which will need the prior recommendation of the Lieutenant Governor before they are introduced in the Legislative Assembly. These include:

a.) matters dealing with any tax except when it involves reduction or removal of any tax.

b.) laws amending any financial obligations undertaken or to be undertaken by the
Government of J&K.

c.) appropriation of money out of the consolidated fund of the union territory.

d.) matters which deal with exemption of taxation of properties of the central government.

The Annual Budget

The budget will now be a statement of receipts and expenditure of the union territory and referred to as the ‘’annual financial statement’’. This will be laid out by the authority of the Lieutenant Governor.

The statement will have to reveal the expenditure incurred on the consolidated fund of Jammu & Kashmir. The expenses incurred from the consolidated fund of Jammu & Kashmir will include salaries and expenditure of the office of the LG, speaker and deputy speaker of the legislative assembly, salaries of judges of the High Court of Jammu & Kashmir, money required to be paid under a court judgement, decree or order; money to be paid as interest and loan advanced to the union territory of Jammu & Kashmir from the consolidated fund of India.

Courts And All-India Services

The Jammu & Kashmir Reorganisation bill expressly bars the legislative assembly from initiating any discussion of the conduct of any Supreme Court judge or a judge of the High Court. The LG will also not be dependent on the assembly and will act on his discretion when it comes to matters related to the All-India Services and the Anti Corruption Bureau.

Division Of Assets, Liabilities And Employees

As per the provisions of the bill which will dictate the reorganisation of the state into two union territories, it will be the duty of the central government to appoint advisories committees to look into distribution of assets and liabilities of corporations of the state between the two UTs, issues surrounding generation and supply of electricity and water as well on Jammu & Kashmir State Financial Corporation. These committees will have to submit their report to the LG within six months who is mandated to act on them within 30 days.

The employees currently working under the state government of Jammu & Kashmir will have to submit their preference to work under one of the two union territories. The LG after considering their option will be empowered to determine the allocation of the employees to the newly formed union territories. The timeline for determining the distribution of employees of state public undertakings is a year until which it is decided who is allocated under the administration of which of the two union territories.