(1) If at any time it appears to Government that-
(a) the Grama Sasan is not capable of efficiently managing any property specified in any declaration made under Section 3; or
(b) it is otherwise necessary in the public interest so to do; they may by order direct that the possession, management and control of such properties shall stand transferred to the Government:
Provided that on such order being made–
(a) the Grama Sasan shall be entitled to such compensation as may 4 be determined by Government in respect of improvements of a permanent nature, if any, affected by the Grama Sasan at its own cost; and
(b) the rights, if any, created in favour of any person by the Grama Sasan at any time during the period such Grama Sasan remained in possession shall stand extinguished and such person shall be entitled to compensation, so far as may be, in accordance with the provisions of Section 4 on an application made in that behalf within sixty days from the date of the said order.
(2) On and from the date of the order made under Sub-Section (I) the declaration under Section 3 shall cease to have effect and the income of such property after the said date shall be credited to the Consolidated Fund of the State.