Why union territories have been created
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Union territories of India have special rights and status due to their constitutional formation and development. ... As union territories are directly ruled by the union government, some union territories get more funds from the union government than entitled on per capita and backwardness basis when compared to states.
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The concept of a 'Union Territory' is unique to India. First introduced in the States Reorganisation Act of 1956, the term refers to those territories that were too small to be independent or too significantly different (economically, culturally or geographically) to be merged with the states that surrounded them.
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