Treatment of leases made by Panchayats.- (1) The Collector shall call for from

Panchayats in his district the record of cases, contracts or agreements entered into by the Panchayats in respect of any land vested in the Panchayats under the Punjab Village common Lands (Regulation) Act, 1961 (18 of 1961) and the rules made thereunder and examine such record himself as to the legality or proprietary of such leases, contracts or agreements;

1. (2) Where on examination of the record under sub-section (1) and after making such enquiry as he deems fit the Collector is satisfied that such leases, contracts or agreements are in accordance with the provisions of the said Act and rules, he shall pass orders declaring such leases, contracts or agreements having been made on behalf of the State Government 1[and will fix the lease money at the rate notified by the State Government from time to time. Such lease money shall be recovered by the Panchayat concerned from the lessee].
2. (3) Where on such examination and enquiry the Collector finds that a lease, contract or agreement has been entered into in contravention of any of the provisions of the said Act or the rules made thereunder or has been entered into as a result of fraud or concealment of facts or is detrimental to the interest of the estate right-holders, he shall cancel such a lease contract or agreement and such person shall be liable to ejectment under the provisions of section 150 of the Punjab Land Revenue Act 1887 (17 of 1887): Provided that no order under sub-section (2) and (3) of this section shall be passed by the Collector without affording an opportunity of being heard to the parties to the lease, contract or agreement.

¹ Inserted vide Section 4 of Act No.20 of 2001.