47. Application of Part.––(1) The provisions of this Part shall apply in relation to the apportionment
of the assets and liabilities of the existing State of Andhra Pradesh immediately before the appointed day.
(2) The successor States shall be entitled to receive benefits arising out of the decisions taken by the
existing State of Andhra Pradesh and the successor States shall be liable tobear the financial liabilities
arising out of the decisions taken by the existing State of Andhra Pradesh.
(3) The apportionment of assets and liabilities shall be subject to such financial adjustment as may be
necessary to secure just, reasonable and equitable apportionment ofthe assets and liabilities amongst the
successor States.
(4) Any dispute regarding the amount of financial assets and liabilities shall be settled through mutual
agreement, failing which by order by the Central Government on the adviceof the Comptroller and
Auditor-General of India.
48. Land and goods.––(1) Subject to the other provisions of this Part, all land and all stores, articles
andother goods belonging to the existing State of Andhra Pradesh shall,—
(a) if within the transferred territory, pass to the State of Telangana; or
(b) in any other case, remain the property of the State of Andhra Pradesh:
Provided that in case of properties situated outside the existing State of Andhra Pradesh, such
properties shall be apportioned between the successor States onthe basis of population ratio:
Provided further that where the Central Government is of opinion that any goods or class of goods
should be distributed among the States of Andhra Pradesh and Telangana, otherwise than according to the
situation of the goods, the Central Government may issue such directions as it thinks fit for a just and
equitable distribution of the goods and the goods shall pass to the successor States accordingly:
Provided also that in case of any dispute relating to the distribution of any goods or class of goods
under this sub-section, the Central Government shall endeavour to settle such dispute through mutual
agreement arrived at between the Governments of the successor States for that purpose, failing which the
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Central Government may, on request by any of the Governments of the successor States, after consulting
the Governments of the successor States, issue such direction as it may deem fit for the distribution of
such goods or class of goods, as the case may be, under this sub-section.
(2) Stores held for specific purposes, such as use or utilisation in particular institutions, workshops or
undertakings or on particular works under construction, shall pass to the successor States in whose
territories such institutions, workshops, undertakings or works are located.
(3) Stores relating to the Secretariat and offices of Heads of Departments having jurisdiction over the
whole of the existing State of Andhra Pradesh shall be divided betweenthe successor States on the basis of
population ratio.
(4) In this section, the expression “land” includes immovable property of every kindand any rights in
or over such property, and the expression “goods” does not includecoins, bank notes and currency notes.
49. Treasury and bank balances.––The total of the cash balances in all treasuries of the existing
State of Andhra Pradesh and the credit balances of the existing State of Andhra Pradesh with the Reserve
Bank of India, the State Bank of India or any other bank immediately before the appointed day shall be
divided between the States of Andhra Pradesh and Telangana onthe basis of population ratio:
Provided that for the purposes of such division, there shall be no transfer of cash balances from any
treasury to any other treasury and the apportionment shall be effected by adjusting the credit balances of
the two States in the books of the Reserve Bank of India on the appointed day:
Provided further that if the State of Telangana has no account on the appointed day with the Reserve
Bank of India, the adjustment shall be made in such manner as the Central Government may, by order,
direct.
50. Arrears of taxes.––The right to recover arrears of the tax or duty on property, including arrears of
land revenue, shall belong to the successor State in which the property is situated, and the right to recover
arrears of any other tax or duty shall belong to the successor State in whose territories the place of
assessment of that tax or duty is included on the appointed day.
51.Right to recover loans and advances.––(1) The right of the existing State of Andhra Pradesh to
recover any loans oradvances made before the appointed day to any local body, society, agriculturist or
other person in an area within that State shall belong to the successor State in which that area is included
on that day.
(2) The right of the existing State of Andhra Pradesh to recover any loans or advances made before
the appointed day to any person or institution outside that State shall belong to the State of Andhra
Pradesh:
Provided that any sum recovered in respect of any such loan or advance shall be divided between the
States of Andhra Pradesh and Telangana on the basis of population ratio.
52. Investments and credits in certain funds.––(1) The securities held in respect of the investments
made from Cash Balances Investment Account or from any Fund in the Public Account of the existing
State of Andhra Pradesh as specified in the Seventh Schedule shall be apportioned on the basis of
population ratio of the successor States:
Provided that the securities held in investments made from the Calamity Relief Fund of the existing
State of Andhra Pradesh shall be divided in the ratio of the area of the territories occupied by the
successor States.
(2) The investments of the existing State of Andhra Pradesh immediately before the appointed day in
any special fund, the objects of which are confined to a local area, shall belong to the State in which that
area is included on the appointed day:
Provided that the investments in such special funds on multiple entities situated indifferent parts of
the existing State, and such parts fall within the territories of the States of Andhra Pradesh and Telangana,
shall be apportioned between the successor States on the basis of population ratio.
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(3) The investments of the existing State of Andhra Pradesh immediately before the appointed day in
any private, commercial or industrial undertaking, the objects of which are confined to a local area, shall
belong to the successor State in which such area is included on the appointed day:
Provided that investments in such entities, having multiple units situated in different parts of the
existing State, and such parts fall within the territories of the States of Andhra Pradesh and Telangana,
shall be apportioned between the successor States on the basis of population ratio.
(4) Where any body corporate constituted under a Central Act, State Act or Provincial Act for the
existing State of Andhra Pradesh or any part thereof has, by virtue of the provisions of Part II, become an
inter-State body corporate, the investments in, or loans oradvances to, any such body corporate by the
existing State of Andhra Pradesh made beforethe appointed day shall, save as otherwise expressly
provided by or under this Act, be divided between the States of Andhra Pradesh and Telangana in the
same proportion in which the assets of the body corporate are divided under the provisions of this Part.
53. Assets and liabilities of State undertakings.––(1) The assets and liabilities relating to any
commercial or industrial undertaking of the existing State of Andhra Pradesh,where such undertaking or
part thereof is exclusively located in, or its operations are confined to, a local area, shall pass to the State
in which that area is included on the appointed day, irrespective of the location of its headquarters:
Provided that where the operation of such undertaking becomes inter-State by virtue of the provisions
of Part II, the assets and liabilities of––
(a) the operational units of the undertaking shall be apportioned between the two successor States
on location basis; and
(b) the headquarters of such undertaking shall be apportioned between the two successor States on
the basis of population ratio.
(2) Upon apportionment of the assets and liabilities, such assets and liabilities shall be transferred in
physical form on mutual agreement or by making payment or adjustment through any other mode as may
be agreed to by the successor States.
54. Public Debt.––(1) All liabilities on account of Public Debt and Public Account of the existing
State of Andhra Pradesh outstanding immediately before the appointed day shall be apportioned on the
basis of population ratio of the successor States unless a different mode of apportionment is provided
under the provisions of this Act.
(2) The individual items of liabilities to be allocated to the successor States and the amount of
contribution required to be made by one successor State to another shall be such as may be ordered by the
Central Government on the advice of the Comptroller and Auditor-General of India:
Provided that till such orders are issued, the liabilities on account of Public Debt and Public Account
of the existing State of Andhra Pradesh shall continue to be the liabilities ofthe successor State of Andhra
Pradesh.
(3) The liability on account of loan raised from any source and re-lent by the existing State of Andhra
Pradesh to such entities as may be specified by the Central Government and whose area of operation is
confined to either of the successor States shall devolve on the respective States as specified in
sub-section (4).
(4) The public debt of the existing State of Andhra Pradesh attributable to loan taken from any source
for the express purpose of re-lending the same to a specific institution and outstanding immediately before
the appointed day shall,—
(a) if re-lent to any local body, body corporate or other institution in any local area, be the debt of
the State in which the local area is included on the appointed day; or
(b) if re-lent to any other corporation or institution which becomes an inter-State corporation or
institution on the appointed day, be divided between the States of Andhra Pradesh and Telangana in
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the same proportion in which the assets of such body corporate or institution are divided under the
provisions of Part VII.
(5) Where a sinking fund or a depreciation fund is maintained by the existing State of Andhra Pradesh
for repayment of any loan raised by it, the securities held in respect of investments made from that fund
shall be divided between the successor States of Andhra Pradesh and Telangana in the same proportion in
which the total public debt is divided between the two States under this section.
(6) In this section, the expression “Government security” means a security createdand issued by a
State Government for the purpose of raising a public loan and having any of the forms specified in, or
prescribed under, clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944).
55. Floating Debt.—All liabilities of the existing State of Andhra Pradesh in respect of any floating
loan to provide short term finance to any local body, body corporate or other institution, shall be
determined on the following basis, namely:––
(a) if, the purposes of the floating loan are, on and from the appointed day, exclusive purposes of
either of the successor States, then, of that State;
(b) in any other case, it shall be divided on the basis of population ratio.
56. Refund of taxes collected in excess.—(1) The liability of the existing State of Andhra Pradesh to
refund any tax or duty on property, including land revenue, collected inexcess shall be the liability of the
successor State in whose territories the property is situated, and the liability of the existing State of
Andhra Pradesh to refund any other tax or duty collected inexcess shall be apportioned between the
Successor States of Andhra Pradesh and Telangana onthe basis of population ratio and the State
discharging the liability shall be entitled to receive from the other Stateits share of the liability, if any.
(2) The liability of the existing State of Andhra Pradesh to refund any other tax or duty collected in
excess on the appointed day shall be the liability of the successor State in whose territories the place of
assessment of such tax or duty is included, and the liability of the existing State of Andhra Pradesh to
refund any other tax or duty collected in excess shall be apportioned between the Successor States of
Andhra Pradesh and Telangana on the basis of population ratio and the State discharging the liability shall
be entitled to receive from the other State its share of the liability, if any.
57. Deposits, etc.—(1) The liability of the existing State of Andhra Pradesh inrespect of any civil
deposit or local fund deposit shall, as from the appointed day, be the liability of the successor State in
whose area the deposit has been made.
(2) The liability of the existing State of Andhra Pradesh in respect of any charitable or other
endowment shall, as from the appointed day, be the liability of the successor State in whose area the
institution entitled to the benefit of the endowment is located or of the successor State to which the
objects of the endowment, under the terms thereof, are confined:
Provided that any civil deposits or loan funds or charitable or other endowment fund maintained by
the existing State of Andhra Pradesh before the appointed day having jurisdiction over the entire State
shall be apportioned between the successor States on thebasis of population ratio.
58. Provident Fund.—The liability of the existing State of Andhra Pradesh inrespect of the Provident
Fund account of a Government servant in service on the appointed day shall, as from that day, be the
liability of the successor State to which that Government servant is permanently allotted.
59. Pensions.—The liability of the existing State of Andhra Pradesh in respect of pensions shall pass
to, or be apportioned between, the successor States of Andhra Pradesh and Telangana in accordance with
the provisions contained in the Eighth Schedule to this Act.
60.Contracts.—(1) Where, before the appointed day, the existing State of Andhra Pradesh has made
any contract in the exercise of its executive power for any purposes of the State, that contract shall,––
(a) if the purposes of the contract are, on and from the appointed day, exclusive purposes of
either of the successor States of Andhra Pradesh and Telangana, then it shall be deemed to have been
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made in exercise of the executive power of that State and the liability shall be discharged by that
State; and
(b) in any other case, all rights and liabilities which have accrued or may accrue under any such
contract shall be apportioned between the successor States on the basis of population ratio or in any
other manner as may be agreed to by the successor States.
(2) For the purposes of this section, there shall be deemed to be included in the liabilities which have
accrued or may accrue under any contract––
(a) any liability to satisfy an order or award made by any court or other tribunal in proceedings
relating to the contract; and
(b) any liability in respect of expenses incurred in or in connection with any such proceedings.
(3) This section shall have effect subject to the other provisions of this Part relating to the
apportionment of liabilities in respect of loans, guarantees and other financial obligations; and the bank
balances and securities shall, notwithstanding that they partake of the nature of contractual rights, be
dealt with under those provisions.
61. Liability in respect of actionable wrong.—Where, immediately before the appointed day, the
existing State of Andhra Prades his subject to any liability in respect of any actionable wrong other than
breach of contract, that liability shall,––
(a) if the cause of action arose wholly within the territories which, as from that day, are the
territories of either of the successor States of Andhra Pradesh or Telangana, be the liability of that
State; and
(b) in any other case, be apportioned between the successor States on the basis of population ratio
or in any other manner as may be agreed to by the successor States.
62. Liability as guarantor.—Where, immediately before the appointed day, the existing State of
Andhra Pradeshis liable as guarantor in respect of any liability of a registered co-operative society or
other person, that liability shall,—
(a) if the area of operations of such society or persons is confined to the territories which, as from
that day, are the territories of either of the States of Andhra Pradesh or Telangana, be a liability of that
State; and
(b) in any other case, be apportioned between the successor States on the basis of population ratio
or in any other manner as may be agreed to by the successor States.
63. Items in suspense.—If any item in suspense is ultimately found to affect an asset or liability of
the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance
with that provision.
64. Residuary provision.—The benefit or burden of any asset or liability of the existing State of
Andhra Pradesh not dealt with in the foregoing provisions of this Part shall pass to the State of Andhra
Pradesh in the first instance, subject to such financial adjustment as may be agreed upon between the
States of Andhra Pradesh and Telangana or, in default of such agreement,as the Central Government may,
by order, direct.
65. Apportionment of assets or liabilities by agreement.—Where the successor States of Andhra
Pradesh and Telangana agree that the benefit or burden of any particular asset or liability should be
apportioned between them in a manner other than that provided for in the foregoing provisions of this
Part, notwithstanding anything contained therein, the benefit or burden of that asset or liability shall be
apportioned in the manner agreed upon.
66. Power of Central Government to order allocation or adjustment in certain cases.—Where,
by virtue of any of the provisions of this Part, either of the successor States of Andhra Pradesh and
Telangana becomes entitled to any property or obtains any benefits or becomes subject to any liability,
and the Central Government is of opinion, on a reference made within a period of three years from the
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appointed day by either of the States, that it is just and equitable that such property or those benefits
should be transferred to, or shared with, the other successor State, or that a contribution towards that
liability should be made by the other successor State, the said property or benefits shall be allocated in
such manner between the two States, or the other State shall make to the State subject to the liability such
contribution in respect thereof, as the Central Government may, after consultation with the two State
Governments, by order, determine.
67. Certain expenditure to be charged on Consolidated Fund.—All sums payable by the State of
Andhra Pradesh or by the State of Telangana, as the case may be, to the other State, or by the Central
Government to the successor States, by virtue of the provisions of this Act, shall be charged on the
Consolidated Fund of the State by which such sums are payable or, as the case may be, the Consolidated
Fund of India.