(1)  Subject to the provisions of this Act, the Legislative Assembly may make laws for the whole or any part of the Union territory of Jammu and Kashmir with respect to any of the matters enumerated in the State List except the subjects mentioned at entries 1 and 2, namely “Public Order” and “Police” respectively or the Concurrent List in the Seventh Schedule to the Constitution of India in so far as any such matter is applicable in relation to the Union territories.

   (2)  Nothing in sub-section (1) shall derogate from the powers conferred on Parliament by the Constitution to make laws with respect to any matter for the Union territory of Jammu and Kashmir or any part thereof.