(1)In case of neglect of, or willful disobedience to, any regulation or prohibition under Section 35, or if the purposes of any work to be constructed under that section so require, the State Government may, after notice in writing to the owner of such forest or land and after considering his objections, if any, place the same under the control of a forest officer, and may declare that all or any of the provisions of this Act relating to reserved forests shall apply to such forest or land.(2)The net profits, if any, arising from the management of such forest or land shall be paid to the said owner.(3)For the purpose of calculating the net profits, the total expenditure incurred on the working and management of the forest shall be adjusted against the total income from the working and management up to the date of account.(4)For the purpose of sub-section (3),-(a)the total income shall include the proceeds of confiscation or forfeitures for forest offences not committed by the owner in respect of the forest or the forest produce thereof after deducting from such proceeds the rewards, if any, paid to informers and officers out of such proceeds;(b)The total expenditure shall include--(i)an amount equal to twenty percent of total income in lieu of supervision charges payable to Government;(ii)the value of any forest produce removed or any advantage gained by the owner after the date on which such forest or land is taken under management by Government;(iii)cost of management incurred on the pay and allowances of the Forest Department staff; and(iv)such incidental expense as may be incurred by the forest officer including that incurred for the storage, transport and sale of the articles or forest produce forfeited or confiscated.
