(1) Notwithstanding anything contained in any law for the time being in force, it shall be lawful for the Consolidation Officer, in consultation with the village committee,-
(a) to direct that any land specifically assigned for any public purpose shall cease to be so assigned and to assign any other land in its place;
(b) if in any area under consolidation no land is reserved for any public purpose including extension of the village sites, or if the land so reserved in inadequate, to assign other land for such requirements and for that purpose to effect a proportionate cut in all the holdings of the village.
(2) Where a proportionate cut in all the holdings of a village has been effected under sub-section (1), the State Government shall pay to every person affected thereby compensation in respect of the land recovered by such cut at the market value of the land at the date of the publication of the notification under section 15.
(3) Save as provided in sub-section (2), the amount of such compensation shall be determined by the Consolidation Officer, so far as practicable in accordance with the provisions of sub-section (1) of section 23 of the Land Acquisition Act, 1894].