(1) Where any land held on community service inam or under watan resumed under section 5 is in the possession of an unauthorised holder, such holder shall be summarily evicted therefrom by the Collector in accordance with the provisions of the Code :
Provided that, when in the case of any unauthorised holder, the State Government is of opinion that in view of the investment made by such holder in the development of the land, or in the non-agricultural use of the land, or otherwise, the eviction of such holder from the land will work undue hardship to him, it may direct the Collector to regrant the land to such holder on payment of such amount, and subject to such terms and conditions as the State Government may determine, and the Collector shall regrant the land to such holder accordingly.
(2) Where any land referred to in sub-section (1) is not regranted under that sub-section, it shall be disposed of in accordance with the provisions of the Code and the rules made thereunder, applicable to the disposal of unoccupied unalienated land.