Imposition of penalty and mode of recovery of arrears.

(1) Where any transferee makes any default in the payment of any consideration money or instalment thereof or any other amount on account of the transfer of any site or building under section 3 or in respect of any lease, or where any transferee or occupier makes any default in the payment of any fee or tax levied under section 7, then, in addition to the amount of arrears, a sum shall be recovered from the transferee or occupier, as the case may be, by way of penalty, a sum not exceeding the amount payable under sub-section (1) may be recovered from the transferee or occupier, as the case may be, in the same manner as an arrear of land revenue.