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MINES AND MINERALS (REGULATION AND DEVELOPMENT) ACT, 1948
53 of 1948
Received the assent of the Governor-General on the 8th September 1948 and is published in the Gazette of India, Extraordinary, Part IV, dated the 8th September 1948.
An Act to provide for the regulation of mines and oilfields and for the development of minerals. WHEREAS it is expedient in the public interest to provide for the regulation of mines and oilfields and for the development of minerals to the extent hereinafter specified; It is hereby enacted as follows :-
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
{I) This Act may be called the Mines and Minerals (Regulation and Development) Act, 1948.
(2) It extends to all the Provinces of India and also to any Acceding State for which the Central Legislature has for the time being the power to make laws as respects mines and oilfields and the development of minerals.
(3) It shall come into force on such date as the Central Government may, by notification in the official Gazette, appoint in this behalf.
SECTION 02: DECLARATION AS TO EXPEDIENCY OF CONTROL BY CENTRAL GOVERNMENT
-It is hereby declared that it is expedient in the public interest that the Central Government should take under its control the regulation of mines and oilfields and the development of minerals to the extent hereinafter provided.
SECTION 03: DEFINITIONS
- In this Act, unless there is anything repugnant in the subject or context,-
(a) the expression "lessor" and "lessee" respectively include a licensor and licensee;
(b) "mine" means any excavation for the purpose of searching for or obtaining minerals and includes an oil-well ;
(c) "minerals" include natural gas and petroleum ;
(d) "mining lease" means a lease granted for the purpose of searching for, winning, working, getting, making merchantable, carrying away or disposing of minerals or for purposes connected therewith., and includes an exploring or a prospecting license ;
(e) "oilfield" means any area where any operation for the purpose of obtaining natural gas and petroleum, crude oil, refined oil, partially refined oil and any of the products of petroleum in a liquid or solid state, is to be or is being carried on.
SECTION 04: NO MINING LEASE TO BE VALID UNLESS IT IS IN ACCORDANCE WITH THIS ACT
(l) No mining lease shall be granted after the commencement of this Act Otherwise than in accordance with the rules made under this Act,
(2) Any mining lease granted contrary to the provisions of sub-section (l) shall be void and of no effect.
SECTION 05: POWER TO MAKE RULES AS RESPECTS MINING LEASES
(i) The Central Government may, by notification in the official Gazette, make rules for regulating the grant of mining leases or for prohibiting the grant of such leases in respect of any mineral or in any area.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
(a) the manner in which, the minerals or areas in respect of which and the persons by whom, applications for mining leases may be made and the fees to be paid on any such applications ;
(b) the authority by which, the terms on which, and the conditions subject to which, mining leases may be granted ;
(c) the maximum or minimum area and the period for which any mining lease may be granted, and the terms on which leases in respect of contiguous areas may be amalgamated ;
(d) the fixing of the maximum and minimum rent payable by a lessee, whether the mine is worked or not.
SECTION 06: POWER TO MAKE RULES AS RESPECTS MINERAL DEVELOPMENT
(I) The Central Government may, by notification in the official Gazette, make rules for the conservation and development of minerals.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
(a) the regulation or prohibition of the mining, quarrying or digging for or the excavating or collecting of minerals from any mine or in any area;
(b) the manner in which and the persons by whom any mineral or any area as
respects which the grant of mining leases is prohibited may be developed or worked ;
(c) the development of any mineral resources in any area by prescribing or regulating the use of any engines, machinery or other equipment;
(d) the regulation of the drilling, redrilling, deepening, shutting down, plugging and abandoning of oilwells in an oilfield and for the limitation or prohibition of such operations and for the taking of remedial measures to prevent waste of or damage to oil;
(e) the regulation of the methods of producing oil in any oilfield, and the limitation or prohibition of such methods ;
(f) the compulsory notification of all new borings and shaft sinkings, and the preservation of boring records and specimens of cores of all new bore- holes;
(g) the taking of samples from mines and new bore-holes ;
(h) the regulation of the arrangements for the storage of minerals and the stocks thereof that may be kept by any person.;
(i) the levy and collection of royalties, fees or taxes in respect of minerals mined, quarried, excavated or collected ;
(j) the submission by the owners or lessees of mines of special or periodical returns and reports, and the forms in which and the authorities to whom such returns and reports shall be submitted.
SECTION 07: POWER TO MAKE RULES FOR MODIFICATION OF EXISTING LEASES
(I) The Central Government may, by notification in the official Gazette, make rules for the purpose of modifying or altering the terms and conditions of any mining lease granted prior to the commencement of this Act so as to bring such lease into conformity with the rules made under sections 5-and6-: Provided that any rules so made which provide for the matters mentioned in clause (c) of sub-section (2) shall not come into force until they have been approved, either with or without modifications, by the Central Legislature.
(2) The rules made under sub-section (I) shall provide-
(a) for giving previous notice of the modification or alteration proposed to be made thereunder to the lessee, and where the lessor is not the Central Government also to the lessor, and for affording them an opportunity of showing cause against the proposal;
(b) for the payment of compensation by the party who would be benefited by the proposed modification or alteration to the party whose rights under the existing lease would thereby be adversely affected ,and
(c) for the principles on which, the manner in which and the authority by which the said compensation shall be determined.
SECTION 08: DELEGATION
-The Central Government may, by notification in the official Gazette, direct that any power exercisable under this Act shall be exercised, subject to such conditions, if any, as may be specified therein by such officer or authority as may be specified in the direction.
SECTION 09: PENALTIES
(I) Any rule made under any of the provisions of this Act may provide that any contravention thereof shall be punishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.
(2) Whoever, after having been convicted of any offence referred to in sub-section (I), continues to commit such offence shall be punishable for each day after the date of the first conviction during which he continues so to offend., with fine which may extend to one hundred rupees.
SECTION 10: RULES TO BE LAID BEFORE THE LEGISLATURE
-All rules made under any of the provisions of this Act shall be laid before the Central Legislature as soon as may be after they are made.
SECTION 11: POWER OF INSPECTION
(I) For the purpose of ascertaining the position of the working, actual or prospective, of any mine or abandoned mine or for any other purpose mentioned in this Act or the rules made thereunder, any officer authorised by the Central Government in this behalf shall have the right to -
(a) enter and inspect any mine ;
(b) order the production of any document, book, register or record in the possession or power of any person having the control of or connected with, any mine;
(c) examine any person having the control of, or connected with, any mine.
(2) Any officer authorised by the Central Government under sub- section (I) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860-(XLV of 1860).
SECTION 12: RELAXATION OF RULES IN SPECIAL CASES
-The Central Government may, if satisfied that it is in the public interest so to do, authorise in any case the granting of any mining lease or the working of any mine on terms and conditions different from those laid down in the rules made under
SECTION 13: ACT TO BE BINDING ON THE CROWN
-The provisions of this Act shall be binding the Crown, whether in the right of the Dominion or oi
SECTION 14: PROTECTION OF ACTION TAKEN IN GOOD FAITH
No suit, prosecution or other legal proceeding whatever shall lie against any person for anything which is in good faith done or intended to be done under this Act.
THE MINING LEASES (MODIFICATION OF TERMS) RULES, 1956
S.R.O. 2062. dated the 4th September, 1956.
1-In exercise of the powers conferred by Sec. 7 of the Mines and Minerals (Regulation and Development) Act, 1948 (Llll of 1948), the Central Government hereby makes the following rules, namely:
RULE 1 SHORT TITLE AND COMMENCEMENT
-These rules may be called the Mining Lease (Modification of Terms) Rules. 1956,
RULE 2 DEFINITIONS
-In these rules unless the context otherwise requires,-
(a) "Act" means the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957):]
(b) "Controller" means a Controller of Mining Leases appointed under rule 3:
2[(c) "Existing mining lease" means a mining leases granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 and subsisting at such commencement, but does not include any such lease in respect of- (i) natural gas: (ii) petroleum: (iii) coal; or (iv) any minor mineral within the meaning of Cl. (c) of Sec. 3 of-the Act;]
(d) "lessee" means the lessee of an existing mining lease and includes sub- lessee or the successor-in-interest, of the lessee or sub-lessee, but does not include a contractor engaged by the lessee or sub-lessee for the purpose of working the mine or any part thereof, and the expressions "lessor" shall be construed accordingly:
3[(e) "Mineral Concession Rules" means the Mineral Concession Rules, 1960. made under Sec. 13of the Act .)
4[(f) "Mineral Conservation and Development Rules" means the Minerals Conservation and Development Rules. 1958made under Sec. 18of the Act:]
5 [(g) * *]
RULE 3 CONTROLLER OF MINING LEASES
-The Central Government may, by notification in the Official Gazette, appoint one or more Controllers of Mining Leases for the purposes of these rules and any such Controller may be appointed for any specified area or in respect of any specified class of mining leases.
RULE 4 EXISTING LEASES TO BE BROUGHT INTO CONFORMITY WITH THE MINERAL CONCESSION RULES. 1949
(1) As soon as may be after the commencement of these rules, the Controller shall by notice served in the manner specified in rule 15-call upon every lessor to show cause why the terms and conditions of the existing mining lease should not be brought into conformity with the Mineral Concession Rules.
(2) Where the parties or any of them appear before the Controller in pursuance of a notice issued under sub-rule (1), the Controller, after giving the parties or party, as the case may be. a reasonable opportunity of being heard shall issue an order making such modifications and alterations in the terms and conditions of the existing mining lease as may be necessary for the purpose of bringing it into conformity with the Mineral Concession Rules.
(3) Where none of the parties appears before the Controller in pursuance of a notice issued under sub-rule (1), the existing mining lease shall be deemed to have been so modified or altered as to conform to the6[Mineral Conservation and Development Rules].
RULE 5 LESSEES TO SUBMIT RETURNS
(1) Every lessee shall submit to the Controller within sixty days of the6 [date of a notification published by the Controller in the Gazette of India, in this behalf] a return in the form specified In the Schedule:3[Provided that the Controller may in any particular case extend the said period of sixty days by such period or periods, as he deems fit if he is satisfied that the lessee was prevented by sufficient cause from submitting the return in time. Provided further that the Central Government may In special circumstances further extend the said period by such period as it deems fit.]
(2) Every such return shall be accompanied by a true copy of the existing mining lease of which the return relates.
RULE 6 MODIFICATION OF THE TERMS OF EXISTING MINING LEASES
-The Controller shall in respect of every existing mining lease prepare a statement and conditions of the lease so as to bring the lease into conformity with8[the Act and] the Mineral Concession Rules.
((2)to(9) * * * *]
5[1(9A) * * * *]
(10) Where the Controller proposes a reduction in the area covered by an existing mining lease, the Controller shall observe the following principles :
(a) in any case where there is an area which is not being worked and which is not contiguous to any area which is being worked, the Controller shall exclude that area;
(b) in any other case. the Controller, shall exclude such area as he may determine having regard to the following matters, namely :
(i) the compactness of the remaining area and configuration appropriate for working the mine in a workmanlike manner :
(ii) the conservation of minerals.
(11) The Controller shall give notice of the proposed modifications or alteration to the lessee and the lessor and shall call upon them to show cause why such modifications and alterations should not be made.
(12) Where the party or any of them appear before the Controller in pursuance of notice issued under sub-rule (1), the Controller, after giving the parties or party, as the case may be. an opportunity of being heard and after making such further enquiry as he may deem fit,10[and In any case to which sub-rule (10) applies after consulting the State Government, may] make an order that the existing mining lease shall stand modified in the manner specified in the order.
"7[(13) If any lessee fails to furnish a return within the time or extended time under sub-rule (1) ofrule 5-. or fails to appear on the date fixed for hearing or to supply such information as may be required by the Controller under these rules, the Controller may proceed ex parte against him and on the basis of information available with him proceed to modify the terms and conditions of the mining lease so as to bring it into conformity with the Mineral Concession Rules in accordance with the provisions of these rules, and the lease shall stand modified in accordance with the order passed by him.]
" 12[(14) * * * *]
RULE 7 POWER OF REVISION OF THE CENTRAL GOVERNMENT
(1) The Central Government may of its own motion or on application of any Interested person call for the record of any proceedings In which the Controller has passed any order under sub-rule (2) of rule 4-or sub-rule (12) or sub-rule (13) of rule 6-15[or in which the tribunal has passed by order Cl. (b) of sub-rule (1) of rule 10) for the purpose of satisfying itself as to the legality or propriety of any such order and may pass such order in relation thereto as it thinks fit.
(2) Every application under this rule for the revisions of any such order of Controller shall be made within sixty days of the date of the order sought to be revised: Provided that the Centra] Government may entertain any such application after the expiry of the said period of sixty days If it is satisfied that the applicant was prevented by sufficient cause from filing the application In time.
(3) The Central Government, may, pending its final decision in the matter under this rule, suspend the operation of any order passed, by the Controller under sub-rule (2) of rule 4-or sub-rule (12) or sub-rule (13) of rule 6-.
RULE 8 FURNISHING OF COPIES OF FINAL ORDER AND PUBLICATION IN GAZETTE
-A copy of every order made under these rules modifying or altering the terms and conditions of an existing mining lease shall be furnished free of cost to the lessee and lessor and to any other interested person, and shall also be published In the Official Gazette of the State in which the mine to which such lease relates is situated.
RULE 9 PAYMENT OF COMPENSATION IN CERTAIN CASES
-16[Where the area of an existing mining lease is reduced, there shall be paid to the lessee] compensation, the amount of which shall be determined In the manner and in accordance with the principles set out in rule 10-: Provided that no such compensation shall be payable unless the Controller is satisfied that the transaction relating to the existing mining lease was a bond fide one and was entered into the ordinary course of business.
RULE 10 PRINCIPLES AND MANNER OF DETERMINING COMPENSATION
(1) The amount of compensation payable under rule 9-shall be determined in the following manner:
(a) by agreement between the parties ;
17 [(b)
(i) if there is no such agreement, the amount of compensation shall be determined by the Controller holding such inquiry as he may deem fit:
(ii) if the amount so determined by the Controller is not acceptable to the person to whom the compensation is payable, the question shall on an application made within sixty days from the date of the Controller's order, be referred for decision to a Tribunal constituted by the Central Government shall consist of a single member who is, or has been, or Is qualified for appointment as a Judge of a High Court and the decision of the Tribunal shall be final subject to the provisions of Sec. 3-of the Act.]
(2) In determining the compensation payable under this rule, the Controller and the Tribunal shall have regard to the following matters, namely :
(i) any reasonable and bonafide expenditure incurred by the lessee on any area excluded under rule 6-; that is to say-
(a) the proportionate cost of obtaining the lease attributable to that area;
(b) the expenditure or proportionate expenditure, if any, incurred in undertaking any prospecting operations In the area (i) for the preparation of maps. charts and other documents relating to the area, (ii) for the collection of cores or other mineral samples and due analysis thereof, (iii) for the preparation of any other relevant records of material, which the holder may produce before the Controller or the Tribunal, as the case may be ,
(c) the expenditure or proportionate expenditure, if any, incurred In constructing roads
or other essential works in the area, where such roads or works are in existence in usable condition:
(d) the expenditure or proportionate expenditure on any other operation carried out in that area and necessary for prospecting :
(ii) no compensation shall be payable in respect of the reduction of the18 [period) of the lease or any modification in the amount of royalty.
(3) In addition to the amount of expenditure referred to in sub-clause (i) of subrule (2). there shall in every case be paid In respect of the first five years since the expenditure was incurred, a sum equivalent to five per cent. of such expenditure in respect of each such year plus a sum equivalent to four per cent of such expenditure in respect of each additional year after the said period of five years: Provided that in no case shall the total sum payable under this sub-rule exceed 50 per cent. of the total amount of such expenditure. Explanation.-In computing the number of years for the purpose of this sub- rule, any part of a year less than six months shall be ignored and any part of a year exceeding six months shall be reckoned as one year.
(4) The compensation determined with reference to Cl. (b) of sub-rules (2) (i) shall not be paid unless the party to whom the compensation is payable has delivered to the party by whom the compensation is payable all maps charts and other document referred to in that clause.
(5) Where there is any dispute as to the person or persons who are entitled to the compensation, the Controller or the Tribunal as the case may be, shall decide the dispute, and if it is found that more than one person are entitled to compensation the amount of the compensation shall be apportioned among such persons.
RULE 11 INTEREST ON COMPENSATION
-Any compensation payable under these rules shall be due as from the date of the final order made under rule 10-and shall carry interest at the rate of 2« per cent. per annum from the date of such order.
RULE 12 TRIBUNAL AND CONTROLLERS TO HAVE CERTAIN POWERS OF CIVIL COURT
-The tribunal constituted under rule 10-19[and the Controllers of Mining leases appointed under rule 31 shall for the purpose of determining compensation under these rules have all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908 (Act 5 of 1908)-] in respect of the matters namely :-
(a] summoning and enforcing the attendance of any person and examining him on oath :
(b) requiring the discovery and production of any documents', (c) requiring of evidence on affidavit : (d) requisitioning any public record from any court or office : (e) issuing commission for examination of witnesses.
RULE 12A POWER TO RECTIFY APPARENT MISTAKES
-Any clerical or arithmetical mistake in any order passed by the Controller under these rules and errors arising therein from accidental slip or commission may, within two months from the date of the order, be corrected by the Controller : Provided that no order prejudicial to any person shall be made under this rule unless such person has been given a reasonable opportunity of slating his case.]
RULE 13 POWER OF CONTROLLER TO OBTAIN INFORMATION
-The Controller may for the purpose of exercising the powers, conferred upon him by these rules, by order require a lessee or lessor-
(a) to produce before him any book of account or other documents which may be in his possession or power relating to an existing mining lease]:
(b) to furnish to him such maps and charts relating to an existing mining lease as may be specified In the order : and
(c) to give any information In his possession relating to an existing mining lease.
RULE 14
* * * * *]
RULE 15 SERVICE OF NOTICE OR ORDER
(i)Every notice or order issued or made under these rules shall-
(a) in the case of any notice or order of a general nature or affecting a class of persons be published in the Gazette of India;
(b) in the case of any notice or order affecting any corporation or firm be served in the manner provided for the service of summons in rule 2-of Or. XXIX or rule 3-of Or. XXX. as the case may be in the First Schedule to the Code of Civil Procedure, 1908 (Act 5 of 1908)-. ^lfit cannot be served in such manner by publication in the Official Gazette, of the State and in at least one newspaper circulated in the district, where the mine, the terms and conditions of lease whereof are proposed to be altered or modified, is situated] : and
(c) in the case of any notice or order affecting an Individual person (not being a corporation or firm) be served on such person,-
d) by delivering or tendering it to that person, or
(ii) if it cannot be so delivered or tendered, by delivering or tendering It to any officer of such person or any adult male member of the family of such person or by affixing a copy thereof on the outer door or on some conspicuous part of the premises in which that person is known to have last resided or carried on business or personally worked for gain: or
(iii) by registered post :[or]
[(iv) if it cannot be served in the manner laid down in sub-clause (i) or sub-clause (ii) or sub-clause (iii). by publication in the Official Gazette of the State and in at least one newspaper circulating in the district, where the mine, the terms and conditions of the lease where are proposed to be altered or modified, is situated].
RULE 16 MODE OF RECOVERY OF COMPENSATION
-The amount of any compensation payable under these rules may on a certificate issued by the Controller, be recovered in the same manner as an arrear of land revenue: Provided that where any such compensation is payable by the Government, the amount of such compensation may, on application made to the civil court having Jurisdiction, be recovered as If that court had passed a decree for such amount.
RULE 17
(1) If any Person-
(a) refuses or fails-
(i) to furnish a return as provided in rule. 5-: or
(ii) to restore possession of any mine in accordance with the terms and conditions of an existing mining lease as modified under these rules: or
25[(iii) to produce any books of accounts or other documents or furnish maps and charts or give any information in compliance with an order made under rule 13-;] or
(b) obstructs the lawful exercise of any power conferred by these rules, he shall be punishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.
(2) If any person makes any statement in any return furnished under rule 5-. which he either knows, or has reason to believe to be false which he does not believe to be true, he shall be punishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with.
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