(1) Every person who immediately before the appointed day is serving in connection with the affairs of the Union under the administrative control of the Administrator of the existing Union territory of Arunachal Pradesh shall, unless otherwise directed by an order of the Central Government, be deemed to have been allocated for service as from that day in connection with the affairs of the State of Arunachal Pradesh:
     Provided that no directions shall be issued under this section after the expiry of a period of one year from the appointed day.
     (2) The provisions of this section shall not apply in relation to persons to whom the provisions of section 35 apply.