Restriction on permanent alienation or transfer of land acquired by protected tenant

(1) In the case of a permanent alienation or transfer by a protected tenant of any land in respect of which he has acquired the right of ownership under section 38 or section 38-D or section 38-E at the reasonable price determined by the Tribunal and more than eight years have not elapsed since the date of such acquisition, the Tahsildar may take over the land on payment to the protected tenant as compensation a sum equivalent to the reasonable price so determined.

Where any portion of the reasonable price still remains to be paid to the landholder whose interests were acquired by the protected tenant, such portion shall be paid to the landholder from the compensation payable under this section and the balance shall be paid to the protected tenant.

(2) The land so taken over shall vest in the Government free from all encumbrances and shall be under their management until it is disposed of in accordance with the rules made under this Act.

(3) Nothing contained in this section shall apply,-

(a) to a simple mortgage effected by the protected tenant; or

(b) to any gift made by the protected tenant in favour of his spouse or children: provided that any alienation or transfer of land made by the donee within a period of eight years from the date of the acquisition of the ownership by the protected tenant shall be subject to the restrictions contained in this section as if it was an alienation or transfer made by the protected tenant.