Simplify the following text for a Grade 7 native English-speaking person.
Original: However , the city of Chandigarh was on the border , and was thus created into a union territory to serve as capital of both these states .
Simplified: Chandigarh , also called `` The Beautiful City '' , is a city in India . It is a union territory , because it is the capital of two states : Punjab and Haryana .