Withdrawal of an unlawful beneficial administrative act

(1) Insofar as an administrative act that has established or confirmed a right or a legally significant advantage (beneficial administrative act) is unlawful, it may, even after it has become unchallengeable, be withdrawn in whole or in part with effect for the future or for the past only subject to the restrictions of subsections (2) to (4).
(2) An unlawful beneficial administrative act may not be withdrawn insofar as the beneficiary has relied on the continuance of the administrative act and his or her reliance, weighed against the public interest in withdrawal, is worthy of protection. Reliance is as a rule worthy of protection where the beneficiary has consumed benefits rendered, or has made a disposition of assets that he or she can no longer reverse, or can reverse only at unreasonable disadvantage. The beneficiary may not invoke reliance insofar as 1. he or she obtained the administrative act by fraudulent misrepresentation, threat or bribery; 2. the administrative act rests on particulars that the beneficiary made, intentionally or through gross negligence, incorrect or incomplete in a material respect; or 3. he or she knew of the unlawfulness of the administrative act, or did not know of it as a result of gross negligence; gross negligence exists where the beneficiary has breached the required care to a particularly serious degree.
(3) An unlawful beneficial administrative act with continuing effect may be withdrawn under subsection (2) only up to the expiry of two years after its notification. The first sentence does not apply where grounds for reopening exist corresponding to section 580 of the Code of Civil Procedure. Up to the expiry of ten years after its notification, an unlawful beneficial administrative act with continuing effect may be withdrawn under subsection (2) where 1. the conditions of subsection (2), third sentence, no. 2 or 3 are met; or 2. the administrative act was issued with an admissible reservation of revocation. In the cases of the third sentence, an administrative act concerning a recurring monetary benefit may also be withdrawn after the expiry of the period of ten years, where that monetary benefit was paid at least until the commencement of the administrative procedure on the withdrawal. Where the period of ten years had already expired on 15 April 1998, the fourth sentence applies with the proviso that the administrative act is set aside only with effect for the future.
(4) Only in the cases of subsection (2), third sentence and subsection (3), second sentence is the administrative act withdrawn with effect for the past. The authority must do this within one year of obtaining knowledge of the facts that justify the withdrawal of an unlawful beneficial administrative act for the past.
(5) Section 44(3) applies correspondingly.