(1) Where any land used for agricultural purposes has been converted to non-agricultural purpose, the holder of such land shall, subject to the provisions of sub-section (3) of section 6 and the other provisions of this section, be entitled to keep the land.
(2) Where the land converted was at the time of conversion in the occupation of a tenant and the converted land has not been put to non-agricultural use for which it was converted, such land shall, subject to the other provisions of this Act, be registered in the name of the tenant :
Provided that if the State Government is satisfied that the holder had done everything possible to put such land into non-agricultural use but could not do so for reasons beyond his control, it may, by order in writing permit the holder to retain the land :
Provided further that, in the case referred to in the preceding proviso, the tenant shall,-
(i) notwithstanding anything in the Karnataka Land Reforms Act, 1961 be treated as a displaced tenant for purposes of section 77 of that Act;
(ii) where the conversion was on or after the 11th September, 1973, be paid an amount equal to one hundred times the land revenue on the land of which he was a tenant, the said amount being paid to him from out of the amount payable under this Act to the Inamdar.