Constitution of India, 1949
258.Power of the Union to confer powers, etc.,
on States in certain cases.-
(1) Notwithstanding anything in this
Constitution, the President may, with the consent of the Governor of a State,
entrust either conditionally or unconditionally to that Government or to its
officers functions in relation to any matter to which the executive power of
the Union extends.
(2) A law made by Parliament which applies in
any State may, notwithstanding that it relates to a matter with respect to
which the Legislature of the State has no power to make laws, confer powers and
impose duties, or authorize the conferring of powers and the imposition of
duties, upon the State or officers and authorities thereof.
(3) Where by virtue of this article powers and
duties have been conferred or imposed upon a State or officers or authorities
thereof, there shall be paid by the Government of India to the State such sum
as may be agreed, or, in default of agreement, as may be determined by an
arbitrator appointed by the Chief Justice of India, in respect of any extra
costs of administration incurred by the State in connection with the exercise
of those powers and duties.