The exercise to liquidate JAKFED's assets will be completed in the next few months

Review of the service files of the employees at an advanced stage

Funds to be used for the provision of labor benefits

Mohinder Verma
JAMMU, Aug 22: The much-needed liquidation act of the Jammu and Kashmir Cooperative Supply and Marketing Federation (JAKFED) will be completed in the next few months as most properties have already been valued. This will make it easier for the Cooperative Department to provide benefits to those already retired and to offer other employees a Voluntary Retirement Program (VRS).
The decision to wind up the loss-making JAKFED was made in June 2019 by the State Administrative Council (SAC) under the leadership of the then governor of the former state of Jammu and Kashmir Satya Pal Malik and announced that the process would be initiated by the Registrar, Cooperative Societies within the meaning of Section 74 of Jammu and Kashmir Cooperative Society Act, 1989, to be completed by August 31, 2019.
The SAC also instructed the cooperative department to set up a committee to coordinate the winding up of JAKFED and to draw up a detailed wind-up plan including a corresponding VRS for the association’s employees.
“All movable / immovable assets of JAKFED are taken over by the government and any financial obligations are met by the sale of these assets by the department for cooperatives, and the government has no financial liability in this regard,” the SAC had made it clear.
Previously, however, the appointment of liquidators by the finance department was delayed and thereafter the necessary involvement of the then chancellor’s cooperatives was lacking, which meant that no progress could be made in implementing the SAC’s decision, official sources said EXCELSIOR.
After undue delay, the liquidators submitted the report, which was found to be inadequate, and accordingly the entire exercise was again delayed, much to the disappointment of JAKFED staff, whose fate is still in the balance, it said. “The Cooperatives Department has made significant strides in recent months by entrusting certain officers in the Department with the task of reporting periodically”.
“There are 11 assets of JAKFED and a valuation of eight has already been done and government departments have been asked to take these by paying the costs according to government-approved rates,” they said, adding, “There is litigation in relation to “two assets while a record relating to another asset cannot be found”.
They announced that the entire process of liquidating the assets of JAKFED will be brought to a logical conclusion within the next few months and that the funds generated by this measure will be used to settle JAKFED’s liabilities. In addition, these funds will be used to provide pensions for federal employees who have already reached retirement age and who have been waiting for justice since 2013.
“The funds will also be used to offer a Voluntary Retirement Program (VRS) to other employees, strictly in accordance with the decision of the State Board of Directors,” sources said, adding that “a detailed verification / authentication exercise is also being conducted in the Cooperative Department.” the service documents of the employees of the former JAKFED ”.
This step was unavoidable because the records on the employees are missing, mainly because all those who remained head of the federal government over the years did not pay any serious attention to the management of the files. “More than one lakh entries have to be authenticated in order to get an exact picture of the number of real employees,” informed sources.
“In addition to offering voluntary retirement plans, the cooperative department is also considering adjusting JAKFED staff in other departments, but the final decision in this regard will only be made after the review of the service records and the full liquidation of the assets are completed,” sources said.
It is important to note here that a committee of four officers from the Cooperative Department, under the strict supervision of Government Secretary, Cooperative Department Yasha Mudgal, performs the verification / authentication of the service records.
JAKFED carried out important activities such as the procurement and distribution of fertilizers, building materials, household gas, etc. Originally a profitable organization, the Federation has been unable to keep its pace due to malpractice investigated by the Pillai Committee and later by the Joint House Committee of the former Legislative Council.