Section 54(2) in The Bombay Reorganisation Act, 1960
(2)The public debt of the State of Bombay attributable to loans taken from the Central Government, the National Co-operative Development and Warehousing Board or the Khadi and Village industries Commission or from any other source for the express purpose of re-lending the same to a specific institution and outstanding immediately before the appointed day shall,-(a)if re-lent to any local body, body corporate or other institution in any local area, be the debt of the State in which the local area is included on the Appointed day; or(b)if re-lent to the Bombay State Electricity Board, the Bombay State Road Transport Corporation, or the Bombay Housing Board or any other institution which becomes an inter-State institution on the appointed day, be divided between the State of Maharashtra and Gujarat in the same proportion in which the assets of such body corporate or institution are divided under the provision of Part VII.
