Where, in any case, the State Government, after giving the Governing Council of the educational institution concerned an opportunity to make its representation in regard to the matter, is satisfied that the provisions of sub-section (1) of section 60 have been contravened in respect of any land or building it may, by order,-
(a) if the land or the land together with the building standing thereon belonged to the State Government and was transferred by it for the purposes of the educational institution, direct the Deputy Commissioner to take possession of the land or land together with the building standing thereon as the case may be, or at their option, direct the Governing Council to pay to it in full, the current market value of the land or of the land together with that of the building where it was also transferred by it and also the amount of the grant, if any, made by the State Government for improving the land or altering or constructing the building; and
(b) if the land or the building, if any, standing thereon does not belong to the State Government, direct the Governing Council to repay in full the grant made by the State Government with interest from the date of the contravention, at such rate as may be notified by the State Government.