Transfer of fragment to Government

(1) Any owner of a fragment may transfer it to the State Government on payment by the State Government of such compensation to persons possessing interest therein as the Collector may determine and thereupon the fragment shall vest absolutely in the State Government free from all encumbrances but no such fragment shall be transferred to the State Government unless it is first offered to the owner of a contiguous survey number or recognised sub-division of a survey number on payment of the compensation determined by the Collector as aforesaid and such owner has refused to purchase the fragment on payment of such compensation. (2) Any such fragment may be disposed of in accordance with the provisions of section 117B of the Bombay Land Revenue Code, 1879 (Bom. V of 1879) or section 158 of the Madhya Pradesh Land Revenue Code, 1954 (M. P. Act II of 1955) or as the case may be, may be disposed of as unoccupied land under the provisions of the Hyderabad Land Revenue Act, 1317 Fasli (Hyd. Act VIII of 1317F).