MINERAL CONCESSION RULES, 1960

CHAPTER V

Procedure for obtaining a Prosecuting Licence or Mining Lease in respect of Land in which the Minerals vest in a person other than the Government

41. Applicability of this chapter. – The provisions of this chapter shall apply only to the grant of prospecting licences and mining leases in respect of land in which the minerals vest exclusively in a person other than the Government .

42. Restrictions on the grant of prospecting licence and mining lease. – (1) No prospecting licence or mining lease shall be granted to any person unless he has filed an affidavit stating that he has –

(i) filed up-to-date income tax returns ;

(ii) paid the income tax assessed on him , and

(iii) paid the income tax on the basis of self-assessment as provided in the Income Tax Act, 1961 (43 of 1961).

(2) Except with the previous approval of the Central Government, no prospecting licence or mining lease shall be granted in respect of any mineral specified in the First Schedule to the Act.

43. Renewal of prospecting licence. – Omitted .

44. Conditions of prospecting licence. – Every prospecting licence shall be subject to the following conditions :

(i) the licensee shall pay the grantor such prospecting fee as may be agreed upon, being not less than one rupees  and not more than ten rupees per hectare of the land covered by the licence for each year or a part of the year of the period for which a licence is granted or renewed ;

(ii) in the case of minerals other than gold, silver, precious stones or mica, the licensee shall not win or carry away the minerals for commercial purposes ;

Provided that the licensee may win or carry away for purposes other than the commercial purposes –

(a) any quantity of such minerals within the limits specified in Schedule III without any payment ;

(b) any quantity of such minerals exceeding such limits but not exceeding twice such limits, which is won during prospecting operations, on payment of royalty for the time being specified in the Second Schedule to the Act in respect of those minerals ;

(c) any quantity of limestone not exceeding 500 tonnes for testing its use in any industry specified by the Central Government in this behalf, on payment of royalty for the time being specified in the Second Schedule to the Act in respect of limestone ;

(iii) in the case of gold, silver, precious stones or mica the licensee may carry away any quantity won during the course of prospecting operations on payment of royalty for the time being specified in the Second Schedule to the Act in respect of such mineral ;

(iv) such other conditions as may be agreed upon between the parties not being inconsistent with the provisions of the Act or these rules.

45. Conditions of mining lease. – Every mining lease will be subjected to the following conditions :

(i) the provisions of clauses (b) to (l) and (p) to (u) of sub-rule (1) of rule 27 shall apply to such leases with modification that in clauses (c) and (d) for the words "State Government" the word "lessor" shall be substituted ;

(ia) mining operations shall be undertaken in accordance with the duly approved mining plan ;

(ii) (omitted) ;

(iii) the lease may contain such other conditions, not being inconsistent with the provisions of the Act and these rules, as may be agreed upon between the parties ;

(iv) if the lessee makes any default in payment of royalty as required by section 9 or commits a breach of any of the conditions of the lease, the lessor shall give notice to the lessee requiring him to pay the royalty or remedy the breach, as the case may be, within sixty days from the date of the receipt of the notice and if the royalty is not paid or the breach is not remedied within such period, the lessor without prejudice to any proceedings that may be taken against the lessee determine the lease ;

(v) the lessee may determine the lease at any time by giving not less than one year's notice in writing to the lessor ;

46. Transfer or assignment. – (1) No prospecting licence or mining lease or any right, title or interest in such licence or lease shall be transferred to a person unless he has filed an affidavit stating that he has filed an up to date income tax return, paid the income tax assessed on him and paid the income tax on the basis of self-assessment as provided in the Income Tax Act, 1961( 43 of 1961).

(2) No prospecting licence or mining lease or any right, title or interest in such licence or lease in respect of any mineral specified in the First Schedule to the Act shall be transferred except with the previous approval of the Central Government.

47. Submission of copy of licence or lease. – Every person obtaining a prospecting licence or a mining lease shall, within three months of the grant of such lease or licence, submit to the State Government concerned a certified copy of the licence or lease in duplicate.

48. Communication of transfer or assignment. – Every transferee or assignee of a prospecting licence or a mining lease or of any right, title or interest therein, shall, within one month of such transfer or assignment, inform the State Government of the transfer or assignment and of the terms and conditions of such transfer and assignment .

49. Prohibition of premium. – No person granting or transferring a prospecting licence or any right, title or interest in any such licence or lease shall charge or pay any premium in addition to, or in lieu of the prospecting fee ,surface rent ,dead rent , royalty payable, under the Act or such proportionate part of such fee, rent or royalty as is payable in respect of such right, title, or interest .

50. Prohibition of working of mines. – If the State Government has reason to believe that the grant or transfer of a prospecting licence or a mining lease or any right, title or interest in such licence or lease is in contravention of any of the provisions of this chapter, the State Government may, after giving the parties an opportunity to represent their views and with the approval of the Central Government, direct the parties concerned not to undertake any prospecting or mining operations in the area to which the licence or lease relates.

51. Returns and Statements. – The holder of a prospecting licence or a mining lease shall furnish to the State Government such returns and statements and within such period as may be specified by it.

52. Penalty. – (1) If the holder of a prospecting licence or a mining lease or his transferee or assignee fails, without sufficient cause, to furnish the documents or information, or returns referred to in rule 46, rule 47, rule 48, or rule 51, or acts in any manner in contravention of rule 49 or rule 50, he shall be punishable with imprisonment for a term which may extend to one year or fine which may extend to five thousand rupees or with both.

(2) If any person grants or transfers or obtains a prospecting licence or mining lease or any right, title or interest therein, in contravention of any of the provisions of this chapter, he shall be punishable with imprisonment which may extend to one year or a fine which may extend to five thousand rupees or both.