(1) Where any vested property, in respect of which no income is received by the Custodian, is under occupation of a person or persons or a company, the Custodian may serve a notice directing them to enter into an agreement with the Custodian in Form 5 and such occupant or occupants or the company, shall pay all arrears as may be determined by the District authority with effect from the date of occupation of the property or the date of vesting, whichever is earlier:
Provided that where the occupant of the vested property is unwilling to enter into an agreement, the Custodian may initiate process for the eviction of the occupant and take control over the property in accordance and in the manner provided in the Act and in these rules:
Provided further that where the share of the enemy in such property exceeds one-half of the whole property, the control over the whole property may be taken over by the Custodian.
(2) Where the vested property is jointly owned by an enemy and an Indian National or is an undivided share in joint property, the income and expenses in respect of such property shall be apportioned for its preservation, management and control.
(3) All vested property which is unoccupied at the time of taking over of control by the Custodian or has become vacant due to eviction under this rule shall be leased out through open auction to the highest bidder.
(4) The Custodian shall prepare a list of all enemy properties out of which any income is received or receivable, in Annexure III which shall be reviewed and updated from time to time.
Explanation.— For the purposes of this rule, "date of vesting" means the date of vesting of any property declared as enemy property in the Custodian which shall be with effect from 10th September, 1965, as notified under the notification of the Government of India in the Ministry of Commerce number 12/2/65- E.Pry. dated the 10th September, 1965.