(1) Where any excess land of a landowner vests in the Government, there shall be paid by the Government to the landowner compensation, subject to the provisions of sub-section (2), of an amount equal to twenty times the net annual income from such land.
Explanation.-For the purposes of sub-section (1), the net annual income from any land shall be deemed to be one-fifth of the value of the average yearly gross produce of the land, calculated in such manner as may be prescribed.
(2) Where such excess land or any part thereof is in the possession of a tenant, the compensation payable under sub-section (1) in respect of the land shall be apportioned between the landowner and the tenant in such proportion as may be determined by the competent authority in the prescribed manner, having regard to their respective shares in the net income from such land.
(3) In addition to the compensation payable in respect of any excess land under sub-section (1), there shall also be paid compensation in respect of any structure of building constructed on such land and any trees planted thereon, and such compensation shall be determined by the competent authority in the prescribed manner, having regard to the market value of any structure or building or the value of such trees, and such compensation shall be paid to the person who has constructed the structure or building or planted the trees.
(4) Where any excess land in respect of which compensation is payable is subject to any mortgage or other encumbrance, the amount due under the mortgage or other encumbrance in respect of such excess land, or where a transfer of any excess land is void by virtue of sub-section (4) of section 140, the consideration money paid by the transferee in respect of such excess land, shall be a charge on the compensation payable in respect of the excess land to the person who has created the mortgage or encumbrance or, as the case may be, to the transferor.
(5) Where a tenant acquires the rights of a landowner in respect of any excess land, the compensation payable by him in respect of that land shall be equal to the amount which the landowner would have been paid as compensation under sub-section (2) or sub-section (3) if the land had vested in the Government; and the amount shall, in the first instance, be paid to the landowner by the Government and shall be recovered from the tenant in such manner as may be prescribed.
(6) Where a mortgagee in possession acquires the rights of the mortgagor in respect of any excess land under sub-section (3) of section 141, the compensation payable by the mortgagee in respect of that land shall be such sum of money, if any, as may be due to the mortgagor after setting off the mortgage debt against the market value of such excess land.
(7) Where any excess land of a religious or charitable institution vests in the Government, such institution shall, in lieu of compensation payable under sub-section (1) or sub-section (2) or sub-section (3), be paid an annuity equal to the net annual income of the excess land and such net annual income shall be determined by the competent authority in the prescribed manner.
(8) The competent authority shall, after holding an inquiry in the prescribed manner, make an order determining the amount of compensation payable to any person under this section.