How are costs related to carrying out directions under clause (2) or clause (3) managed between the Government of India and a State?
When carrying out directions given to a State under clause (2) or clause (3), if costs are incurred that exceed those which would have been incurred in the normal duties of the State, then such extra costs will be paid by the Government of India to the State. The amount to be paid is determined through an agreement between the parties involved. If no agreement can be reached, an arbitrator appointed by the Chief Justice of India will decide on the payment amount.