(2)The fair rent shall be,-(a)in the case of nilams, 50 per cent of the contract rent, or 75 per cent of the fair rent determined under any law in force immediately before the 21st January, 1961, or the rent calculated at the rates specified in schedule III applicable to the class of lands comprised in the holding, whichever is less:(b)in the case of other lands, 75 per cent of the contract rent, or 75 per cent of the fair rent determined under any law in force immediately before the 21st January, 1961, or the rent calculated at the rates specified in schedule Ill applicable to the class of lands comprised in the holding, whichever is less:Provided that the tenant may, by notice sent to the landlord by registered post, opt to pay -(i)in the case of any nilam, 50 per cent of the contract rent, or 75 per cent of the fair rent determined under any law in force immediately before the 21st January, 1961, or the rent calculated at the rates specified in schedule III applicable to the class of lands comprised in the holding;(ii)in the case of other lands, 75 per cent of the contract rent, or the fair rent determined under any law in force immediately before the 21st January, 1961, or the rent calculated at the rates specified in scheduled III applicable to the class of lands comprised in the holding;and where the tenant has so opted, such rent shall be deemed to be the fair rent for all purposes of this Act with effect from the beginning of the agricultural year in which such notice was sent to the landlord.Explanation I. - Where in the case of a holding consisting of nilam and lands other than nilam, the rent for the nilam and the other lands is not separately specified in the contract of tenancy, the contract rent for the purposes of this Sub-section in respect of the nilam and the other lands shall be determined on the basis of the normal produce from the nilam and the normal produce from the lands other than nilam.[Explanation II. [Inserted by Act No. 27 of 1979.] - Where in respect of a holding there is a stipulation in the contract of tenancy for the payment of interest by the transferor to the transferee, or for the payment by the transferee of land tax due to the Government or any tax or cess due to a local authority, the contract rent of that holding shall, for the purposes of this Section, be calculated after deducting such interest, tax and cess.Explanation III. - For the purposes of this Section "nilam" includes a nilam converted into garden by the tenant's labour.]
