(1) All property and assets within the Mizo District which are, immediately before the appointed day, vested in the existing State of Assam shall, as from that day, vest in the Union.
(2) Unless the Central Government otherwise directs, any stores, articles and other goods belonging to the existing State of Assam and situated outside the Mizo District immediately before the appointed day shall, as from that day, pass to the Union if such stores, articles or other goods are held for, or are relatable to, the administration of that District.
(3) All rights, liabilities and obligations of the existing State of Assam in relation to the Mizo District shall, as from the appointed day, be the rights, liabilities and obligations of the Union.
(4) The liability of the existing State of Assam to the Union in respect of the loans taken by that State from the Central Government shall be reduced by an amount which bears such proportion to the total public debt of that State immediately before the appointed day as the total expenditure on all capital works and other capital outlays incurred or deemed to have been incurred up to that day by the existing State of Assam in the Mizo District bears to the total expenditure on all capital works and other capital outlays incurred or deemed to have been incurred by the existing State of Assam up to the appointed day:
Provided that for the purposes of this sub-section the total public debt of the existing State of Assam shall exclude the public debt apportioned or apportionable to the autonomous State of Meghalaya under section 58 of the Assam Reorganisation (Meghalaya) Act, 1969 (55 of 1969), and the total expenditure on all capital works and other capital outlays incurred or deemed to have been incurred by the existing State of Assam shall exclude such outlays incurred or deemed to have been incurred for the purposes of the autonomous State under the said section.
(5) Nothing in this section shall apply to any amount which may be payable by the Union to the existing State of Assam in respect of the expenditure incurred by that State in connection with internal disturbances in the Mizo District.