APPORTIONMENT OF ASSETS AND LIABILITIESState · Uttar Pradesh
Section 42 of The Uttar Pradesh Reorganisation Act, 2000 in hindi
- (1)The provisions of this Part shall apply in relation to the apportionment of the assets and liabilities of the existing State of Uttar Pradesh immediately before the appointed day.
- (2)The successor States shall be entitled to receive benefits arising out of the decisions taken by the predecessor State and the successor States shall be liable to bear the financial liabilities arising out of the decisions taken by the existing State of Uttar Pradesh.
- (3)The apportionment of assets and liabilities would be subject to such financial adjustment as may be necessary to secure just, reasonable and equitable apportionment of the 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 advice of the Comptroller and Auditor-General of India.
Summary
- This section serves as the introduction to the rules for dividing all assets like property and liabilities like debt between the two states.
- The new successor states have the right to receive any benefits that come from decisions made by the original state government before the split.
- The new states are also required to take on the financial responsibilities and bills that resulted from those same old decisions.
- The law requires that the division of property and debt must be fair, reasonable, and balanced for both states.
- If the two states cannot agree on how to split something, the Central Government will step in and make a final decision.
- When the Central Government makes such a decision, it must first get professional advice from the Comptroller and Auditor General of India.
Practical examples
1Before the states split, the government of Uttar Pradesh won a lawsuit that entitles them to a 5 crore rupee refund, so Section 42 ensures that Uttaranchal and the new Uttar Pradesh share that benefit fairly.
2The two states are arguing over who should pay back a massive loan used for mountain roads, and since they cannot agree, the Central Government uses Section 42 to order a split after checking with the national audit office.
FAQ
1. What is the main purpose of Section 42 of The Uttar Pradesh Reorganisation Act, 2000?
Section 42 of The Uttar Pradesh Reorganisation Act, 2000 sets the general framework for how all assets and debts of the original state should be divided between the two new states.
2. How are disputes over property split resolved under Section 42 of the Uttar Pradesh Reorganisation law?
Under Section 42 of the Uttar Pradesh Reorganisation law, if the states cannot agree, the Central Government decides the matter based on advice from the Comptroller and Auditor General.
Test yourself
Q1.According to Section 42 of The Uttar Pradesh Reorganisation Act, 2000, if a dispute arises regarding assets and liabilities, whose advice must the Central Government seek?
Q2.Under Section 42 of The Uttar Pradesh Reorganisation Act, 2000, what standard must the apportionment of assets and liabilities meet?