(1) Where any watan land resumed under section 3, is in the possession of an unauthorised holder, such holder may be summarily evicted therefrom by the Collector in accordance with the provisions of the relevant Code:
Provided that, where 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 on him, it may direct the Collector to regrant 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) Watan land which is not regranted under sub-section (1) shall be disposed of in accordance with the provisions of the relevant Code and the rules made thereunder, applicable to the disposal of unoccupied unalienated land.