Nothing contained in section 37 shall prevent the Government, if the person making the encroachment so makes request, to charge the said person a sum not exceeding five times the value of the land so encroached upon and to grant the land to the encroacher on such terms and conditions as the Government may impose subject to rules made in this behalf; and then to cause the said land to be entered in land records in the name of the such person as Occupant–Class II:
Provided that no Land shall be granted as aforesaid, unless a public notice of intention so to do is given, and any objections or suggestions which may be received before granting the land as aforesaid are considered. The expenses incurred in giving such public notice shall be paid by the person making the encroachment; and on his failure to do so on demand within a reasonable time, shall be recovered from him as an arrear of land revenue.]