(1) Where any permission to undertake any activity in the Flood plain has been refused to any person or where as a result or prohibition or restriction imposed on any person under this Act, such person suffers any damage, he shall be entitled to the payment of compensation not exceeding the difference between the value of the land as determined under section 23 or section 24 of the Land Acquisition Act, 1894 (Central Act, I of 1894) and the value which it would have had, had the permission for carrying on any activity had been granted or the prohibition or restriction had not been imposed.
(2) In determining the amount of compensation under sub-section (1) any restriction which the land is subjected to under any other law for the time being in force in regard to the right of the person claiming compensation to carry on any activity on the land or otherwise to the use of the land shall be taken into consideration.