Liability issue: Jharkhand may have to pay 4,000 cr to Bihar

Jharkhand may have to pay about Rs 4,000 crore to Bihar, from which it was carved out, on account of settlement of employees` pension and liability of state guarantee to the corporations.

Ranchi: Jharkhand may have to pay about Rs
4,000 crore to Bihar, from which it was carved out, on account
of settlement of employees` pension and liability of state
guarantee to the corporations.
At a top-level meeting convened by Union Home Secretary G
K Pillai in Delhi yesterday, Bihar demanded about 4,000 crore
from Jharkhand for settlement of liabilities on account of
employees` pension and state guarantees to the corporations, a
top official source said here today.

The demand is mainly to settle the pension liability of
the employees, who were originally Bihar government`s
employees before the division of the state. The liability of
Jharkhand state towards the state guarantee to different
corporations is also due, to Bihar.

The demand has been pending since the creation of
Jharkhand in the year 2000 and estimated up to March, 2010.

The distribution of assets and liabilities between the
mother state, Bihar, and Jharkhand has been done as per the
Bihar Reorganization Act, 2000. But, the distribution of
liabilities on these two accounts has been a bone of
contention between the two states.
As per the Act, the liability of pension and liability of
state guarantee for corporations is to be distributed as per
the ratio of employees distributed between the two states, the
official said.

On the other hand, the same liabilities in the case of
Uttarakhand and Chhattisgarh, created simultaneously, were
fixed as per the proportion of their population distribution,
he claimed.

During the yesterday`s meeting, Chief Secretary of Bihar
Anup Mukherjee demanded for payment of the liabilities from
Jharkhand as per the reorganization act, while his counterpart
in Jharkhand stressed that the liability of the state should
be fixed as per the norms adopted in the case of Uttarakhand
and Chhattisgarh states.

However, the Union Home Secretary said the two states
should settle the liability issue mutually within 60 days in
consonance with the Bihar Reorganization Act, 2000, else the
Centre will pass an award on its own as per the existing law,
the official said.

The central government`s award is most likely to favour
the Bihar Government`s stand on the issue, he added.

PTI

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