Section 27L(1) in The M.P. Bhumi Sudhar Yojana Adhiniyam, 1967
(1)If the holding of any owner brought under the scheme of consolidation is validity burdened with any lease, mortgage or other encumbrance, such lease, mortgage or other encumbrance shall be transferred and shall attach to the holding allotted to him under the scheme or to such part of it as the Consolidation Officer, subject to any rules that may be made under Section 27-M may have appointed in preparing the scheme; and thereupon, the lessee, mortgagee, or other encumbrances as the case may be, shall cease to have any right in or against the land from which the lease, mortgage or other encumbrances has been transferred.