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Section 16: Commutation of rights
In case the Forest Settlement-officer finds it impossible, having due regard to the maintenance of the reserved forest, to make such settlement under section 15 as shall ensure the continued exercise of the said rights to the extent so admitted, he shall, subject to such rules as the 1[State Government] may make in this behalf, commute such rights, by the payment to such persons of a sum of money in lieu thereof, or by the grant of land, or in such other manner as he thinks fit.
Source: official text of The Indian Forest Act, 1927 as published on India Code (PDF). All sections of the Indian Forest Act, 1927.