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16. Power to modify mining leases granted before 25th October, 1949.

5[(1) (a) All mining leases granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972) 6[if in force at the date of commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994 (25 of 1994), shall be brought in conformity with the provisions of this Act and the rules made thereunder within two years from the date of the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994], or such further time as the Central Government may, by general or special order, specify in this behalf.

(b) Where the rights under any mining lease, granted by the proprietor of an estate or tenure before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972), have vested, on or after the 25th day of October, 1949, in the State Government in pursuance of the provisions of any Act of any Provincial or State Legislature which provides for the acquisition of estates or tenures or provides for agrarian reform, such mining lease shall be brought into conformity with the provisions of this Act and the rules made thereunder within 7[two years from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994 (25 of 1994)], or within such further time as the Central Government may, by general or special order, specify in this behalf.]

8[(1A) Where any action is taken under clause (a) or clause (b) of sub-section (1) to bring the period of any lease in conformity with the provisions of this Act and the rules made thereunder, then notwithstanding anything contained in section 8, the period of such lease shall continue to operate for a period of two years from the date of bringing such lease in conformity with the provisions of this Act.]

(2) The Central Government may, by notification in the Official Gazette, make rules for the purpose of giving effect to the provisions of sub-section (1) and in particular such rules shall provide

(a) for giving previous notice of the modification or alteration proposed to be made in any existing mining lease to the lessee and where the lessor is not the Central Government, also to the lessor and for affording him an opportunity of showing cause against the proposal;

(b) for the payment of compensation to the lessee in respect of the reduction of any area covered by the existing mining lease; and

1. Subs. by Act 37 of 1986, s. 13, for "royalty" (w.e.f. 10-2-1987).

2. Subs. by s. 13, ibid., for "four" (w.e.f. 10-2-1987).

3. Ins. by Act 10 of 2015, s. 15 (w.e.f. 12-1-2015).

4. Ins. by s. 16, ibid. (w.e.f. 12-1-2015).

5. Subs. by Act 56 of 1972, s. 9, for sub-section (1) (w.e.f. 12-9-1972).

6. Subs. by Act 25 of 1994, s. 6, for certain words (w.e.f. 25-1-1994).

7. Subs. by s. 6, ibid., for "six months from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972" (w.e.f. 25-1-1994).

8. Ins. by s. 6, ibid. (w.e.f. 25-1-1994).

(c) for the principles on which, the manner in which, and the authority by which, the said compensation shall be determined.



Mines and Minerals (Development and Regulation) Act, 1957 Back




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