(1) Subject to the provisions of sub-section (3), every holder of a minor inam shall, with effect from and on the appointed date, be entitled to be registered as an occupant of all lands which immediately before the appointed date were included in his holding, other than,-
(i) communal lands, un-cultivated lands, waste lands, gomal lands, forest lands, tank beds, mines, quarries, rivers, streams, tanks and irrigation works;
(ii) lands in respect of which any person is entitled to be registered under section 4 or section 5 or section 7 or is entitled to be continued as a tenant under section 6 and also the extent of land in respect of which the said person is not entitled to be registered in view of the restrictions in section 10 or section 25 as the case may be; and
(iii) lands upon which buildings owned by any person other than the holder of the minor inam have been erected.
(2) Subject to the provisions of sub-section (3) every building situated within the limits of the minor inam and which was owned immediately before the appointed date by the holder of the minor inam shall, with effect from and on the appointed date, vest in the holder of the minor inam.
(3) Notwithstanding anything contained in any law for the time being in force, the holder of a minor inam shall not be entitled to alienate the lands or the building vesting in him under sub-section (1) or sub-section (2), except by way of a simple mortgage to a society or a bank registered under the 1[Karnataka]1 Co-operative Societies Act, 1959 (1[Karnataka]1 Act 11 of 1959) or to the State Bank of India and its subsidiaries or a bank specified in column (2) of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970) or to a company or a corporation owned by or in which not less than fifty percent of the share capital is held by the State Government or the Central Government or partly by the State 9 Government and partly by the Central Government and which has been set up with a view to provide agricultural credit to cultivators:
1. Substituted by Act 53 of 1976 w.e.f. 18.8.1976
Provided that nothing in this sub-section shall apply to any alienation effected with the previous sanction of the prescribed authority.