Home › The States Reorganisation Act, 1956 › Part VIII – Apportionment of certain assets and liabilities of the union
Section 97: Loans and advances
The right to recover any loans or advances made before the appointed day to any local body, society, agriculturist or other person in an existing State shall belong to the successor State unless the loan or advance was made in connection with a Union purpose.
Source: official text of The States Reorganisation Act, 1956 as published on India Code (PDF). All sections of the States Reorganisation Act, 1956.