(1) Where in respect of the transfer of any land, the Collector suo moto or on the application of any person has reason to believe that such transfer is in contravention of section 3, he shall issue notice to the transferor and the transferee to show cause as to why the transfer should not be declared to be in contravention of said section 3, and shall also hold an inquiry to decide whether the transfer is in contravention of said section 3 or not.
(2) If, after holding such inquiry, the Collector declares that the transfer to be in contravention of section 3, the land in respect of which such contravention has taken place shall be deemed to be forfeited to the Government without the payment of any compensation.
(3) Notwithstanding anything contained in sub-sections (1) and (2) hereinabove, all transfers made in contravention of section 3 shall be void ab initio.