Madhya Pradesh Minor Mineral Rules 1996 PDF

MADHYA PRADESH MINOR MINERAL RULES, 1996 CONTENTS Rules: CHAPTER-I PRELIMINARY 1. Short title and commencement 2. Definitions 3....

MADHYA PRADESH MINOR MINERAL RULES, 1996 CONTENTS Rules: CHAPTER-I PRELIMINARY 1. Short title and commencement 2. Definitions 3. Exemptions CHAPTER-II GENERAL RESTRICTIONS ON UNDERTAKING MINING OPERATIONS 4. Prohibition of mining operation without a trade quarry or quarry lease 5. Restrictions on the grant of trade quarry or quarry lease CHAPTER-III POWERSTO GRANT QUARRY LEASE ANDTRADE QUARRY 6. Power to grant quarry lease 7. Power to grant trade quarry 8. , Procedure for demarcation and declaration of new quarries CHAPTER-IV GRANT OF QUARRY LEASE IN RESPECT OF MINERALS SPECIFIED IN SCHEDULE I AND SCHEDULE II 9. Application for quarry lease 10. Application Fee 11. Officer authorised to receive applications 12. Availability of certain areas 13. Reservation of areas for exploitation in the public sector, etc 14. Acknowledgement of application 15. Register of applications for quarry lease 16. Premature applications 17. Renewal of quarry lease 18. Disposal of applications for the grant or renewal of quarry lease 19. Reasons for refusal to be recorded 20. Register of quarry leases 21. Preferential Rights 22. Period of quarry lease 23. Restrictions on area of quarry lease 24. Boundaries below the Surface 25. Security deposit and surety 26. Lease to be executed within three months 27. Survey of the area leased 28. Information of agreements etc. to Panchayats 29. Rent and Royalty CHAPTER-V 1  QUARRY LEASE - GENERAL CONDITIONS 30. Conditions of quarry lease 31. Special Conditions 32. Establishment of cutting and polishing units 33. Rights of Lessee 34. Right to determine lease 35. Transfer of Quarry lease CHAPTER-VI GRANT OFTRADE QUARRIES 36. Auction of quarries 37. Execution and Registration of Contract Agreement 38. Rates of royalty 39. Maintenance of Register of Trade Quarry 40. Maintenance of accounts of income 41. Resumption of Possession CHAPTER-VII QUARRYING CONDITIONS 42. Opencast working 43. Exemptions to be subject to Mines Act, 1952 and rules made There under CHAPTER-VIII PROTECTION OF ENVIRONMENT 44. Protection of Environment 45. Reclamation and rehabilitation of lands 46. Precautions against damage to public places, air pollution and noise pollution etc 47. Penalty 48. Returns 49. Relaxation from protection of Environment 50. Scheme to be submitted by the existing lessees 51. Approval of Scheme CHAPTER-IX ASSESSMENT OF ROYALTY 52. Assessment and determination of royalty CHAPTER-X PENALTY FOR UNAUTHORISED EXTRACTION ANDTRANSPORTATION 53. Penalty for un-authorised extraction and transportation CHAPTER-XI MINOR MINERAL OFFENCES PREVENTION AWARD 54. Awards 55. Authority and mode of awards CHAPTER-XII DISBURSEMENT OF REVENUE FROM MINOR MINERALS BETWEEN 2  JANPAD PANCHAYATS AND GRAM PANCHAYATS 56. Deposition of revenue CHAPTER-XIII APPEAL, REVIEW AND REVISION 57. Appeal, Review and Revision 58. Revision 59. Limitation of Appeal, Review or Revision 60. Application for Appeal, Revision or Review 61. Copies of application of appeal, revision or review to be sent to impleaded parties 62. Order on appeal, revision or review application 63. Grant of stay 64. Opportunity for being heard CHAPTER-XIV MISCELLANCEOUS 65. Power to rectify apparent mistakes 66. Relaxation of rules in special cases 67. Handling over possession of quarry 68. Permission for removal of minor minerals for Central and State Governments and their undertakings 69. Delegation of powers and functions 70. Repeal · SCHEDULE · FORMS 3  MADHYA PRADESH MINOR MINERAL RULES, 19961 AMENDING NOTIFICATIONS 1. Notfn. No. 19-53-87-XII-2, dated 19-6-1997, published in M.P. Rajpatra (Asadharan), dated 19-6-1997 atpp. 61 (5-9). 2. Notfn. No. 19-53-87-XII-2, dated 21-1-1998, published in M.P. Rajpatra Part IV (Ga), dated 30-1-1998 at pp 45-46. 3. Notfn. No. F-19-162-2000-XII-2, dated 20-3-2001, published in M.P. Rajpatra (Asadharan), dated 20-3- 2001 at p. 286. 4. Notfn. No. 19-75-2000-XII-2, dated 21-5-2001, published in M.P. Rajpatra (Asadharan), dated 21-5- 2001 at pp. 602 (1-3). 5. Notfn. No. F-19-10-99-XII-2, dated 30-5-2001, published in M.P. Rajpatra (Asadharan), dated 30-5- 2001 at pp. 620 (17-31). 6. Notfn. No. F-4-107-2000-XII-l, dated 24-11-2001, published in M.P. Rajpatra (Asadharan), dated 24- 11-2001 atpp. 1272-1272 (1). 7. Notfn. No. 19-53-87-XII-2, dated 24-6-2002, published in M.P. Rajpatra (Asadharan), dated 24-6-2002 at p. 518. 8. Notfn. No. 19-14-2002-XII-1, dated 21-3-2003, published in M.P. Rajpatra (Asadharan), dated 21-3- 2003 atpp. 246. 9. Notfn. No. 19-29-2004-XII-l, dated 13-1-2005, published in M.P. Rajpatra (Asadharan), dated 13-1- 2005 atpp. 26 (4-8). 10. Notfn. No. 19-75-2000-XII-2, dated 5-8-2005, published in M.P. Rajpatra (Asadharan), dated 5-8-2005 at p. 778 (1-3). 11. Notfii. No. 19-1-2003-XII-2, dated 1-9-2005, published in M.P. Rajpatra (Asadharan), dated 1-9-2005 atpp. 838 (28-51). In exercise of powers conferred by Section 15 of the Mines and Minerals (Regulation and Development) Act, 1957 (No. 67 of 1957), the State Government hereby makes the following rules, namely :— CHAPTER I PRELIMINARY 1. Short title and commencement. - (i) These rules may be called the Madhya Pradesh Minor Mineral Rules, 1996.' (ii) They shall come into force on first day of April, 1996. 2. Definitions. - In these Riles, unless the context otherwise requires,- (i) “Act” means the Mines and Minerals (Regulations and Development) Act, 1957 (No. 67 of 1957); (ii) “Agreement” means an agreement to quarry and carry away any one or more minor minerals specified therein; (iii) “Assessment” means the assessment levied under these rules with reference to the extent of minor minerals extracted; (iv) “Assessee'” means a person holding a quarry lease or 1 [trade quarry] and includes any other person who holds a quarry of minor minerals granted under these rules save as exempted under rules; 1 Vide Notfn. No. 19-53-87-XII-2, dated 18-3-1996, published in M.P. Rajptra (Asadharan) dated 23-3-96 at pp. 220 (70-126). 4 (v) “Assessment Year” means the yearly period beginning from the date of commencement of the lease and ending on 31st December for the first year of the lease and thereafter from 1st January to 31st December or part thereof; 2 [(v-a) “Assessing Authority” means Mining Officer, Assistant Mining Officer and Mining Inspectors posted in the district;] (vi) “Appellate Authority” means the Government or any other authority vested with such powers under these rules; (vii) “Below Poverty Line” means the family of below poverty line as declared by the State Government from time to time; (viii) “Competent Authority” means a competent authority appointed by the State Government to carry out the provisions of these rules; (ix) (a) “Collector” and “Additional Collector” of Senior IAS Scale have the same meaning respectively assigned to them in the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959);\ (b) “Commissioner ’ of a revenue division of Madhya Pradesh have the same meaning assigned to it in the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959); 1 [(ix-a) “Corporation” shall have the same meaning as assigned to it in the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956).] “Dead Rent” and “Royalty” have the meanings respectively assigned to them in the Act; (x) “Director” Means the Director of Geology and Mining, Madhya Pradesh; (xi) “Joint Director”, “Deputy Director”, “Geologist”, “Assistant Geologist”, “Mining Officer”, “Assistant Mining Officer”, “Mining Inspector” means the respective officers of Directorate of Geology and Mining, Madhya Pradesh or any officer nominated as such by the Director or Collector for the purpose; (xii) “Educated Unemployed’’ means a person- (a) who is holding at least High School Examination Certificate i.e., 10th pass in 10+2 system of the Madhya Pradesh Board of Secondary Education; (b) who is a resident of Madhya Pradesh; (c) who is above 18 years but below 35 years of age; (d) who belongs to a family of below poverty line; (e) Who has not availed of any facility under anv other scheme, for Educated Unemployed at any time; (xiii) “Form” means a form appended to these rules; (xiv) “Gram Panchayat”, “Janpad Panchayat”, “Zila Panchayat” and “Gram Sabhd’ have the same meanings respectively assigned to them in the Madhya Pradesh Panchayat Raj Adhiniyam, 1993 (No. 1 of 1994); (xv) “Lessee” means a person who has been granted a quarry lease 2[. …] under these rules and include any contractor, sub-lessee, and agent whether appointed as such or not who acting or purporting to act on behalf of the lessee takes part in the 5  management, supervision, extraction and dispatch of mineral; 1 [(xvi-a)Trade quarry means a quarry for which the right to work is auctioned; (xvi-b) “Contractor” means a person who holds a trade quarry. ) (xvii) “Co-operative Society” has the same meaning assigned to it under the Madhya Pradesh Co- operative Societies Act, 1960 (No. 17 of 1961), and “Association” means a bodyof persons associated for its objects the promotion of the economic interest of its members and is registered under the Madhya Pradesh Cooperative Societies Act, 1960; (xviii) “Member of Scheduled Castes” means a member of any caste, race or tribe, or part of or group within a caste race or tribe specified as such with respect to the State of Madhya Pradesh under Article 341 of the Constitution of India; (xix) “.Member of Scheduled Tribes” means a member of any tribe, tribal community or part of or group within a tribe or tribal community specified as such with respect to the State of Madhya Pradesh under Article 342 of the Constitution of India; (xx) “Member of Other Backward Classes” means a person belonging to other backward classes as notified by the State Government from time to time; (xxi) “Minor Minerals” means the minerals as specified in Schedule I and appended to these rules and any other mineral which the Government of India may, by notification in the official gazette, declare to be a minor mineral under Section 3 (e) of the Act; (xxii) “Mining Operation” and “Quarrying operation” means any operation undertaken for the purpose of mining any minor mineral and shall include erection of Machinery, construction of roads and other preliminary operations for the purpose of quarrying and concomitant operation of handling and transport of minerals up to the point of dispatch; 2 [(xxii-a) “Municipality’’’ shall have the same meaning as assigned to it in the Madhya Pradesh Municipalities Act 1961 (No. 37 of 1961);] (xxiii) “Quarry permit” means a permission granted under these rules to extract and remove any minor mineral in any specified period; (xxiv) “Public Place” means roads, public buildings, reservoirs, irrigation canals, Tanks, Water Courses, village paths, religious places, Burial ground etc.; (xxv) “Quarry Lease” means a mining lease for minor minerals as mentioned in section 15 of the Act; (xvi) “Railway” and “Railway Administration” have the meanings respectively assigned to 6  them in the Indian Railways Act, 1989 (No. 24 of 1989); 2 [xxvi-a) “Special area” shall have the same meaning as assigned to it in the Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973 (No. 23 of 1973).] (xvii) “Schedule” means a Schedule appended to these rules; (xviii) “State Government” means the Government of Madhya Pradesh; (xix) the expressions “Mine” and “Owner” have the meanings respectively assigned to them in the Mines Act, 1952 (35 of 1952); 1. Exemptions. - Nothing in these rules shall apply to,— 2 [(i) the extraction of clay or sand, by a hereditary kumhar, a member of a Scheduled Caste or a member of a Scheduled Tribe or a Cooperative Society of such kumhars or members of Scheduled Castes or members of Scheduled Tribes for preparing tiles, pots or bricks by traditional means, but not by the process of manufacture in kilns or any mechanical means, from the area that the Gram Sabha may decide and eannark within their respective jurisdiction for such purpose : Provided that no quarrying shall be done within a distance of 100 metres from a bridge, national/state highway, railway line, public place, river bank, nalas, canal, Reservoir, dam, any natural water course or any water impounding structure, 10 metres from grameen kacha rasta. (ii) Such quarrying of minor minerals which is not done for sale but for the purpose of construction of repairs of wells, or other agricultural works or for the improvement of the dwelling houses of agriculturists, village artisans and labourers residing in villages: Provided that no quarrying shall be done within a distance of 100 metres from a bridge, national/state highway, railway line, public place, river bank, nalas, canal, reservoir, dam, any natural water course or any water impounding structure; 10 metres from grameen kachcha rasta. (iii) The minor minerals removed from Government lands for public works by Gram Panchayats, Janpad Panchayats and Zila Panchayats for work undertaken by 3 respective Panchayats. [However the departments shall be required to deposit royalty under the revenue receipt head prescribed in sub-rule (3) of Rule 10:] Provided that no quarrying shall be done within a distance of 100 metres from a bridge, national/state highway, railway line, public place, river bank, nalas canal, reservoir, dam, any natural water course or any water impounding structure, 10 metres from 7  grameen kacha rasta.] (iv) the search for minor minerals at the surface not involving any substantial disturbance of the soil by digging up pits, trenches or otherwise. The chipping of outcrops with a geological hammer for the purposes of taking samples shall not be deemed to be a substantial disturbance of the soil : Provided that the aforsaid exemptions do not afford immunity from any action which might be taken under any existing rules or any Act of the State or Central Government for unauthorised removal of minor minerals from any land by private person, without the permission of the State Government or any officer or Authority authorised by it in this behalf. CHAPTER II GENERAL RESTRICTIONS ON UNDERTAKING MINING OPERATIONS 4. Prohibition of mining operation without a 1[trade quarry] or quarry lease. - (1) No person shall undertake any mining operation in any area except under and in accordance with the terms and conditions of a 1 [trade quarry] or quarry lease granted under these rules : Provided that nothing in this sub-rule shall affect any mining or quarrying operation undertaken in any area in accordance with the terms and conditions of permit, a quarry lease, '[trade quarry] or royalty quarry granted before the commencement of these rules which is in force at the time of such commencement. (2) No '[trade quarry] or quarry lease shall be granted other than in accordance with the provisions of these rules. 5. Restrictions on the grant of '[trade quarry] or quarry lease. - (1) No quarry lease, or '[trade quarry] shall be granted to any person unless such person is an Indian National or a company as defined in sub-section (1) of Section 3 of tire Companies Act, 1956(No. 1 of 1956) and satisfies such conditions prescribed in these rules. Explanation. - In case of a firm or any other association of individuals, for the purpose of this sub- rule, a person shall be deemed to be an Indian National only, if all the members of the firm or association are citizens of India. (2) No quarry lease, or '[trade quarry] shall be granted in respect of an area :— (a) notified by the Government as reserved for the use of the Government, Local Authorities or for any other public or for special purposes except with the previous approval of the State Government; (b) ill forest land without the permission of appropriate authority as prescribed in the Forest (Conservation) Act, 1980 (No. 69 of 1980); 1 [(c) within a distance of 300 metres from sensitive areas like radio station, Doordarshan Kendra, airport, defence establishment etc. 100 metres from any bridge, national/state highway, railway line, public place or 10 metres from grameen kanchcha rasta. (d) except for the mineral sand or baj ri, within a distance of 100 metres from river banks, nalas, canal, reservoir, dam, any natural water course or any water impounding structure ] (e) which is not compact and contiguous. CHAPTER III POWERS TO GRANT QUARRY LEASES AND 8  2 [TRADE QUARRY] 6. Power to grant quarry lease. - Quarry lease in respect of minerals specified in Schedule I and Schedule II shall be granted and renewed by the authority mentioned in column (1) for the minerals specified in column (2) subject to the extent as specified in the corresponding entry in column (3) thereof of the Table below:— 3 [Table No. Authority Minerals Extent of powers (1) (2) (3) (4) 1. State Government i. Minerals specified in serial i. Full powers. number 1 to 3 of Schedule I. ii. Minerals specified in serial ii. Where the area applied for number 5 of Schedule I. exceeds4.00 hectares. 2. Director i. Minerals specified in serial i. Where the area applied for - number 4 of Schedule I. exceeds4.00 hectares. ii. Minerals specified in serial ii. Where the area applied for number 6 and 7 of Schedule I exceeds4.00 hectares.. 3. Collector/Additional i. Minerals specified in serial i. Where the area applied for Collector (Senior number 4 of Schedule I. does not exceed 4.00 IAS Scale) hectares. ii. Minerals specified in serial ii. Where the area applied for number 5 of Schedule I. does not exceed 4.00 hectares. iii Minerals specified in serial iii Where the area number 6 and 7 of Schedule I. applied for does not exceed 4.00 hectares iv Mineral specified in serial iv Full power number 2 of Schedule II. Ordinary clay for making bricks and tiles in chimney kilns v All Minerals specified in v Full power schedule II. Except minerals specified in serial number 1, 3 and 4 within the area of Panchayat/Corporation/Municipal ity/Special areas and Nagar Panchayat. 1 [7. Power to grant trade quarry.- 1[(1) The quarries of Minerals specified in serial number 1,3 and 4 of Schedule II shall be allotted only by auction.] (2) The quarries mentioned in sub-rule (1) shall be auctioned '[for two years.] (3) The auction of quarries mentioned in sub-rale (1) shall be conducted in a transparent manner by the 2[ColIector/Additional Collector (Senior IAS Scale).] 9 3[Omitted.] (4) The power to sanction and control the quarries mentioned in sub-rale (1) shall vest with the '[Collector/Additional Collector (Senior IAS Scale) :] 2[Provided that where the bid in an auction is less than the upset price filed by the Government, the Collector/Additional Collector, shall submit a proposal to the Government. The decision of the Government thereon shall be final and binding on the bidder.] 2 [8. Procedure for demarcation and declaration of new quarries.—The new quarries in respect of minerals specified in serial number 1, 3 and 4 of Schedule II, shall be demarcated and declared by the Collector in consultation with concerning Panchayats/Corporations/Municipality/Special Areas or Nagar Panchayats, as the case may be : Provided that if consultation is not received within a period of 30 days by the concerning bodies, the Collector shall be at the liberty to demarcate and declare new quarries in respect of minerals specified above after making such enquires, as he may deem fit in Non Scheduled areas after the aforesaid period.] CHAPTER IV GRANT OF QUARRY LEASE IN RESPECT OF MINERALS SPECIFIED IN SCHEDULE I AND SCHEDULE II 9. Application for quarry lease. - An application for the grant or renewal of a quarry lease shall be made in Form I in triplicate for the minerals specified in Schedule I and II. The application shall be affixed with a court fee stamp of the value of five rupees and shall contain the following particulars together with documents in support of the statements made therein-:- a) If the applicant is an individual, his name, nationality, profession, caste, educational qualification, age, b) If the applicant is a company, its name, nature and place of business and place of registration or residence, present address and financial status incorporation, list of directors and their nationality, financial status, registration/incorporation certificate; c) If the applicant is a firm, its name, nature and place of business, list of partners and their nationality, partnership deed, registration certificate, financial status; d) If the applicant is a society/association, its name, nature and place of working, list of members and their caste, educational qualification, nationality, registration certificate, bye-laws and financial status of individual member; e) A description illustrated by a map or plan showing as accurately as possible the situation and boundaries of the land in respect of which the quarry lease is required where the area is unsurveyed the location of the area should be shown by some permanent physical feature, roads, tank, etc.; f) Copy of latest Khasra Panchsala; g) The minerals or mineral which the applicant intends to quarry or mine; h) The period for which the quarry lease is required; i) The purpose for which the extracted mineral is to be used; j) Every application for the grant or renewal of a quarry lease shall be accompanied by an affidavit showing particulars of the areas mineral-wise in each district of the State, which the applicant or persons jointly with him :- i. already holds under quarry lease; ii. has already applied for, but not granted; and 10  iii. being applied for simultaneously; k) An affidavit to the effect that the applicant has, where the land is not owned by him, obtained surface rights over the area or has obtained the consent of the owner/owners for conducting mining/ quarrying operations : Provided that no such affidavit shall be necessary where the Land- rights vest with the State Government; (1) Every application for the grant or renewal of a quarry lease shall be accompanied by a no dues certificate in Form II granted by the Mining Officer or Assistant Mining Officer, '[or incharge of the mining section of the district] in respect of payment of mining dues payable under the Act or rules made thereunder from all the districts where the applicant holds or held mineral concessions : Provided that it shall not be necessary for the applicant to produce the no dues certificate if he has furnished an affidavit and such other evidence as may be required to the satisfaction of the concerned authority that he does not hold and has never held any minerals concession in any district of the State : Provided further that the grant of no dues certificate shall not discharge a holder of such certificate from the liability to pay the mining dues which may be subsequently found to be payable by him under the Act or Rules made thereunder. 10. Application Fee. - (1) There shall be paid in respect of every application for grant or renewal of a quarry lease in respect of a mineral specified in Schedule I, an application fee of Rs. 5000/- (Rs. Five thousand) and Rs. 250/- (Rs. Two Hundred Fifty) in respect of a mineral specified in Schedule II : 1[Provided that the Quarry Lease of the minerals specified at Sr. No. 1, 2 and 3 of Schedule I shall be granted only after prospecting and application for grant or renewal of quarry lease shall be made only after depositing Rs. 5,000 (Rs. Five thousand) as application fee.] 2. Where an application for the grant or renewal of a quarry lease is refused or the applicant refuses to accept the lease on account of any special conditions imposed therein under Rule 30 the fee paid by the applicant under subrule (1) 2 3[shall be refunded to him by the Collector/Additional Collector] and if the applicant refuses to accept the lease or withdraws the application or fails to furnish the requisite information the application fee shall be forfeited to the State Government. 3. The amount of fee shall be deposited in the Government treasury under the revenue receipt head - "0853 Mines and Minerals 102-c Mineral concession fees, rent and royalties. 800 other receipts 002. receipt from minor minerals including fines and forfeitures, and the original treasury receipted Challan shall be attached to the application. Subs, by Notfn. No. 19-53-87-XII-2, dated 19-6-1997. 11 2[11. Officer authorised to receive applications. - The Mining Officer or Assistant Mining Officer or in their absence any officer authorised by the Collector of the district shall receive the applications and shall enter on it the date on which the application was received by him.] 2[12. Availability of certain areas. - No application for quarry lease of minerals at S.No. 1 to 4 of schedule I shall lie for area previously held or which are being held under a quarry lease or in respect of which the order had been made for the grant thereof but due to any reason lease deed is not executed and in respect of which the order granting lease has been revoked or in respect of which an application for quarry lease has been rejected on the ground that the area should be reserved for any purpose, unless the date from which the area shall be available for grant is notified in the official Gazette at least thirty days in advance : Provided that the State Government may for reasons to be recorded in writing relax the provisions of this mle in any special case.] 13. Reservation of areas for exploitation in the public sector, etc. - The State Government may, by notification in the Official Gazette, reserve any area for conservation, Protection of environment, assessment of reserve by the State Government or for Exploitation by the Government, a Corporation established by Central or State Government or a Government Company within the meaning of Section 617 of the Companies Act, 1956 (Act 1 of 1956). 14. Acknowledgement of application.- (1) Where an application for the grant or renewal of a Quarry lease is delivered personally its receipt shall be acknowledged forthwith; and where such application is received by registered post, its receipt shall be acknowledged on the same day; and in other cases, the receipt shall be acknowledged within three days of the receipt. (2) The receipt of every such application shall be acknowledged in Form III. 15. Register of applications for quarry lease. - (1) A register of applications for quarry lease shall be maintained by the mining officer or Assistant Mining Officer of the district in Form IV. (2) The Register of application for quarry leases and the register of quarry leases shall be open to inspection by any person on payment of the following fee:- Rs. 10.00 (Rupees Ten) for first hour or part thereof; Rs. 5.00 (Rupees Five) for next subsequent hour or part thereof. 1[(3) The fee under sub-rule (2) shall be deposited in the same manner as prescribed in sub-rule (3) of Rule 10] 16. Premature applications. - Applications for the grant of a quarry lease in respect of areas whose availability for grant is required to be notified under Rule 12 shall if :- a) no notification has been issued under that rule; or b) where any such notification has been issued, the period specified in notification has not expired; shall be deemed to be premature and shall be entertained and the application fee thereon, if any paid, shall be refunded. 12 17. Renewal of quarry lease. - Every application for the renewal of a quarry lease shall be made at least one year before the date of which the lease is due to expire. 18. Disposal of applications for the grant or renewal of quarry lease.- 1. On receipt of an application for the grant or renewal of a quarry lease, its details shall be first circulated for display on the notice board of the Zila Panchayat, Janpad Panchayat and 2[Gram Sabha] concerned of the district and collectorate of the district concerned. 1[(2) The Sanctioning Authority after making such enquires as he deems fit, may sanction the grant or renewal of a quarry lease or refuse to sanction it within one year from the date of receipt of the application for the grant of quarry lease or for the renewal application before the expiry of quarry lease already sanctioned. Otherwise the application shall be deemed to have been refused : Provided that no quarry lease for new area shall be sanctioned without obtaining opinion of the respective 2[Gram Sabha.] 3. Notwithstanding anything contained in sub-rule (2), all pending applications for the grant inclusive of such applications on which agreements have not been executed on the date of commencement of these rules shall be deemed to have been refused by the Sanctioning Authority. Fresh applications in this behalf may be made according to the procedure laid down under these rules.' 3[(4) Where an applicant for grant or renewal of a quarry lease, dies before the sanction order is passed it will be deemed to have been filed by his heir and if the applicant dies after the sanction order of grant or renewal but before execution of lease deed it will be deemed to have been granted or renewed to the legal heir of the applicant.] 4[(5) Mineral concession to Minerals specified at Sr. No. 1, 2 and 3 of Schedule I may be granted as per the provisions of Granite Conservation And Development Rules, 1999 and Marble Conservation and Development Rules, 2002.] 19. Reasons for refusal to be recorded. - (1) Where the Sanctioning Authority passes any order refusing to grant or renew a quarry lease, it shall communicate in writing the reasons for such order to the person against whom such order is passed. Where it appears that the application is not complete in all material particular is not accompanied by the required documents, the Collector or any other Officer authorised by him in his behalf shall by a notice served by registered post in writing, requiring the applicant to make good the omission or as the case may be, to furnish the documents, not later than 30 (Thirty) days from the date of communication of the said notice. An application for the grant or renewal of a quarry lease made under Rule 9 shall not be refused by the Sanctioning Authority only on the ground that application is not complete in all material particulars or is not accompanied by the documents. 20. Register of quarry leases. - A register of quarry leases shall be maintained by the Mining Officer/Assistant Mining Officer in Form V. 21. Preferential Rights. - (1) A quarry lease for minerals specified in S. No. 1 of Schedule 1 shall be granted only to the Madhya Pradesh State Mining Corporation Limited (A Government of Madhya Pradesh Undertaking) for establishing cutting and polishing unit in the State by itself or as a Joint Venture. 13 (2) Minerals specified at '[S.No. 4 to 7] of Schedule I and Minerals specified in Schedule II - i. Co-operative Society/Association of Scheduled Tribe/Schedulcd Caste/Backward Classes, Co- operative Society/Association of educated unemployed youths or individuals where more than fifty per cent, of the members belong to the concerned category and also where the Chairman of the Society is of the concerned category and also where the executive committee have the representation in the ratio of the members of the concerned category and hail from below Poverty Line families listed in the District Rural Development Agency or educated unemployed youth belonging to Scheduled Tribe/Scheduled Caste/Backward Classes in that order. ii. An educated unemployed youth belonging to below Poverty Line families listed in the District Rural Development Agency; iii. Any other person belonging to below Poverty Line families listed in the district Rural Development Agency; iv. Any other applicant: 2 [Provided that exclusive Co-operative Society/Association of Women or an individual woman shall have the preferential right over other applicants in the same order as provided in clause (i), (iii) and (iv) :] 3 [Provided fiither that] the above priorities shall hold good only if the applications are received within one month from the date of first application. 1[(2) (a) for mineral concession to the minerals specified in serial number 1, 2 and 3 of Schedule I, the following model forms are prescribed, namely :— i. Form-XXII Application form for prospecting licence ii. Form-XXIII Receipt of application for prospecting licence iii. Form-XXIV Application for renewal of prospecting licence iv. Form -XXV Register for application for prospecting licence v. Form-XXVI Register of prospecting licence vi. Form-XXVII Model form of prospecting licence vii. Form-XXVIII Application form for quarry lease viii. Form-XXlX Application form for renewal of quarry lease ix. Form-XXX Model form for transfer of prospecting licence. ] (3) Whenever more than one application in any particular category are received for minerals of Schedule I for an area, the Sanctioning Authority shall while sanctioning a quarry lease take into consideration the following matters in respect of the applicants— i. Any special knowledge or experience of mining and export; ii. Technical and special management experience of establishing, running and maintaining cutting polishing industry; and iii. The nature and quality of the technical staff and the plant and machinery deployed or to be deployed by the applicant; iv. The financial resources of the applicant; v. The Proposed pleased programme & establishing the Industry Notwithstanding anything contained in sub-rule (1) or (2), it shall be competent for the Sanctioning Authority for reasons to be recorded in writing and with the prior approval of the State Government to grant a lease in variance with the order of priority specified in sub-rule (1) and (2) : 14  Provided that in cases falling under category (i) to (iv) in sub-rule (2), the grant of lease shall be subject to the condition that lessee shall work the quarry directly and shall not hand it over to any other party for working : Provided further that the Sanctioning Authority may refuse to accord preference to the application of a Co-operative Society/Association if he finds that the particular society does not work properly in the interest of the workers concerned: The lessee shall give priority in employment to the resident of the village in which the quarry lease is granted. 22. Period of quarry lease 1[………….]. - The period for which a quarry lease 1[…….] may be granted or renewed shall be as shown in the table below :- No. Name of the Minerals Period In case of individual In case of Co-operative Society (1) (2) (3) (4) 2[1 …………………………….Omitted 2. …………………………….Omitted 3. …………………………….Omitted.] 4. Limeston when used in kilns for Ten years with renwal Ten years with renwal manufacture of lime used as building clause. clause. material. Ten years with Ten years with renwal 5. Flagstone-Natural sedimentary rock which renewal chause. clause. is used for flooring, roof top etc. ans used in cutting and polishing industry. 6. Ten years with Ten years with renewal Stone for making gitti by mechanical crushing (i.c use for crusher). renewal chause. chause. 7. Bentonite/Fuller’s earth Five years with Five years with renewal clause renewal clause Ten years with Ten years with renewal 8 Clay for chimney Bhatta and tiles industry. renewal chause. chause. Three years without Two years without renewal chause. renewal chause. 9.. Ordinary Sand. Bajri. Two years without Two years without 10. Ordinary clay for making bricks, pots tiles renewal clause. renewal clause. etc. except chimney Bhatta. Two years without Two years without 15  renewal clause. renewal clause. 11. Stone, Boulder, Road metal Gitti, Dhoka, Two years without Two years without Khanda, Dressed stones Rubble, Chips. renewal clause. renewal clause. Two years without renewal clause. Murrum. Two years without 12. renewal clause. Two years without renewal clause. Two years without Lime Kankar. renewal clause. Two years without 13. renewal clause. Two years without Gravel. renewal clause. Two years without 14. renewal clause. Two years without renewal clause. Lime shell. 15. Two years without Two years without Reh mitti. renewal clause. renewal clause. 16. Two years without Two years without renewal clause. renewal clause. Slate when used for building material. 17. Two years without Two years without Shale when used for building Material. 18. renewal clause. renewal clause. Any other minor mineral not specified 19. above. 23. Restrictions on area of quarry lease.- 1 [(i) No lessee shall ordinarily hold in aggregate more than the area of Limestone (Minor Mineral), 2[* * *] and Flag stone in the State as specified below :— Cooperative Society/Association/Companies — 10 Hectares Individuals — 4 Hectares Explanation.— The above limit shall ordinarily be applicable in Renewal cases also.] At the time of renewal of the lease, the lessee shall be entitled to surrender any compact part of the leased area. 24. Boundaries below the Surface. - The boundaries of the area covered by a quarry lease shall run vertically downwards below the surface towards the centre of the earth. 16  25. Security deposit and surety. - (1) An applicant for quarry lease shall before the deed referred to in Rule 26, is executed, deposit as security, a sum of rupees Ten thousand in respect of quarry lease for dimensional stones-Granite, dolerite, rhyolite, marble and other igneous and metamorphic rocks which are used for cutting and polishing for making blocks, slabs and tiles of specific dimensions '[and Rs. One thousand in respect of quarry leases of limestone and other minerals specified dimensions '[and Rs. One thousand in respect of quarry leases of limestone and other minerals specified in Schedule-I and minerals specified in Schedule-II, in the same manner as specified in sub-rule (3) or Rule 10]; (2) The applicant shall also submit the surety bound duly filled in Form VI or a bank guarantee for an amount equal to two years of dead rent : Provided in case of a Co-operative Society/Association the provision of sub-rule (2) may be waived by the Competent Authority. 1 (3) Deposit made under sub-rule (i) if not forfeited under these rules and no other dues are outstanding against the lessee it shall be refunded by the Collector/ Additional Collector on the expiry lease or its determination whichever is earlier.] 26. Lease to be executed within three months. - Where a quarry lease is granted or renewed, the lease deed in Form VII shall be executed and registered under the Indian Registration Act, 1908 (No. 16 of 1908) within three months of the order of sanction of the lease and if no such lease is executed within the aforesaid period, the order sanctioning the lease shall be deemed to have been revoked : Provided that where the Sanctioning Authority is satisfied that the applicant is not responsible for the delay in the execution of the lease deed, the Sanctioning Authority may permit the execution of the lease deed after the expiry of the aforesaid period of three months. 27. Survey of the area leased. - (1) When a quarry lease is granted over any area, arrangement shall be made by the Mining Officer or Assistant Mining Officer at the expense of the lessee for the preparation of a plan and the demarcation of the area granted under the lease, after collecting a fee calculated according to the rates specified in the table below :- a. Area not exceeding 20 hectares Rs.25/- per hectare or part thereof subject to a minimum of Rs. 100/- b. Area exceeding 20 hectares Rs. 50/-per hectare or part thereof. (2) The lessee shall, erect and maintain at his own expense, boundary pillars of substantial material, standing not less than one metre above the surface of the ground at each comer or angle in the line of the boundary, delineated in the plan attached to the lease deed : (3) The fee under sub-rule (1) shall be deposited in the same manner as prescribed in sub-rule (3) of Rule 10. 28. Information of agreements etc. to Panchayats. - The Collector shall send copy of every lease deed with plan to the respective Janpad Panchayat and shall intimate the till details of area to-the respective Panchayat. 29. Rent and Royalty. - (1) When a quarry lease is granted or renewed- a. dead rent shall be charged at the rates specified in Schedule IV; b. royalty except for limestone shall be charged at the rates specified in Schedule III; 17  c. rate of royalty on limestone shall be the same as fixed by the Government of India from time to time for limestone in Schedule II of the Act; d. surface rent shall be charged at the rates specified by the Collector of the district from time to time for the area occupied or used by the lessee. (2) On and from the date of commencement of these rules , the provisions of sub rule (1) shall also apply to the leases granted or renewed prior to the date of such commencement and subsisting on such date; (3) If the lease permits the working of more than one mineral in the same area separate dead rent in respect of each mineral may be charged : Provided that the lessee shall be liable to pay the dead rent or royalty in respect of each mineral, whichever is higher in amount; (4) Notwithstanding anything contained in any instrument of the lease, the lessee shall pay rent/royalty in respect of any mineral removed and/or consumed at the rate specified from time to time in Schedule III and IV; (5) The State Government may, by notification in the Official Gazette amend the Schedules III and IV so as to enhance or reduce the rate at which rents/royalties shall be payable in respect of any mineral with effect from the date of publication of the notification in the Official Gazette : Provided that the rate of royalty/dead rent in respect of any mineral shall not be revised more than once during any period of three years; (6) No 1[granite and marble] block either processed or in the raw form or any other mineral shall be dispatched from any of leased areas without a valid transit pass issued by Mining Officer. The transit pass shall be issued on an application in Form VIII after depositing royalty for the quantity intended to be transported out of the minerals extracted. Contravention of this rule may result in forfeiture of the security deposit by the Collector without prejudice to any other action that might lie against the lessee; (7) The Transit Pass shall be in Fonn IX. CHAPTER-V QUARRY LEASE - GENERAL CONDITIONS 30. Conditions of quarry lease (1) Every quarry lease shall be subject to the following Conditions :- a. The lessee shall pay, for every year '[* * *], yearly dead rent at the rates specified in the Schedule IV in the advance for the whole "year, on or before the 20th day of the first month of the year; 2[(b) The lessee shall pay the dead rent or royalty in respect of each mineral whichever is higher in amount but not both. The lessee shall pay royalty in respect of quantities of mineral intended to be consumed or transported from the leased area, no sooner the amount of dead rent already paid equals the royalty on mineral consumed or transported by him. The dead rent or royalty shall be deposited in the 3[Revenue receipt head prescribed in sub-rule (3) of Rule 10.] c. The lessee shall also pay for the surface area occupied or used by him for the purposes of mining operations, surface rent in advance for the whole year on or before the 20th day of the first month every year; 18  d. Notwithstanding any other action that may be taken for default in the payment of dues as specified in clause (a), (b), (c) within time under these rules or under any other condition of the lease, the lessee shall pay interest at the rate of 24% per annum for all defaulted payments of dead rent, royalty and surface rent. (2) If any mineral not specified in the lease is discovered in the leased area, the lessee shall report discovery without delay to the Collector and shall not win or dispose of such mineral without obtaining a lease therefor. If he fails to apply for such a lease within three months of the discovery of the mineral, the Competent Authority may sanction lease of such mineral, to any other person, who applied for it. (3) The lessee shall not pay wages less than the minimum wages as prescribed by the State or the Central Government from time to time under the Minimum Wages Act, 1948 (No. 11 of 1948). (4) The lessee shall take all measures for planting trees in quarried area or any other area selected by the Collector not less than twice the number of trees destroyed by reasons of mining or quarrying operation in addition to restoring and levelling the land. (5) The lessee shall commence mining operation within one year from the date of execution of the lease deed and shall thereafter conduct such operations in a proper, skillfi.il and workman-like manner. Omitted by Notfn. No. 19-75-2000-XII-2, dated 21-05-2001. Subs, by Notfn. No. 19-53-87-XII-2, dated 19-6-1997. Subs, by Notfn. No. 19-29-2004-XII-1, dated 13-1-2005. (6) Subject to the other conditions of these rules, where mining operations have not commenced within a period of one year from the date of execution of the lease or discontinued for a cumulative period of six months during any calendar year after commencement of such operation, the Sanctioning Authority may, by an order, declare the quarry lease as lapsed and communicate the declaration to the lessee. (7) Where the lessee is unable to commence mining operation for a period exceeding one year or unable to continue mining after commencement for the reasons beyond his control, he may submit an application to Sanctioning Authority explaining the reasons at least ninety days before the expiry of such period. (8) There shall be paid, in respect of every application under sub-rule (7), a fee of Rs. 200/- (Rupees Two Hundred). The amount of fee shall be deposited in the Government treasury under the receipt head prescribed in sub-rule (3) of Rule 10. (9) The Sanctioning Authority of the lease may, on receipt of an application made under sub-rule (7) and on being satisfied about the adequacy and genuineness of the reason for the non-commencement of mining operations or discontinuance thereof, pass an order before the date on which the lease would have otherwise lapsed; extending or refusing to extend the period of the lease : Provided that where the Sanctioning Authority on receipt of application under sub-rule (7) does not pass any order before the expiry of the date on which the lease would have otherwise lapsed, the lease shall be deemed to have been extended until the order is passed by the concerned authority or for a period of one year whichever is earlier. (10) Where non-commencement of the mining operation within a period of one year from the date of execution of the lease deed is on account of delay in- 19  i. acquisition of surface rights, or ii. getting the possession of the leased area, or iii. supply or installation of machinery, or iv. getting financial assistance from banks or any financial institution. and if the lessee is able to furnish documentary evidence supported by a duly swom-in-affidavit that there are sufficient reasons and/or reasons beyond their control for non-commencement of mining operations, the Sanctioning Authority may revoke the declaration/order through which the lease has lapsed. 11. The lessee shall, at his own expense erect and at all times maintain and keep in good repairs boundary marks and pillars necessary to indicate the demarcation shown in the plan annexed to the lease. (12). 1[……..] (13) The lessee shall keep correct accounts showing the quantity and other particulars of all minerals obtained from the mine, date wise quantities of despatches/consumptions from the lease hold, the price obtained for such minerals, the name of the purchaser, the receipts for money received, the number of persons employed therein and shall, allow all officers of the Directorate of Geology and Mining and any officer authorised by the Zila/Janpad/2[Gram Sabha] in this behalf to examine at any time any accounts and record maintained by him and shall furnish 4 5 to the Collector and respective Zila/Janpad/1 [Gram Sabha] such information and returns as he or it may require. (14) The lessee shall issue a transit pass in Form IX to accompany every carrier for every trip carrying mineral, or product or products from leased area. The transit pass shall be prepared in duplicate in book form. Original shall be given to the driver of the carrier after making the necessary entries. The Mining Officer shall issue the transit pass book duly stamped and signed by him on an application in Form VIII made by the lessee. The lessee shall surrender all previous duplicates of used transit pass books together with unused transit pass books issued to him before the royalty is paid by him under clause (b) of sub-rule (1) and fresh transit passes are issued. The Mining Officer will keep proper accounts of issued and used duplicate transit pass books and unused transit pass books deposited back by the lessee. (15) Whosoever transports minerals or their products like bricks, tiles, lime, dressed stone, blocks, Slabs, tiles, chips, stone dust and ballast etc. without a valid pass in Form IX or if the transit pass is found to be incomplete distorted or tampered with, the Collector, Additional Collector, Chief Executive Officer of Zila/Janpad Panchayat and '[officer authorised by the Gram Sabha]/Dcputy Director, Mining Officer, Assistant Mining Officer or Mining Inspector may seize the mineral or its products together with all tools and equipment and the vehicle used for transport : 2[Provided that the provisions of this sub-rule shall not apply for the purposes of clause (i) of Rule 3.] (16) The Collector, Additional Collector, Chief Executive Officer ofZila/ Janpad Panchayat and Gram Panchayat/Deputy Director, Mining Officer by an order in writing may impose a penalty up to Rs. Ten Thousand which in no case shall be less than rupees one thousand. (17) The seized mineral or its products, tools, equipment and vehicle may be released when the penalty so imposed is deposited by the offender. Omitted by Notfn. No. F-4-107-2000-XII-1, dated 24-11-2001. Subs, by Notfn. No. F-19-162-2000-XII-2, dated 20-3-2001. 20 (18) If the penalty so imposed is not paid within 15 days from the date of the order, of imposing the penalty, all the minerals or its product, tools equipment and vehicles etc. so seized shall stand forfeited and shall become the property of the State Government. (19) The lessee shall submit the records and books of accounts for the purpose of assessment of royalty to the Assessing Authority concerned within thirty days from the 30th June/31st December or whenever demanded by the Assessing Authority concerned though a notice in writing. In case if he fails to do so, a penalty of rupees one thousand may be imposed for every month till he produces the said record. (20) The lessee shall— (a) Submit by the 1 Oth day of every month to the Collector and Gram Panchayat a return in Form X giving the total quantity of mineral/ minerals raised, removed/consumed in previous calendar month; (b) Submit on or before 15th day of July and January to the Collector half yearly return for half year ending June and December in Form XI; (c) Submit by the 31 st January every year to the Collector a Statement giving information in Form XII regarding quantity and value of mineral/minerals raised/removed/consumed during last calendar year, average number of labourers employed (men and women separately), number of days worked. (21) The lessee shall strengthen and support to the satisfaction of the Railway Administration or the Sanctioning Authority, as the case may be, any part of mine which its opinion requires such strengthening or support for the safety of any railway, bridge, national highway, reservoir, tank, canal, or any other public works or buildings. (22) If the lessee or his transferee or assignee does not allow entry or inspection under sub-rule (23) the Sanctioning Authority may cancel the lease and forfeit in whole or in part the security deposit paid by the lessee under Rule 25. (23) (i) The lessee shall allow officers authorised by the State or the Central Government and any officer authorised by the Z i la/Janpad/6 [ Gr am Sabha] to enter upon any building excavation or land comprised in the lease for the purpose of inspecting the same. (iii) Every owner, agent or manager of a quarry shall provide all necessary facilities to the persons deputed by the State Govermnent for the purpose of undertaking research or training in matters relating to mining operations. (24) The lessee shall immediately give to the Director General of Mines Safety, Government of India, Dhanbad, the Controller General, Indian Bureau of Mines of Government of India, Nagpur and the District Magistrate of the District in which the mine is situated, a notice in writing in Form XIII appended to these rules, as soon as- i. the working in the mine extends below superjacent ground; ii. the depth of any open cast excavation measured from its highest to the lowest point exceeds six metres; or iii. the number of persons employed on any day exceed 50; or iv. any explosive are used. Subs, by Notfn. No. 19-162-2000-XII-2, dated 20-3-2001. 21 (25) The State Government shall at all times have the right of pre-emption of the minerals won from the land in respect of which the lease has been granted: Provided that a fair market price prevailing at the time of pre-emption shall be paid to the lessee for all such minerals. (26) In case of breach by the lessee or his transferee or assignee of any of the conditions specified in sub-rule (1), (3), (4), (11), (12) or (13) of this rule, the Collector/Additional Collector shall give notice in writing to the lessee, or his transferee or his assignee asking him to show cause why he should not be penalised for the breach committed and directing him to remedy the breach within sixty days from the date of the notice and if the lessee or his transferee or assignee fails to show proper cause or if the breach is not remedied within such period the Sanctioning Authority, without prejudice to any other action, may determine the lease and forefeit the whole or part of the security deposit or in the alternative may receive from the lessee such penalty for the breach not exceeding four times the amount of the said half yearly dead rent as the lessor may fix. (27) In case of breach by the lessee or his transferee or assignee of any other conditions of the lease, the Sanctioning Authority may require the lessee to pay a penalty not exceeding an amount equivalent to twice the amount of annual dead rent. (28) A quarrying lease may contain such other conditions as tire Sanctioning Authority may deem necessary in regard to the following, namely:- a) The time limit, mode and place of payment of rents and royalties b) The compensation for damage to the land covered by lease c) The felling of trees d) The restriction of surface operations in any area prohibited by any authority e) the notice by lessee for surface occupation; f) the facilities to be given by the lessee for working other minerals in the leased area or adjacent area; g) the entering and working in a reserved or protected forest; h) the security pits and shafts; i) the reporting of accidents; j) the indemnity to State Government against claims of third parties; k) the maintenance of sanitary conditions in the mining area; l) the delivery of possession over lands and mines on the surrender, expiration or determination of the lease; m) the forfeiture of property left after determination of the lease; n) the power to take possession of plant, machinery, premises, and , mines in the event of war or emergency; o) the manner in which rights of third parties may be protected (whether by way of payment of compensation or otherwise) in cases where any such party is prejudicially affected by reason of any mining operation; p) the manner in which rehabilitation of flora and other vegetation such as trees, shrubs and the like destroyed by reason of any quarrying or mining operation shall be made in the same area or in any other areas selected by the State Government, (whether by way of reimbursement of the cost of rehabilitation or otherwise) by the person holding the quarry lease; q) the construction, maintenance and use of roads, power transmission lines, tramways, railways, aerial rope ways, pipelines and making of passage for water for mining purposes on any land comprised in a quarry or to other mineral concessions. 22  31. Special Conditions. - A quarry lease may contain any other special conditions as may be specified by the State Government. 32. Establishment of cutting and polishing units.- (1) Notwithstanding anything contained in sub- rule (5) of Rule 30 in respect of quarry leases of granite granted for the establishment of cutting and polishing unit, if the unit is not established within a period of one year from the date of Execution of lease/leases within the State the said lease/leases shall be deemed to be terminated. The lessee can transport including inter state movement or export the rough blocks within the first year of the quarry' lease, the quantity as may be permitted by the State Government. 33. Rights of Lessee. - Subject to the conditions specified in rule 30 the lessee for the purposes of mining operations with respect to the land leased to him shall have the right :- i. to work the mines; ii. to sink pits and construct buildings and roads; iii. to erect plant and machinery; iv. to quarry and obtain building and road materials and make bricks, but not for sale; v. to use water; vi. to use land for stacking purpose; vii. to do any other thing specified in the lease. 34. Right to determine lease. - The lessee may determine the lease at any time by giving not less than six months notice in writing to the Sanctioning Authority after paying all outstanding dues of the Government. 35. Transfer of Quarry lease. - (1) '[No prospecting licensee/lessee, shall transfer or sub-let his prospecting licence/lease to any other person] nor make any arrangement with any body, whereby even indirectly any right over the leased areas is passed on to any other persons : Provided that the permission for transfer may be granted to the lessee by the Sanctioning Authority on payment of 7 8[Rs. 1000/- (Rupees One thousand) to be deposited in the same manner as prescribed in sub-rule (3) of Rule 10] and transferee has accepted all the conditions and liabilities which the transferor was having in respect of any such quarry lease. 1[(2) The sanctioning authority may by an order in writing determine the prospecting licence/lease at any time, if in the opinion of sanctioning authority the prospecting licensee/lessee has committed a breach of sub-rale (1).] Subs, by Notfn. No. 19-1-2003-XII-2, dated 1-9-2005. Subs, by Notfn. No. 19-53-87-XII-2, dated 19-6-1997. Ins. by Notfn. No. 19-1-2003-XII-2, dated 1-9-2005. Subs, by Notfn. No F-19-10-99-XII-2, dated 30-5-2001. Subs, by Notfn. No. 19-29-2004-XII-1, dated 13-1-2005. 23 3. Where on an application for transfer of quarry lease under sub-rule (1), the Sanctioning Authority has given consent for transfer of such lease, a transfer lease deed in Form XIV shall be executed within three months from the date of permission or within such further period as the Sanctioning Authority may allow in this behalf: 1[Provided that where sanctioning authority has given consent for transfer of prospecting licence, a transfer deed in Form XXX shall be executed within three months from the date of permission or within such further period as the sanctioning authority may allow in this behalf.] 2[CHAPTER VI GRANT OF TRADE QUARRIES 36. Auction of quarries.— 3[(1) The quarries of minerals specified in serial number 1, 3 and 4 of Schedule II shall be allotted only by auction.] 1. Notice of auction shall be published in Form XV atleast 15 days before the auction at the notice board or any conspicuous place by way of fixing the copy of such notice thereon in the office of the concerned Gram panchayat, Janpad Panchayat, Zila Panchayat, Development Block, Tahsil and Collectorate and the village where the quarries are situated. 2. Evety bidder shall execute an agreement in form XVI before he/she participates in the auction. 37. Execution and Registration of Contract Agreement.— (1) The Contract agreement in Form XVIII together with surety bond in Form XVII shall be executed by the successful bidder within a period of 30 days from the date of receipt of approval of the contract : Provided that where the State Government or the 3[Collector/Additional Collector (Senior I.A.S. Scale)] or any Officer authorised by the State Government in this behalf is satisfied that the successfiil bidder is not responsible for the delay in the execution of the agreement, the Government or the 3[Collector/Additional Collector (Senior I.A.S. Scale)] or any officer authorised by the State Government as the case may be, may permit the execution of the formal agreement after expiry of the aforesaid period. The contract agreement in Form XVIII relating to auction of trade quarry shall be registered in accordance with the provisions of the Indian Registration Act, 1908 (XVI of 1908). 38. Rates of royalty— The rates of royalty payable on minerals despatched from the auctioned quarry shall be as given in Schedule III of these rales. 39. Maintenance of Register of Trade Quarry— The register of quarries allotted by auction shall be maintained in form XXII by the 1 [Collector/ Additional Collector (Senior I.A.S. Scale).] 40. Maintenance of accounts of income— The accounts of income obtained from the auction of trade quarries shall be maintained in Form XXIII by the authority mentioned in Rule 39. 24  41. Resumption of Possession.— (1) Where an auction quarry is cancelled or determined or a decision is taken to resume possession of the quarry in the public interest or the period for which the auction quarry is granted has expired, the contractor shall hand over possession of the quarry to the 1 [Collector/ Additional Collector (Senior I.A.S. Scale)] within a period of seven days from the date of cancellation or determination or decision to take back possession in the public interest is communicated or on the day following the date of expiry of the period of auction quarry, as the case may be. 2. Where the contractor fails to hand over possession of the auction quarry within the period specified in sub-rule (1), the1 [Collector/Additional Collector (Senior I.A.S. Scale)] or an Officer authorised by him shall serve or cause to be served a notice on the contractor either by post or by tendering or delivering the copy of it personally to the contractor or one of his/her family members or servants or by affixing it to a conspicuous part of the place of his/her residence or place of business or publishing it in at least one news paper having circulation in the locality where the contractor resides. 3. The notice under sub-rule (2) shall contain a statement that the contractor shall hand over possession of the auction quarry to the '[Collector/Additional Collector (Senior I.A.S. Scale)] or an Officer authorised by him/her '[under subrule (2)] within a period of seven days of the date of service of the notice. 4. Where a contractor fails to hand over possession of the auction quarry within the period specified in the notice under sub-rule (2), the1 [Collector/Additional Collector (Senior I.A.S. Scale)] or an Officer authorised by him/her '[under subrule (2)], may take possession of the auction quarry from the contractor and for that purpose may use such force as may be considered necessary. 5. If on the expiry of the period of the contract, a contractor fails to hand over possession on the next day, the'contractor shall abide by all the conditions of the agreement till possession is taken back.] CHAPTER VII QUARRYING OPERATIONS 42. Opencast working. - (1) In opencast workings, the benches forrrted shall be so arranged that the benches in mineral and overburden are separated so as to avoid mixing of waste with mineral. i. In alluvial soil, murrum, gravel, clay or other similar ground, the sides shall be slopped at an angle of safety not exceeding 45 degrees from horizontal or such other angle as the Deputy Director may permit by an order in writing; ii. the sides shall be kept benched, and the height of any bench shall not exceed 1.5 metre and the breadth thereof shall not be less than the height; iii. the benches in overburden shall be kept sufficiently in advance so that their workings do not interfere with the working of mineral; iv. The overburden and waste material obtained during mining operations shall not be allowed to be mixed with non-salable or sub-grade minerals. They shall be dumped and stacked separately; v. The mining operations shall be carried out in workmen-like manner and in accordance with the provisions of the State and Central Acts and rules wherever applicable; vi. The Collector of the district concerned or any officer authorised by the State Government if in his opinion the compliance with the provisions thereof not reasonably practicable, may, by any order in writing and subject to such conditions as he may specify therein, exempt from the operation of these rules for any workings in those cases in which special difficulties exist: Provided that all sand quarries, operated by co-operative societies/ associations of scheduled tribe/caste/backward classes and educated unemployed and an individual member of 25  scheduled tribe/caste and backward classes shall be exempted from compliance of these rules subject to the condition that loose stones and debris shall not be allowed to remain within a distance of three metre form the edge of excavation and no undercutting of any face or side is caused to permit any overhanging. 43. Exemptions to be subject to Mines Act, 1952 and rules made thereunder.- Subject to such exemptions granted under the Mines Act, 1952 and rules made thereunder, the lessees shall comply with all provisions of the said Act and rules. CHAPTER VIII PROTECTION OF ENVIRONMENT 44. Protection of Environment, r (1) Every holder of quarry lease shall take all possible precautions for the protection of environment and control of pollution while conducting quarrying operation in the following manner :- a) Wherever top soil exists and is to be excavated for quarrying operation, it shall be removed separately; b) The top soil so removed shall be stored for future use; c) The dumps shall be properly secured to prevent escape of material therefrom and cause land degradation or damage to agricultural fields, pollution of surface water bodies or cause floods; d) The site of dumps shall be selected as far as possible on impervious and barren ground within the leased area; e) The top soil dumps shall be suitably terraced and stablised through vegetation or otherwise. 2. The top soil so removed shall be utilised for restoration or rehabilitation of the land which is no longer required for quarrying operations. 3. Removal, Storage and utilisation of overburden, etc. a) Every holder of a quarry lease 1[ ] shall take steps so that the overburden, waste rock, rejects and fines generated during quarrying or during sizing shall be stored in separate dumps; b) The dumps shall be properly secured and shall be suitably terraced and stabilised through vegetation or otherwise; c) Wherever possible, the waste rock, over burden etc. shall be backfilled into the quarry excavations with a view to restoring the land to its original use as far as possible; d) The fines shall be so deposited and disposed that they are not allowed to flow away and cause land degradation or damage to agricultural fields, pollution of surface water bodies or cause floods. 45. Reclamation and rehabilitation of lands. - Every holder of quarry lease shall- i. Undertake the phased restoration, reclamation and rehabilitation of lands affected by quarrying operations and shall complete this work before the conclusion of such operations and the abandonment of quarry. ii. Carry out quarrying operations in such a manner so as to cause least damage to the flora of the area held under quarry lease and the nearby area; iii. Every holder of a quarry lease 1[ ] shall- a) take immediate measures for planting in the same area or any other area selected by the Collector not less than twice the number of trees destroyed by reason of any quarrying operations; 26  b) look after them during the subsistence of the lease after which the trees shall be handed over to the Gram Panchayat of the area in which the quarry is situated; and c) restore, to the extent possible other flora destroyed by quarrying operations. iv. The State Government may prescribe rates at which the cost of v. rehabilitation and reclamation shall be recoverable from the holder of a quarry lease '[ ] upon his failure to observe these rules. 46. Precautions against damage to public places, air pollution and noise pqllution etc. - Every holder of a quarry lease shall,- i. take adequate precautions against damage to public buildings or monuments, roads, religious places either within the lease area or in proximity to the lease area; ii. air pollution due to fines, dust, etc.; shall be controlled, and kept within pennissible limits specified in the Air (Prevention and Control of Pollution) Act, 1981 (No. 14 of 1981) and the Environment (Protection) Act, 1986 (No. 29 of 1986) and rules made there under; iii. noise arising out of quarrying operations shall be abated or controlled at the sources so as to keep it within permissible limits. 47. Penalty. - Whosoever contravenes any of the provisions of 1[Rule 44 to 50] shall be punishable with imprisonment for a term which may extend up to three months or with fine which may extend to five thousand rupees or with both and in the case of continuing contravention, with an additional fine which may extend upto five hundred rupees for every day during which such contravention continues after conviction for the first such contravention. 48. Returns. – (1) Every holder of a quarry’ lease shall submit to the Collector of the district concerned or any officer authorised by him within a period of 60 days of the execution of the quarry agreement, a scheme of an environment management incorporating proposals for the progressive reclamation and rehabilitation of the land disturbed by the quarrying operations, a scheme for the plantation of trees and a scheme for prevention and control of air and water pollution in Form XIX. (2) The scheme under sub-rule (1) shall be prepared in consultation with the Deputy Director. (3) The collector or the authorised officer may direct such other measures to be taken for minimising the adverse effect of quarrying operations on the environment. (4) The environmental scheme prepared under sub-rule (1) may be modified at any time on geological considerations by the holder of a quarry lease subject to the approval of Director. (5) Every holder of a quarry lease shall submit to the Collector a quarterly report in Form XX so as to reach him by 15th April, 15th July, 15th October and 15th January for the quarters ending March, June, September and December respectively. The Collector together with his comments shall send the reports to Panchayats so that they can exercise due control on protection of environment. 49. Relaxation from protection of Environment. -(1) Notwithstanding anything contained in these rules the provisions of Rules 44, 45, 46, 47 and 48 shall not apply to sand and bajn quarrying. Subs. by Notfn. No. 19-53-87-XII-2, dated 19-6-1997. (2) Relaxations may be granted by the Director, to a quarry lease holder from all or some of the provisions of environmental protection on special considerations. 27  50. Scheme to be submitted by the existing lessees.—Where quarrying operations have been undertaken before the commencement of these rules without an approved scheme of an environment management, the holder of all such quarry leases including auction quarries shall submit a scheme within a period of 90 days from the commencement of these rules to the Collector of the district concerned. 51. Approval of Scheme. - (1) The Collector shall within a period of 90 days from the date of receipt of the scheme, under Rules 48 and 50 convey his approval or disapproval together with reasons to the lessee or permit holder. 2. If no decision is conveyed within the stipulated period under sub-rule (1), it shall be deemed to have been provisionally approved subject to the final decision whenever communicated. CHAPTER IX ASSESSMENT OF ROYALTY 52. Assessment and determination of royalty. - (1) Assessment and determination of royalty due from an assessee during an assessment year or as required shall be made by the assessing authority after the returns in respect of that year have been filed by the assessee as required under the terms and conditions of the lease deed or the statement of production, despatches or consumption has been submitted by the lease/1[Trade quarry] holder : Provided that the assessing authority may make a provisional assessment for a particular period during the assessment year after the receipt of returns in respect of that period. 2. For the purpose of assessment of royalty as mentioned in sub-rule (1) the assessee shall submit monthly returns in Form X by the 10th of the following month and annual return in the Form XII within one month from the expiry of the assessment year. 3. If the assessee fails to submit returns as required under sub-rule (2) or the returns filed appear to be incorrect, the assessing authority may hold such inquiry as it may deem fit and assess royalty of the assessment year : Provided that the assessing authority shall give reasonable opportunity of being heard to an assessee before taking any action under this sub-rule. 4. For tft,e purpose of sub-rule (3) the assessing authority may serve a 15 days’ notice upon the assessee requiring in writing on a date and at place specified in the notice and to produce any evidence on which the assessee relies in support of the correctness of the returns, statement and records furnished by him and produce or cause to be produced such accounts pertaining to the assessment year as the assessment authority may require. 5. On the day specified in the notice given in sub-rule (4) or on any other day thereafter which the assessing authority may fix, the assessing authority after hearing and considering the evidence as may be produced by the assessee in this behalf, shall make an order in writing of assessment of royalty payable by the assessee. 6. Notwithstanding anything contained in these rules or in the agreement of quarry lease/1 [Trade quarry] if the assessee contravence any of the provisions of sub-rules (2), (4) and (5) or if he has not adopted any method of regular accountmg on the basis of which assessment can be made properly, the assessing authority shall assess the royalty to the best of its judgement and may impose for each of the contravention, penalty up to 20% of annual dead rent. 7. If an assessee fails to submit monthly returns in Form X under sub-rule (2) for any month within the prescribed time limit and if the assessing authority has reason to believe that the assessee 28 1. Subs. by Notfn. No. F-19-10-99-XII-2, dated 30-5-2001. has evaded or avoided payment of royalty, the assessing authority may after giving to assessee a reasonable opportunity of being heard and after making such inquiry as it may consider necessary, assess the royalty for the period to the best of its judgement. The amount so assessed shall be payable forthwith by the assessee. CHAPTER X PENALTY FOR UN-AUTHORISED EXTRACTION AND TRANSPORTATION 53. Penalty for un-authorised extraction and transportation. - (1) Whenever any person is found extracting or transporting minerals or on whose behalf such extraction or transportation is being made otherwise than in accordance with these rules, shall be presumed to be a party to the illegal extraction of minerals and every such person shall be punishable with simple imprisonment for a term which may extend to one year or with fine which may extend to five thousand rupees or with both. (2) Whenever any person is found extracting or transporting mineral in contravention of the provisions of these rules the Collector/Additional Collector/ Joint Director/Deputy Director/Mining Officer/Assistant Mining Officer, or any Officer authorised by him or Zila/Janpad/^Gram Sabha] may seize the minor minerals and its products together with all tools, equipments and vehicles used in committing such offence. (3) The officer seizing illegally extracted or transported mineral or its product, tools, equipments and vehicles shall give a receipt of the same to the person from whose possession such things were so seized and shall make report to the Magistrate having Jurisdiction to try such offence. (4) The property so seized under sub-rule (2) may be released by the officer who seized such property on execution of a bond to the satisfaction of the officer by the persons from whose possession such property was seized. It shall be produced at the time and at the place when such production is asked for by such officer : Provided that where a report has been made to the Magistrate under subrule (3) then the seized property shall be released only under the orders of such Magistrate. i ii (5) The Collector/Additional Collector/Joint Director/Deputy Director/ Mining Officer or Officer authorised by Zila/Janpad/1[Gram Sabha] may either before or after the institution of tire prosecution, compound the offence so committed under sub-rule (1) on payment of such fine which may extend to double the market value of mineral no extracted but in no case it will be less than rupees one thousand or ten times of royalty of minerals so extracted whichever is higher: Provided that in case of continuing contravention Collector/Additional Collector/Deputy Director/Mining Officer in addition to the fine imposed may also recover an amount of Rs. 500/- for each day till such contravention continues. (6) Any person who trespasses on any land in contravention of these rules, such trespasser may be served with an order of eviction by the Collector/ Additional Collector. (7) All property seized under sub-rule (2) shall be liable to be confiscated by an order of the Magistrate trying the offence if the amount of the fine and other sums imposed are not paid within a period of one month from the date of the order: 29  Provided that on payment of such sum within one month of the order all property so seized except the mineral or its products shall be released and the mineral or its products so seized under sub-rule (2) shall be confiscated and shall be the property of the State Government. (8) The authorities empowered to take action under this rule may if deem necessary, request to the police authority in writing for the help of police and the police authorities shall render such assistance as may be necessary to enable the officer to exercise the powers conferred on them by this rule to stop illegal extraction and transportation of minerals. (9) (i) Subject to such conditions as may be specified, the Collector/ Additional Collector may authorise either generally or in respect of particular case or class of cases any officer not below the rank of Assistant Mining Officer to investigate all or any offence punishable under this rule. (ii) Every officer so authorised shall in conduct of such investigation exercise the powers conferred upon the officer-in-charge of a police station by the Code of Criminal Procedure for the investigation of a cognizable offence. (iii) The investigation officer for the purposes of this rule shall exercise the powers of the Code of Civil Procedure in respect of the following matters :- a) Enforcing the attendance of any person and examining him on oath or affirmation. b) Completing production of documents. CHAPTER XI MINOR MINERAL OFFENCES PREVENTION AWARD 54. Awards. - (1) Any officer of Directorate, Geology and Mining, Madhya Pradesh furnishing information leading to or otherwise contributing to the prosecution of offence in respect of illegal mining and quarrying and transport, or of offences otherwise committed against the Act and the rules may be granted awards. (2) Awards may be granted only in case when the information furnished is useful to impose penalty under the rules. (3) Conditions and extent of award. - The awards made under these rules shall be in cash subject to the following conditions :— (i) Where minerals are seized. - The maximum amount of an award shall be 5% of the sale value of the seized mineral after realisation or five hundred rupees, whichever is less; (ii) Where no mineral is seized. - A maximum amount of an award shall be 5% of the penalty amount realised, may be awarded. (4) Award not to be claimed as of right- (i) Awards under these rules can not be claimed as matter of right. (ii) No appeal lies to any authority on any award made by the Competent Authority under these rules. 55. Authority and mode of awards. - (1) The power to grant awards shall vest with the Director. 30 (2) The case or proposal to make an award shall be examined and decision taken to grant the award by a committee consisting of the Director with two other officers of his department nominated by him. (3) The award shall be drawn on the Form 34 of the Madhya Pradesh Treasury Code Volume II by the Drawing and Disbursing Officer who disburses the pay and allowances of the Government servant concerned. CHAPTER XII DISBURSEMENT OF REVENUE FROM MINOR MINERALS BETWEEN JANPAD PANCHAYATS AND GRAM PANCHAYATS *[56. Deposition of Revenue.— (i) All revenue including dead rent, royalty, surface rent, interest and any other penalties for the quarries of minor minerals shall be deposited under the revenue receipt head prescribed in sub-rule of Rule 10. (ii) The entire revenue deposited under sub-rule (1) shall be made available for local development by the Panchayat and Social Justice Department after obtaining budget from the Finance Department. The unit for distribution of such revenue shall be the district and for distribution, a District Distribution Committee shall be constituted under the Subs. by Notfn. No. 19-29-2004-XII-1, dated 13-1-2005. Chairmanship of the Minister Incharge of the district. Members of the Parliament and the Legislative Assembly of the concerned district and the President of the District Panchayat shall be the members of this committee. The District Collector shall be the Secretary of this committee. The District Distribution Committee shall distribute the entire revenue of minor minerals received from the Government for the financial year between the concerning Gram Panchayats and the Janpad Panchayats. (iii) (a) the revenue receipt upto 3 lakh rupees shall be disbursed to the concerning Gram Panchayat. The concerning Gram Panchayat shall deposit 60% of the amount received in the Gram Kosh of the concerned village, in which the quarry is situated. (b) Janpad Panchayat shall be a unit at the district level for distribution of revenue. After distributing the revenue upto 3 lakh rupees of Gram Panchayat concerned, the balance amount, if any, shall be deemed to be the income of the concerned Janpad Panchayat. The revenue upto one crore rapees shall be allotted to concerning Janpad Panchayat in a financial year. After allotment to the concerned Gram Panchayat, the balance amount, if any, shall be distributed equally among the other Janpad Panchayats of the district and this distribution shall include that Janpad Panchayat also, to whom one crore rupees has been allotted. (c) after distribution of one crore rapees to each Janpad Panchayat, the balance amount, if any shall be distributed by the District Distribution Committee after pooling this amount and shall accord approval of allotment of the said amount for the development works for providing basic facilities in the district. (d) the Janpad Panchayat shall use allotted amount only for infrastructural development within their jurisdiction. (e) the income received from the auction and permits of quarries situated within the Corporation. Municipalities, Special areas and Nagar Panchayats shall be allotted to respective body, as the case may be, for their works. 31 (f) the overall control on the amount to be distributed as above to the Janpad Panchayat and Gram Panchayats shall be of the Panchayat and Social Justice Department. (g) The details of revenue received from the Panchayats/ Corporations/Municipalities/Special areas/Nagar Panchayats shall be maintained by the Collector.] CHAPTER XIII APPEAL, REVIEW AND REVISION 57. Appeal, Review and Revision. - 1[(1)……………] (2) Where any power is exercisable by the Collector/Additional Collector under these rules, in relation to any