(1) As soon as may be, after the commencement of this Act, the authorised officer may either suo motu or shall on an application made by an occupant of homestead, after making such enquiry as may be prescribed, determine the total extent of homestead in his occupation on the date of commencement of this Act, the extent of homestead in respect of which he is entitled to become owner under sub-section(1) of section 5, and the price payable therefor, and the amount of each installment of the price and the time within which it is payable.
(2) The price determined under sub-section (1) shall in no case exceed an amount which is equal to fifty times the land revenue payable in respect of the homestead and it shall be paid by the occupant of homestead at his option either in one lumpsum or in fifteen equal annual installments.
Explanation.- For the purposes of this section "land revenue" means the land revenue as defined in clause (f) of section 2 of the Telangana Land Revenue (Enhancement) Act, 1967 or as the case may be, as determined under that Act, together with the additional land revenue payable thereunder:
Provided that in the case of any land in respect of which no land revenue is payable, the land revenue in respect of such land shall be the same as the land revenue payable for similar land in the vicinity.
(3) (a) The authorised officer shall, after satisfying himself that the entire price in one lumpsum or the first installment thereof as determined by him under sub-section (1), has been deposited with the Government in such manner as may be prescribed, issue a certificate of ownership to the occupant of homestead concerned in such form and containing such particulars as may be prescribed; and on the issue of such certificate the homestead and the dwelling house shall vest in him absolutely free from all encumbrances with effect from the date of commencement of this Act;
(b) The certificate issued under clause (a) shall be conclusive evidence of the ownership in the land specified in the said certificate having been vested in the said occupant as against the land-owner, and all other persons claiming under him or having any interest therein;
(c) The price deposited by the occupant of homestead with the Government under clause (a) shall be paid to the land owner in such manner as may be prescribed.
(4) Where a certificate of ownership has been issued under sub-section (3) on the deposit by the occupant of homestead with the Government of only the first installment of the price, the homestead shall be deemed to be the security for the payment of the remaining installments.
(5) If the occupant of the homestead to whom a certificate of ownership has been issued under sub-section (3) fails to deposit any installment of the price within the time specified in the said certificate, the installment which has become due shall, on an application made in this regard by that land owner to the authorised officer, be recovered from the occupant of the homestead as an arrear of land revenue.