(1) Where in respect of a transfer or acquisition of any land made on or after the 15th day of June 1955 and before the commencement of the Amending Act, 1955, the Mamlatdar, suo motu or on the application of any person interested in such land, has reason to believe that such transfer or acquisition-
(a) was in contravention of section 63 or 64 as it stood before the commencement of the Amending Act, 1955, or
(b) is inconsistent with any of the provisions of this Act as amended by the Amending Act, 1955,
the Mamlatdar shall issue a notice in the prescribed form to the transferor, the transferee or the person acquiring such land, as the case may be, to show cause as to why the transfer or acquisition should not be declared to be invalid and shall hold an inquiry and decide whether the transfer or acquisition is or is not invalid :
[Provided that, where the transfer or acquisition was in favour of the tenant in possession of the land and the area of the land so transfered together with the area of other land, if any, cultivated personally by the tenant did not exceed the ceiling area, such trasfer or acquisition shall not be declared to be invalid if the tenant pays to the State Government a penalty of one rupee within such period not exceeding three months as the Mamlatdar may fix.]
(2) If after holding such inquiry the Mamlatdar declares the transfer or acquisition to be invalid, he shall direct that the land shall be restored to the person from whom it was acquired, and that the amount of consideration paid, if any, shall be recovered as an arrear of land revenue from the transferor and paid to the transferee and until the amount is so fully paid, the said amount shall be a charge on the land.
[(3) If the person to whom the land is directed to be restored refuses to take possession of the land, the Mamlatdar shall, subject to the provisions of section 63A, dispose of the land by sale in the perscribed manner in the following order of priority :-
(i) the tenant in actual possession of the land if he is not the transferee,
(ii) the persons or bodies in the order given in the priority list.
(4) The amount of price realised under sub-section (3), shall, subject to the payment of any encumbrances subsisting on the land, be paid to the [transferor].
(5) If the transferee refuses to accept the amount paid to him under sub-section (2) [or the transferor refuses to accept the amount paid to him under sub-section (4) the amount shall be forfeited to the State Government].]