Section 86 of the States Reorganisation Act, 1956 – Pensions

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Section 86: Pensions

The liability of the existing States in respect of pensions shall pass to, or be apportioned between, the successor States in accordance with the provisions contained in the Fifth Schedule.

Source: official text of The States Reorganisation Act, 1956 as published on India Code (PDF). All sections of the States Reorganisation Act, 1956.