(1)Where in consequence of anything done in pursuance of Section 3, the owner of any land or property sustains loss or damage, he shall be entitled to such compensation as the District Collector may by order determine;

Provided that where the loss or damage was sustained by reason of the diminution of the supply of water to any land or to any tank or other source from which water is supplied to any land, compensation shall be payable only in such cases, and to such extent, as may be prescribed.

(2)No compensation shall be payable to any person under sub section (1), unless he has preferred to the District Collector, an application in that behalf setting forth the grounds of his claim, within three years from the date on which the loss or damage was sustained or such further time as the District Collector may think fit to allow.

(3)On receipt of an application under sub section (2) the District Collector shall hold an enquiry in the prescribed manner.

(4)The compensation payable to any person under this section shall be a lumpsum in all cases including those where the loss or damage sustained by him is a recurring one, and shall be determined by the District Collector in the prescribed manner.

(5)All compensation payable to any person under this section shall be paid by the State Government, and the total amount paid by way of compensation in consequence of any measures taken in pursuance of Section 3 in respect of any tank or such portion of the total amount aforesaid as the Government may specify may be recovered by the District Collector from the owners of the lands and other properties benefited by the measures taken, in such proportions and in accordance with such rules, as may be prescribed.