Second Schedule - Page 1135

1102 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES

“Provided that the President may by order direct that the provisions of this

article shall not apply to any State specified in the order.,’ ”

“That for clause (1) of article 258, the following clause be substituted :—

‘(1) Notwithstanding anything contained in this Chapter, the Government

of India may, subject to the provisions of clause (2) of this article, enter into an

agreement with the Government of a State for the time being specified in Part

III of the First Schedule with respect to—

(a) the levy and collection of any tax or duty leviable by the Government of

India in such State and for the distribution of the proceeds thereof otherwise

than in accordance with the provisions of this Chapter;

(b) the grant of any financial assistance by the Government of India to such

State in consequence of the loss of any revenue which that State used to derive

from any tax or duty leviable under this Constitution by the Government of

India or from any other sources;

(c) the contribution by such State in respect of any payment made by the

Government of India under clause (1) of article 267A of this Constitution, and

when an agreement is so entered into, the provisions of this Chapter shall in

relation to such State have effect subject to the terms of such agreement.’ ”

“That in chapter I of Part IX, after article 267, the following new article shall

be inserted, namely :—

‘267A. (1) Where under any covenant or agreement entered into by the Ruler

of any Indian State before the commencement of this Privy purse sums Constitution, the payment of any sums, free of tax, of Rulers. has been guaranteed or assured by the Government

of the Dominion of India to any Ruler of such State as Privy Purse—

(a) such sums shall be charged on, and paid out of, the Consolidated Fund

of India; and

(b) the sums so paid to any Ruler shall be exempt from all taxes on income.

(2) Where the territories of any such Indian State as aforesaid are comprised

within a State specified in Part I or Part III of the First Schedule there shall be

charged on, and paid out of, the Consolidated Fund of that State such contribution,

if any, in respect of the payments made by the Government of India under clause

(1) of this article and for such period as may, subject to any agreement entered into

in that behalf under clause (1) of article 258 of this Constitution, be determined

by order of the President,’ ”

“That after article 270, the following new article be inserted :—

‘270A. (1) As from the commencement of this Constitution—

(a) all assets relating to any of the matters enumerated in the Union List

vested immediately before such commencement, Succession to property in any Indian State corresponding to any State assets, liabilities and for the time obligations of being specified in Part obligations of Indian III of the First Schedule shall be vested in the States. Government of India, and

(b) all liabilities relating to any of the said matters of the Government of

any Indian State corresponding to any State for the time being specified in

Part III of the First Schedule shall be the liabilities of the Government of India,

subject to any agreement entered into in that behalf by the Government of India

with the Government of that State.

(2) As from the commencement of this Constitution the Government of each State

for the time being specified in Part III of the First Schedule shall be the successor

of the Government of the corresponding Indian State as regards all property,

assets, liabilities and obligations other than the assets and liabilities referred to

in clause (1) of this article.’ ”