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As per Article 257(4), if States incur extra costs while carrying out Union directions on communication or railway protection, the:

AUnion is not liable to reimburse

BExtra costs shall be shared equally by Union and State

CCosts must be borne only by the concerned State Government

DUnion must reimburse as agreed, or as determined by an arbitrator appointed by the Chief Justice of India

Answer:

D. Union must reimburse as agreed, or as determined by an arbitrator appointed by the Chief Justice of India

Read Explanation:

  • Article 257(4) provides that any extra costs incurred by a State due to Union directions (beyond its normal duties) must be compensated by the Government of India. In case of dispute, an arbitrator appointed by the Chief Justice of India decides.


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