While vetting the stand of the J&K Bank that the bank does not fall under the jurisdiction of the Election Commission (EC) and was an independent institution, the election commission has conveyed its ‘no objection' to the retirement age enhancement announced by the bank on April 1, 2009. The EC has asked the bank to go ahead with its business and administrative plans even during the period of elections.
On April 9, 2009, the Commission had asked the Chairman of the J&K Bank to "explain why the retirement age of bank employees was unilaterally raised from 58 to 60 without the concurrence of the Election Commission in view of the model code of conduct."
The Bank had responded that the decision was taken because of the ‘administrative exigency after proper approval of the Board of Directors." The Bank also responded by saying that it was an "independent institution" and "did not fall under the jurisdiction of the EC."
On April 7, the JK Bank had filed a petition in the High Court saying that the Bank "not being a state or its instrumentality is not subject to the jurisdiction of EC and it has not violated any model code of conduct." The High Court had while passing the orders on April 8 had directed the letter of the EC "be kept in eclipse".