The Acquired Territories (Merger) Act, 1960 was enacted on December 28, 1960 to unite into the States of West Bengal, Assam and Punjab some parts acquired according to the agreement concluded between the Indian Government and Pakistan Government. The Act provides that the acquired territories included in the three parts of the Schedule 1 shall be added in parts of States of West Bengal, Assam and Punjab from the appointed day. From the commencement of the appointed day, the related State Government shall call for the administration and organization of the acquired territories added in the State by taking into account of them or part of the district, administrative unit, police station or sub-division as provided in the order of the Government in the Official Gazette. The indication in the Delimitation of Parliamentary and Assembly Constitution Order of 1956 regarding the States mentioned above shall be interpreted as to add the acquired territory that is comprised in that state. It also refers to any district which shall consist of the district under the order of 1956.

All the sitting member of the Lok Sabha that corresponds to any constituency of the Parliament, the level of which can be amended according to the provisions of present enactment, shall be considered to have been elected from the beginning of the appointed day to the Lok Sabha by the amended constituency. Likewise, all the sitting members of the State Legislative Assembly of the above stated States that depicts any constituency of Assembly, the level that can be amended as per the Act, shall be considered to be chosen from the beginning of the appointed day to that Assembly by the constituency which is amended. This provision is similar to that of Legislative Council of the States of West Bengal, Punjab or West Bengal. Additionally, the entire properties along with other assets added with the acquired territory are bestowed in Pakistan or East or West Pakistan at once prior to the appointed day. This shall happen from the beginning of the appointed day, while the property as well as other assets is applicable to Central principles that are bestowed in the Union or else bestow in the concerned State where the acquired territories are added. The Central Government shall issue a certificate with the signature of the Secretary of the Government. This certificate shall be decisive to settle on the reason for which property or other assets are held are for the purposes of the Union.

Any legislation enacted by the Legislature of States given above before the appointed day for the income or expenses of funds from the Consolidated Fund of the State to pay off any expenditure in the financial year form 1960-1961 shall be enforced with regard to the acquired territories added to that state. The State Government is also authorized to spend the funds with regard to the territories from the funds approved by the enactment to be the payments for such State service. The concerned State Governor may sanction the fund from the Consolidated Fund of the State for any essential reason which does not exceed three months starting from the appointed day awaiting the authorization of such expenses by the State Legislature. The legislations that are enacted for acquired territories shall cease to operate in those territories and the general legislations operating in the related State where the acquired territories are added shall be in force in those territories as well. But the proviso states that things performed or act done prior to the appointed day according to any legislation enforced in the acquired territories shall be considered to have performed or done from the appointed day as per the analogous law.