Section 54(3) in The Bombay Reorganisation Act, 1960
(3)The remaining public debt of the State of Bombay attributable to loans taken from the central Government, the Reserve Bank of India or any other body corporate and outstanding immediately before the appointed day shall be divided between the States of Maharashtra and Gujarat in proportion to the total expenditure on all capital works and other capital outlays incurred to deemed to have been incurred up to the appointed day in the territories included respectively in each of those States.Provided that for the purposes of such division, only the expenditure on assets for which capital accounts have been kept shall be taken into account.Explanation.- Where any expenditure on capital works or other capital outlays cannot be allocated between the territories included in the States of Maharashtra and Gujarat, such expenditure shall, for the purposes of this sub-section, be deemed to have been incurred in those territories according to the population ratio.
