Section 16: Khatedars' tenancies

(1) The scheme prepared by the consolidation officer may provide for the distribution of land held in Khatedari rights between the Khatedar tenants and the person from whom they hold (called the landholder) in such proportion as may be agreed upon between the parties. (2) When the scheme is finally sanctioned under section 20, than notwithstanding anything to the contrary contained in any law for the time being in force, Khatedari rights in the land allotted to the landholder shall be deemed to be extinguished and- (i) in places where full proprietary rights in land exist, the land so allotted to the Khatedar tenant and the landholder shall be held by each of them respectively in such right, and (ii) where such rights do not exist, compensation shall be payable for the extension of Khatedari rights, if any, in the portion of the land allotted to the landholder at the rate of fifteen times the annual rent payable in respect thereof.