(1) Notwithstanding anything in this Act, the Governor-Generalmay, with the consent of the Government of a Province or the Ruler of¹[a Federated] State, entrust either conditionally or unconditionally tothat Government or Ruler, or to their respective officers, functions in relation to any matter to which the executive authority of the [Federation] extends.

(2) An Act of the²[Federal] Legislature may, notwithstanding that it relates to a matter with respect to which a Provincial Legislature has no power to make laws, confer powers and impose duties³[or authorise the conferring of powers and the imposition of duties] upon a Province or officers and authorities thereof.

(3) An Act of the²[Federal] Legislature which extends to¹[a Federated] State may confer powers and impose duties³[or authorise the conferring of powers, and the imposition of duties] upon the State or officers and authorities thereof to be designated for the purpose by the Ruler. 4) Where by virtue of this section powers and duties have been conferred or imposed upon a Province or¹[Federated] State or officers or authorities thereof, there shall be paid by the²[Federation] to the Province or 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 Province or State in connection with the exercise of those powers and duties.

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1. Substituted, by the India (Provisional Constitution) Order, 1947., for the words 'an Acceding'.

2. Substituted, by the India (Provisional Constitution) Order, 1947., for the words 'Dominion'.

3. Inserted by the Government of India Act (Amendment) Act, 1939 (2 & 3 Geo. 6, Ch. 66), S. 1, (effective from 1-4-1937) see the India (Provisional Constitution) Order, 1947., Section 2(2).