Withdrawal of an unlawful administrative act

(1) An unlawful administrative act may, even after it has become unchallengeable, be withdrawn in whole or in part, with effect for the future or for the past. An administrative act that has established or confirmed a right or a legally significant advantage (beneficial administrative act) may be withdrawn only subject to the restrictions of subsections (2) to (4).
(2) An unlawful administrative act that grants a one-off or recurring monetary benefit, or a divisible benefit in kind, or that is a condition for this, may not be withdrawn insofar as the beneficiary has relied on the continuance of the administrative act and his or her reliance, weighed against the public interest in withdrawal,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 granted, 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 where he or she 1. obtained the administrative act by fraudulent misrepresentation, threat or bribery; 2. obtained the administrative act by particulars that were, in a material respect, incorrect or incomplete; 3. knew of the unlawfulness of the administrative act, or did not know of it as a result of gross negligence. In the cases of the third sentence, the administrative act is as a rule withdrawn with effect for the past.
(3) Where an unlawful administrative act not falling under subsection (2) is withdrawn, the authority must, on application, compensate the person concerned for the financial disadvantage that this person suffers through having relied on the continuance of the administrative act, insofar as his or her reliance, weighed against the public interest, is worthy of protection. Subsection (2), third sentence applies. The financial disadvantage is, however, not to be compensated beyond the amount of the interest that the person concerned has in the continuance of the administrative act. The financial disadvantage to be compensated is fixed by the authority. The claim may be asserted only within one year; the period begins as soon as the authority has drawn the person concerned's attention to it.
(4) Where the authority learns of facts that justify the withdrawal of an unlawful administrative act, withdrawal is permissible only within one year from the point in time of that knowledge. This does not apply in the case of subsection (2), third sentence, no. 1.
(5) After the administrative act has become unchallengeable, the authority competent under section 3 decides on the withdrawal; this applies even where the administrative act to be withdrawn was issued by another authority.