Section 76(1) in The States Reorganisation Act, 1956
(1)Subject to the other provisions of this Part, all land and all stores, articles and other goods belonging to an existing State shall--(a)if within the existing State, pass to the successor State in which they are situated; or(b)if outside the existing State, pass to the successor State or if there be two or more successor States, to the principal successor State:Provided that where there are two or more successor States and the Central Government is of opinion that any goods or class of goods should be distributed among them otherwise than according to the situation of the goods, the Central Government may issue such directions as it thinks fit for a just and equitable distribution of the goods and the goods shall pass to the successor States accordingly.
