On the recommendation of the Collector, the State Government may cancel the allotment of land if the land is not used for the specified purpose in the stipulated time by the allottee or if he violates any of the conditions prescribed under these rules and on the cancellation of allotment, the land shall revert to the State Government free from all encumbrances without payment of any compensation in lieu of expenditure incurred or any development made on the said land. The person in possession of the said land after cancellation shall be deemed to be a trespasser under section 91 of the Act and shall also be liable to pay the Rs. 1000/- per hectare per month till the vacation of the land. Any amount remaining due against the allottee shall be recoverable as areas of land revenue.
Provided that no such order shall be passed without giving an opportunity of hearing to the lessee.