The States Reorganisation Act,1956
Section 72. Reports relating to the accounts of certain States
(1) Where the whole or any part of the territory of an existing State has been transferred to another existing State or to a new State by the provisions of Part II, the reports of the Comptroller and Auditor-General of India referred to in clause (2) of article 151 relating to the accounts of that existing State in respect of any period prior to the appointed day, shall be submitted to the Governor of such State or of each of such States as the President may by order specify and the Governor shall thereupon cause them to be laid before the Legislature of that State.
(2) The President may by order-
(a) Declare any expenditure incurred out of the Consolidated Fund of Bombay, Madhya Pradesh or Punjab or of any Part B or Part C State on any service during the financial year 1955-56 or any earlier financial year in excess of the amount granted for that service and for that year as disclosed in the reports referred to in sub-section (1) to have been duly authorised, and
(b) Provide for any action to be taken on any matter arising out of the said reports.