(1) With effect from the date of vesting, all homesteads comprised in an estate and being in the possession of an Intermediary on the date of such vesting, such buildings or structures together with the lands on which they stand, other than any buildings used primarily as offices or kutcheries or rest houses for estate servants on duty as were in the possession of an Intermediary at the commencement of this Act and used as golas (other than golas used primarily for storing rent in kind) factories or mills for the purpose of trade, manufacture or commerce, or used for storing grains or keeping cattle or implements for the aforesaid purposes before the 1st day of January, 1946, shall notwithstanding anything contained in this Act, be deemed to be settled by the State Government with such Intermediary and with all the share-holders owning the estate, who shall be entitled to retain possession of such homesteads and of such buildings or structures together with the lands on which they stand, as tenants under the State Government subject to the payment of such fair and equitable ground rent as may be determined by the Collector in the prescribed manner :
Provided that where the Intermediaries have come to any settlement among themselves regarding the occupation of buildings and file a statement to that effect before the Collector, the building shall deemed to have been settled with the Intermediaries according to that settlement :
Provided further that homesteads in actual possession of the Intermediary shall be settled with him free of ground rent in those areas where no ground rent is charged under the existing law on homestead lands.
(2)  [ x x x x ]
(3) Notwithstanding anything contained in sub-section (1) where an Intermediary constructed a building or structure in his estate after the 1st day of January, 1946 and used it on the date of vesting for the purpose mentioned in sub-section (1), he may be entitled to retain possession of such building or structure together with the land on which it stands as a tenant under the State Government subject to the payment of ground rent as provided in sub-section (1) only if the Collector, after enquiry, is satisfied that it is constructed or used for a bona fide purpose and not with a view to defeat the provisions of Section 5 of this Act.
1. Omitted by the Orissa Estates Abolition (Amendment) Act, 1956 (Orissa Act 15 of 1956) s. 5
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