The State of Arunachal Pradesh Act,1986
Section 34. Property, assets, rights, liabilities, obligations, etc
(1) All such property and assets, within the existing Union territory of Arunachal Pradesh as are held immediately before the appointed day by the Union for purpose of governance of that union territory shall, on and from that day, pass to the State, of Arunachal Pradesh unless the purpose for which such property and assets are so held are Union purpose:
Provided that the cash balances in the treasuries in the existing Union territory of Arunachal Pradesh before the appointed day shall, as from that day, vest in the State of Arunachal Pradesh.
(2) All rights, liabilities and obligations (other than those relatable to or in connection with, a Union purpose), whether arising out of any contract or otherwise, which are immediately before the appointed day,-
(a) The right, liabilities and obligations of the Central Government arising out of or in connection with, the governance of the existing Union territory of Arunachal Pradesh; or
(b) The rights liabilities and obligations of the Administrator of the existing Union territory of Arunachal Pradesh in his capacity as such of the Government of that Union territory,
Shall on and form the appointed day, be the rights liabilities and obligations of the Government of the State of Arunachal Pradesh
(3) The right to recover arrears of-
(a) Any tax or duty being a tax or duty enumerated in the State List in the Seventh Schedule to the Constitution; or
(b) Any duty referred to in article 268; or
(c) Any tax under the Central Sales Tax Act,1956,
Which have fallen due in the existing union territory of Arunachal Pradesh shall pass to the State of Arunachal Pradesh.
(4) The provision of this section shall not apply to, or in relation to,-
(a) Any institution, undertaking or project the expenditure in relation to which is, immediately before the appointed day, met from and out of the Consolidated Fund of India.
(b) Any property which has been placed by the Union at the disposal of the administration of the existing Union territory of Arunachal Pradesh subject to the conditions that the ownership thereof will continue to vest in the Union.
For the purpose of this section,-
(a) “Liability” includes liability in respect of any civil deposit, local fund deposit, charitable or other endowment, provident fund account pension or actionable wrong;
(b) “Union purpose” means the purpose of Government relatable to any of the matters mentioned in the Union List.