(1) where the claim relates to a right in or over any land other than the following rights:-
(a) a right of way;
(b) a right to water-course, or to use of water;
(c) a right of pasture; or
(d) a right to forest produce;
the Forest Settlement Officer shall, after considering the particulars of such claim, and the objections of the forest officer, if any, pass, an order, admitting or rejecting the same wholly or in part after recording the reasons therefor.
(2)(a) If any claim is admitted wholly or in part under sub-section (1), the Forest Settlement Officers may-
(i) accept the voluntary surrender of the right by the claimant or determine the amount of compensation payable for the surrender of the right of the claimant, as the case may be; or
(ii) direct the exclusion of the land from the limits of the proposed forest; or
(iii) acquire such land in the manner provided by the Land Acquisition Act, 1894 (hereinafter in this sub-section referred to as the said Act.)
(b) For the purpose of acquiring such land-
(i) the acquisition shall be deemed to be for a public purpose; and the notification under section 4 shall be deemed to be a notification under sub-section (1) of section 4 of the said Act;
(ii) the Forest Settlement Officer shall be deemed to be a Collector under the said Act, and the claimant shall be deemed to be a person interested and appearing before him in pursuance of a notice given under section 9 of the said Act;
(iii) the provisions of sections 5-A, 6,7 and 8 of the said Act shall not be applicable; and
(iv) the Forest Settlement Officer with the consent of the claimant, or the Court as defined in the said Act with the consent of the claimant and of the Government may, instead of money compensation, award compensation by the grant of any other land in exchange, by the grant of any right in or over land or partly by the grant of any land of any right therein and partly by the payment of money.