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MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957

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S.1 Short title, extent and commencement

       (1) This Act may be called the Mines and Minerals 2[(Development and Regulation)] Act, 1957.
       2. Substituted for "(Regulation and Development)" by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       (2) It extends to the whole of India.
       (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.*
       * Came into force on 1.6.1958.



Here is a concise legal commentary on Section 1 of the Mines and Minerals (Development and Regulation) Act, 1957, based on the provided sources.

Legal Commentary on Section 1 of the Mines and Minerals (Development and Regulation) Act, 1957

Introduction

Section 1 of the Mines and Minerals (Development and Regulation) Act, 1957 ("the Act") is the preliminary provision that establishes the Act's short title, extent, and commencement. It declares the Act as "The Mines and Minerals (Development and Regulation) Act, 1957" and specifies that its provisions extend to the whole of India. This section is foundational, setting the jurisdictional and temporal scope for all subsequent regulatory and penal provisions governing the mining sector. The Act itself was enacted to provide for the development and regulation of mines and minerals under the control of the Union .

What Section 1 Says

Based on the legislative intent and standard text of such preliminary sections (though not explicitly reproduced in the provided case law), Section 1 typically contains the following:- Short Title: The Act is called the Mines and Minerals (Development and Regulation) Act, 1957.- Extent: It extends to the whole of India.- Commencement: It came into force on such date as the Central Government may, by notification in the Official Gazette, appoint. (The Act received Presidential assent on 28th December 1957).

Essential Ingredients

The essential ingredients of Section 1 are:1. Nomenclature: The official name of the legislation.2. Geographical Reach: Its applicability is to the entire territory of India.3. Operational Date: The date on which the law came into effect, which is critical for determining the applicability of its provisions to past and future acts.

Scope of Section

The scope of Section 1 is limited to introductory and definitional purposes. It does not create any substantive rights or obligations. Its primary legal function is to:- Identify the law.- Delineate its territorial jurisdiction.- Provide a clear start date for the Act's operation, ensuring legal certainty for all transactions and activities under it. While the section itself is not litigated, its role in establishing the Act's binding nature is implicit in every case involving mining law, as all actions under the Act are subject to its provisions.

Punishment for Section 1

Section 1 is a procedural and introductory section and does not prescribe any punishment. It merely establishes the Act's identity and scope. The penal provisions for violations under the Act are contained in other sections, most notably Section 21.

Legal Comments

  • Short Title - The Act is officially designated as "The Mines and Minerals (Development and Regulation) Act, 1957," establishing its formal identity in Indian statute law.
  • Legislative Intent - The primary purpose of the Act is to provide for the development and regulation of mines and minerals under the control of the Union government.
  • Regulatory Framework - The Act is the principal central legislation that governs the entire mineral and mining sector in India, overriding state laws on specific matters.
  • Scope of Regulation - The Act provides regulations for mining leases and licenses, controls mining operations, and aims to protect miner safety and the environment.
  • Requirement for License - Under the Act, no person shall undertake any prospecting or mining operations in any area, except under and in accordance with the terms of a valid license or lease.
  • Offence of Unlicensed Mining - Undertaking prospecting or carrying out mining operations without a license is a specific offence under Section 4(1) of the Act. [Sayyad Mohd. VS State Of A. P. - 2004 0 Supreme(AP) 850]
  • Possession vs. Mining - The act of possessing extracted minerals is not an offence under Section 4(1); the offence is the act of unlicensed mining itself. [Sayyad Mohd. VS State Of A. P. - 2004 0 Supreme(AP) 850]
  • Stringent Penalties for Illegal Mining - The Act has been amended to include stringent penalties for illegal mining, including up to 5 years of imprisonment and fines extending up to ₹5 lakh per hectare of violated land.
  • Compoundable Offences - Offences under the Act, as per the Bihar Mines & Mineral Act (which mirrors the central Act), can be compoundable, which can be a factor in granting anticipatory bail. [Rameshwar Mahto VS State of Bihar - 2017 0 Supreme(Pat) 1558]
  • Consideration of Applications - When a notification for mining leases is issued, the date of application has no relevancy; all applications received during the specified period must be considered simultaneously. [Ferro Alloys Corporation Ltd. , Vizianagaram District VS Union of India - 2007 0 Supreme(AP) 1144]
  • Powers of State Government - Section 15(1) of the Act empowers State Governments to make rules for preventing illegal mining, transportation, and storage of minerals. [K. T. Thomas VS State of Kerala, Rep. by Secretary, Department of Industries - 2020 0 Supreme(Ker) 729]
  • State Rules - Under the Act, mining for minor minerals comes under the purview of state governments, allowing them to create their own concession rules. [K. T. Thomas VS State of Kerala, Rep. by Secretary, Department of Industries - 2020 0 Supreme(Ker) 729]
  • Procedural Safeguards - State rules framed under the Act must adhere to principles of natural justice, such as providing a reasonable opportunity of being heard before any adverse order is passed. [K. T. Thomas VS State of Kerala, Rep. by Secretary, Department of Industries - 2020 0 Supreme(Ker) 729]
  • Royalty Payments - The holder of a mining lease is required to pay royalty in respect of any mineral removed or consumed, as per the provisions of the Act.
  • Distinction from Other Statutes - The MMDR Act operates in conjunction with other statutes. For instance, royalty paid by a dealer on mineral products forms part of the "sale price" under the Karnataka Sales Tax Act, 1957. [MYSORE MINERALS LTD. VS KARNATAKA APPELLATE TRIBUNAL - 2001 0 Supreme(Kar) 410]
  • Constitutional Basis - The Act is a central legislation on a matter in the Union List, reflecting the Union's control over mineral development as a matter of national policy.

S.2 Declaration as to the expediency of Union control

It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals to the extent hereinafter provided.


S.3 Definitions

       In this Act, unless the context otherwise requires-
       (a) "minerals" includes all minerals except mineral oils;
       (b) "mineral oils" includes natural gas and petroleum;
       (c) "mining lease" means a lease granted for the purpose of undertaking mining operations, and includes a sub-lease granted for such purpose;
       (d) "mining operation" means any operation undertaken for the purpose of winning any mineral;
       (e) "minor minerals" means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be minor mineral;
       (f) "prescribed


Legal Commentary on Section 3 of the Mines and Minerals (Development and Regulation) Act, 1957

Introduction

Section 3 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) provides the foundational definitions crucial for understanding the scope of minerals, minor minerals, and related terms under Indian mineral law. It establishes the legal framework for classifying minerals and empowers the Central Government to notify certain substances as minor minerals, thereby regulating their extraction, transportation, and sale.

What does Section 3 Say

Section 3 defines key terms:- Minerals: All substances obtained from the earth by mining, drilling, quarrying, etc., excluding mineral oils.- Minor Minerals: Building stones, gravel, ordinary clay, ordinary sand (excluding sand used for prescribed purposes), and any other mineral declared as minor minerals by notification in the Official Gazette by the Central Government.- The section also grants the Central Government the authority to notify other minerals as minor minerals.

Essential Ingredients

  • The scope of "minerals" includes all substances obtained through various extraction methods, subject to exclusions.
  • The definition of "minor minerals" is inclusive, covering specified substances and any other mineral notified by the Central Government.
  • The power to notify additional minerals as minor minerals is discretionary and subject to procedural compliance.
  • The section emphasizes the importance of notification in the Official Gazette for classifying minerals as minor.

Scope of Section

  • The section applies to all substances classified as minerals or minor minerals for the purpose of regulation under the Act.
  • It delineates the powers of the Central Government to expand the list of minor minerals, impacting licensing, extraction, and trade.
  • The scope extends to the regulation of minor minerals, which are often locally used and less commercially significant than major minerals.
  • It influences state-level rules and policies, as states implement rules for minor mineral concessions based on this definition.

Punishment for Section

While Section 3 itself primarily deals with definitions, violations related to the extraction, transportation, or sale of minerals/minor minerals without proper authorization can attract penalties under other provisions of the MMDR Act, such as Sections 21, 22, and 21(4A), which prescribe penalties for illegal mining and related offences. Penalties may include fines, imprisonment, or both, depending on the severity of the offence.

Legal Comments

In summary, Section 3 of the MMDR Act is a pivotal provision that defines the scope of minerals and minor minerals, empowering the Central Government to notify additional substances as minor minerals. This classification influences licensing, regulation, and penalties, with judicial decisions affirming the broad interpretation of "minerals" and the validity of notifications. Proper adherence to notification procedures and principles of natural justice are essential for lawful regulation and enforcement.

S.4(a) Termination of prospecting licences or mining leases

       .-(1) Where the Central Government, after consultation with the State Government, is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution, or to avoid danger to public health or communications or to ensure safety of buildings, monuments or other structures or for conservation of mineral resources or for maintaining safety in the mines or for such other purposes, as the Central Government may deem fit, it may request the State Government to make a premature termination of a prospecting licence or mining lease in respect of any mineral other than a minor mineral in any area or part thereof, and, on receipt of such request, the State Government shall make an order making a premature termination of such prospecting licence or mining lease with respect to the area or any part thereof.
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S.4 Prospecting or mining operations to be under licence or lease

       .-(1) 3[No person shall undertake any reconnaissance, prospecting or mining operations in any area, except under and in accordance with the terms and conditions of a reconnaissance permit or of a prospecting licence or, as the case may be, of a mining lease, granted under this Act and the rules made thereunder]:
       3. Substituted by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       Provided that nothing in this sub-section shall affect any prospecting or mining operations undertaken in any area in accordance with the terms and conditions of a prospecting licence or mining lease granted before the commencement of this Act which is in force at such commencement:
       4[Provided further that nothing in this sub-section shall apply to any prospecting operations undertaken by the Geological Survey of India,

S.5 Restrictions on the grant of prospecting licences or mining leases

       3[(1) A State Government shall not grant 4[reconnaissance permit, prospecting licence or mining lease] to any person unless such person -
       2. Substituted by Act 37 of 1986 for section 5, by Act 37 of 1986, w.e.f. 10.2.1987.
       3. Substituted by Act 25 of 1994 for sub-sec (1), w.e.f. 25.1.1994.
       4. Substituted for "prospecting licence or mining lease" by Act of 1999, (18.12.1999) w.e.f. 20.12.1999.
       (a) is an Indian national, or a company as defined in sub-section (1) of Section 3 of the Companies Act, 1956; and
       (b) satisfies such conditions as may be prescribed:
       Provided that in respect of any mineral specified in the First Schedule, no 5[reconnaissance permit, prosp

S.6 Maximum area for which a prospecting licence or mining lease may be granted

       1[(1) No person shall acquire 2[ * * *] in respect of any mineral or prescribed group of associated minerals 3[in a State] -
       1. Substituted by Act 56 of 1972, w.e.f. 12.9.1972.
       2. The expression "in anyone State" omitted by Act 37 of 1986, w.e.f. 10.2.1987.
       3. Inserted by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       (a) one or more prospecting licences covering a total area of more than twenty five square kilometres; or
       4[(aa) one or more reconnaissance permit covering a total area of ten thousand square kilometres :
       4. Clause (aa) inserted by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       Provided that the area

S.7 Periods for which prospecting licences may be granted or renewed

       .-(1) The period for which 2[a reconnaissance permit or prospecting licence] may be granted shall not exceed three years.
       1. Substituted by Act 25 of 1994 for section 7, w.e.f. 25.1.1994.
       2. Substituted for "a prospecting licence" by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       (2) A prospecting licence shall, if the State Government is satisfied that a longer period is required to enable the licensee to complete prospecting operations, be renewed for such period or periods as that government may specify:
       Provided that the total period for which a prospecting licence is granted does not exceed five years:
       Provided further that no prospecting licence granted in respect of 3[a mineral included in Part A

S.8 Periods for which mining leases may be granted or renewed

       4[(1) The maximum period for which a mining lease may be granted shall not exceed thirty years:
       4. Subs. by Act 25 of 1994, for sub-sec. (1), w.e.f. 25.1.1994.
       Provided that the minimum period for which any such mining lease may be granted shall not be of less than twenty years.]
       (2) A mining lease may be renewed for 5[a period not exceeding twenty years]]
       5. Substituted for "two periods each not exceeding ten years" by Act 25 of 1994, w.e.f. 25.1.1994.
       [Proviso omitted by Act 38 of 1999 w.e.f. 20.12.1999.]
       6[(3) Notwithstanding anything contained in sub-section (2), if the State Government is of opinion that in the interests of mineral development it is necess

S.9 Royalties in respect of mining leases

       .-(1) The holder of a mining lease granted before the commencement of this Act shall, notwithstanding anything contained in instrument of lease or in any law in force at such commencement, pay royalty in respect of any 7[mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee] from the leased area after such commencement, at the rate for the time being specified in the Second Schedule in respect of that mineral.
       7. Substituted for "Mineral removed by him" by Act 56 of 1972, w.e.f. 12.9.1972.
       (2) The holder of a mining lease granted on or after the commencement of this Act shall pay royalty in respect of any mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee from the leased area at the rate for the time being specified in the Second Schedule in respect of

S.9(a) Dead rent to be paid by the lessee

       .-(1) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 to 1972), shall, notwithstanding anything contained in the instrument of lease or in any other law for the time being in force, pay to the State Government, every year, dead rent at such rate as may be specified for the time being, in the Third Schedule, for all the areas included in the instrument of lease:
       3. Ins. by Act 56 of 1972, w.e.f. 12.9.1972.
       Provided that where the holder of such mining lease becomes liable, under Section 9, to pay royalty for any mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee from the leased area, he shall be liable to pay either such royalty or the dead rent in respect of that area, whichever is gre

S.10 Application for prospecting licences or mining leases

       (1) An application for 1[a reconnaissance permit, prospecting licence or mining lease] in respect of any land in which the minerals vest in the government shall be made to the State Government concerned in the prescribed form and shall be accompanied by the prescribed fee.
       1. Substituted for "a prospecting licence or a mining lease" by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       (2) Where an application is received under sub-section, (1), there shall be sent to the applicant an acknowledgement of its receipt within the prescribed time and in the prescribed form.
       (3) On receipt of an application under this section, the State Government may, having regard to the provisions of this Act and any rules made thereunder, grant or refuse to grant the 2[permit, licence or lease].
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S.11 Preferential right of certain persons

       .-(1) Where a reconnaissance permit or prospecting licence has been granted in respect of any land, the permit holder or the licensee shall have a preferential right for obtaining a prospecting licence or mining lease, as the case may be, in respect of that land over any other person:
       3. Substituted by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999 for Sec. 11.
       Provided that the State Government is satisfied that the permit holder or the licensee, as the case may be,-
       (a) has undertaken reconnaissance operations or prospecting operations, as the case may be, to establish mineral resources in such land;
       (b) has not committed any breach of the terms and conditions of the reconnaissance permit or the prospecting licence;
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S.12 Registers of prospecting licences and mining leases

       .-(1) The State Government shall cause to be maintained in the prescribed form -
       (a) a register of applications for prospecting licences;
       (b) a register of prospecting licences;
       1[(c) a register of applications for mining leases;
       1. Substituted by Act 38 of 1999, (18.12.1999), w.e.f. 20.12.1999 for clauses (c) and (d).
       (d) a register of mining leases;
       (e) a register of applications for reconnaissance permits; and
       (f) a register of reconnaissance permits,] in each of which shall be entered such particulars as may be prescribed.
       (2) Every such register shall be open to insp

S.13 Power of Central Government to make rules in respect of minerals

       .-(1) The Central Government may, by notification in the Official Gazette, make rules for regulating the grant of 2[reconnaissance permits, prospecting licences and mining leases] in respect of minerals and for purposes connected therewith.
       2. Substituted for "prospecting licences and mining leases" by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       (2) In particular, arid without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
       (a) the person by whom, and the manner in which, applications for 3[reconnaissance permits, prospecting licences or mining leases] in respect of land in which the minerals vest in the government may be made and the fees to be paid therefor;
       3. Substi

S.13(a) Power of Central Government to make rules for the grant of prospecting licences or mining leases in respect of territorial waters or continental shelf of India

       .-(1) The Central Government may, by notification in the Official Gazette, make rules for the grant of prospecting licences or mining leases in respect of any minerals underlying the ocean within the territorial waters or the continental shelf of India.
       1. Ins. by Act 56 of 1972, w.e.f. 12.9.1972.
       (2) Without prejudice to the foregoing power, such rules may provide for all or any of the following matters, namely:-
       (a) the conditions, limitations and restrictions subject to which such prospecting licences or mining leases may be granted;
       (b) regulation of exploration and exploitation of minerals within the territorial waters or the continental shelf of India;
       (c) ensuring that such exploration or exploitat

S.14 [Sections 5 to 13] not to apply to minor minerals

       The provisions of 2[sections 5 to 13] (inclusive) shall not apply to 3[quarry leases, mining leases or other mineral concessions] in respect of minor minerals.
       2. Subs. by Act 37 of 1986, for "sections 4 to 13", w.e.f. 10.2.1987.
       3. Substituted for "Prospecting licences and mining leases" by Act 56 of 1972, w.e.f. 12.9.1972.


S.15 Power of State Governments to make rules in respect of minor minerals

       .-(1) The State Government may, by notification in the Official Gazette, make rules for regulating the grant of 3[quarry leases, mining leases or other mineral concessions] in respect of minor minerals and for purposes connected therewith.
       4[(1A) In particular and without prejudice to the generally of the foregoing power, such rules may provide for all or any of the following matters, namely:-
       4. Inserted by Act 37 of 1986, w.e.f. 10.2.1987.
       (a) the person by whom and the manner in which, applications for quarry leases, mining leases or other mineral concessions may be made and the fees to be paid therefor;
       (b) the time within which, and the form in which, acknowledgment of the receipt of any such applications may be sent;
    

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

       .-(1)(a) All mining leases granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972) 3[if in force at the date of commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 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.
       3. Substituted by Act 25 of 1994 for certain words, w.e.f. 25.1.1994.
       (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, 1

S.17 Special powers of Central government to undertake prospecting or mining operations in certain lands

       .-(1) The provisions of this section shall apply 1[* * *] in respect of land in which the minerals vest in the Government of a State 2[or any other person].
       1. Omitted by Act 56 of 1972, the word "only" w.e.f. 12.9.1972.
       2. Inserted by Act 56 of 1972, w.e.f. 12.9.1972.
       (2) Notwithstanding anything contained in this Act, the Central Government, after consultation with the State Government, may undertake 3[reconnaissance, prospecting or mining operations] in any area not already held under any 4[reconnaissance permit, prospecting licence or mining lease] and where it proposes to do so, it shall, by notification in the Official Gazette,-
       3. Substituted for "prospecting or mining operations" by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
 &n

S.17(a) Reservation of area for purposes of conservation

       .-(1) The Central Government, with a view to conserving any mineral and after consultation with the State Government may reserve any area not already held under any prospecting licence or mining lease and, where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.
       7. Inserted by Act 37 of 1987, w.e.f. 10.2.1987.
       1[(1A) The Central Government may, in consultation with the State Government, reserve any area not already held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a government company or corporation owned or controlled by it, and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and t

S.18 Mineral Development

       .-(1) It shall be the duty of the Central Government to take all such steps as may be necessary 4[for the conservation and systematic development of minerals in India and for the protection of environment by preventing or controlling any pollution which may be caused by prospecting or mining operations] and 5[for such purposes] the Central Government may, by notification in the Official Gazette, make such rules as it thinks fit.
       4. Substituted for "for the conservation and development of minerals in India" by Act 37 of 1986, w.e.f. 10.2.1987.
       5. Substituted for "for that purpose" by Act 37 of 1986, w.e.f. 10.2.1987.
       (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:
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S.18(a) Power to authorise Geological Survey of India, etc. to make investigation

       Where the Central Government is of opinion that for the conservation and development of minerals in India, it is necessary to collect as precise information as possible with regard to any mineral available in or under any land in relation to which any prospecting licence or mining lease has been granted, whether by the State Government or by any other person, the Central Government may authorise the Geological Survey of India, or such other authority or agency as it may specify in this behalf, to carry out such detailed investigation for the purpose of obtaining such information as may be necessary:
       1. Ins. by Act 56 of 1972, w.e.f. 12.9.1972.
       Provided that in the cases of prospecting licences or mining lease granted by a State Government, no such authorisation shall be made except after consultation with the State Government.
 &

S.19 Prospecting licences and mining leases to be void if in contravention of Act

       Any 1[reconnaissance permit, prospecting licence or mining lease] granted, renewed or acquired in contravention of the provisions of this Act or any rules or orders made thereunder shall be void and of no effect.
       1. Substituted for "prospecting licence or mining lease" by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       Explanation: Where a person has acquired more than one 1[reconnaissance permit, prospecting licence or mining lease] 2[ * * * ] and the aggregate area covered by such 3[permits, licences or leases] as the case may be, exceeds the maximum area permissible under section 6, only that 1[reconnaissance permit, prospecting licence or mining lease] the acquisition of which has resulted in such maximum area being exceeded shall be deemed to be void.
       1. Substituted for "prospecting licen

S.20 Act and rules to apply to all renewals of prospecting licences and mining leases

The provisions of this Act and the rules made thereunder shall apply in relation to the renewal after the commencement of this Act of any prospecting licence or mining lease granted before such commencement as they apply in relation to the renewal of a prospecting licence or mining lease granted after such commencement.


S.21 penalties

       4[(1) Whoever contravenes the provisions of sub-section (1) of sub-section (1A) of Section 4 shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twenty five thousand rupees, or with both.]
       4. Substituted by Act 38 of 1999, (18.12.1999), w.e.f. 20.12.1999.
       (2) Any rules made under any provision of this Act may provide that any contravention thereof shall be punishable with imprisonment for a term which may extent to 1[one year] or with fine which may extend to 2[five] thousand rupees, or with both, and in the case of a continuing contravention, with an additional fine which may extend to 2[five] hundred rupees for every day during which such contravention continues after conviction for the first such contravention.
       1. Substituted for wo

S.22 Cognizance of offences

       No court shall take cognizance of any offence punishable under this Act or any rules made thereunder except upon complaint in writing made by a person authorised in this behalf by the Central Government or the State Government.



Legal Commentary on Section 22 of the Mines and Minerals (Development and Regulation) Act, 1957

Introduction

Section 22 of the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957, establishes a specific procedural safeguard that restricts courts from taking cognizance of offences under the Act except upon a complaint by a person authorized by the Central or State Government. This provision underscores the importance of a formal, authorized complaint process for initiating criminal proceedings related to mineral violations, ensuring that only designated authorities can trigger prosecution under the Act.

What does Section 22 Say

Section 22 explicitly states that:

"No court shall take cognizance of any offence punishable under this Act or any rules made thereunder except upon complaint in writing made by a person authorized in this behalf by the Central Government or the State Government."

This provision creates a legal bar on initiating criminal proceedings based solely on police reports or FIRs unless they are supported by a complaint from an authorized officer.

Essential Ingredients

  • Authorized Complaint: The complaint must be in writing and made by a person authorized by the Central or State Government.
  • Restriction on Court's Cognizance: Courts are barred from taking cognizance of offences under the Act without such a complaint.
  • Scope of Offences: Applies to all offences punishable under the MMDR Act or rules made thereunder.
  • Exclusion of Police Reports: Police reports or FIRs alone cannot initiate prosecution unless corroborated by an authorized complaint.

Scope of Section 22

  • Procedural Safeguard: Ensures that criminal proceedings are initiated only through a formal complaint by an authorized officer, preventing arbitrary or unwarranted prosecutions.
  • Precedence of Special Law: Reinforces that the MMDR Act's special procedure takes precedence over general criminal law, especially regarding cognizance.
  • Limits on Police Power: Police cannot directly initiate prosecution under the Act based on FIRs or investigation reports; they require a prior complaint from an authorized officer.
  • Application to Different Offences: Covers offences related to illegal mining, transportation, storage, and other violations under the Act.
  • Legal Interpretations: Courts have consistently interpreted that the prohibition applies strictly to offences under the Act, but not necessarily to offences under IPC or other laws.

Punishment for Violations

While Section 22 restricts cognizance, the Act provides penalties under Sections 21, 23, and other provisions for violations like illegal mining, transportation without permits, or contravention of rules. The actual punishment depends on the specific offence committed, but prosecution can only be initiated following the prescribed complaint process.

Legal Comments (Summary with References)

In conclusion, Section 22 of the MMDR Act emphasizes that criminal proceedings under the Act are to be initiated only upon a complaint by an authorized officer, and police FIRs or investigation reports alone cannot suffice. Courts have consistently upheld this view, quashing proceedings that violate this procedural requirement, thereby reinforcing the importance of adhering to the statutory mechanism for enforcement of mineral laws.

S.23(a) Compounding of offences

       .-(1) Any offence punishable under this Act or any rule made thereunder may, either before or after the institution of the prosecution, be compounded by the person authorised under section 22 to make a complaint to the court with respect of that offence, on payment to that person, for credit to the government, of such sum as that person may specify:
       1. Inserted by Act 56 of 1972, w.e.f. 12.9.1972.
       Provided that in the case of an offence punishable with fine only, no such sum shall exceed the maximum amount of fine which may be imposed for that offence.
       (2) Where an offence is compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded, and the offender, if in custody, shall be released fo

S.23 Offences by companies

       .-(1) If the person committing an offence under this Act or any rules made thereunder is a company, every person who at the time the offence was committed was in-charge of, and was responsible to the company for the conduct of the business of the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
       Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
       (2) Notwithstanding anything .contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of any director, manager, secretary or other officer of the company, such director

S.23(c) Power of State Government to make rules for preventing illegal mining, transportation arid storage of minerals

       .-(1) The State Government may, by notification in the Official Gazette, make rules for preventing illegal mining, transportation and storage of minerals and for the purposes connected therewith.
       3. Inserted by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
       (a) establishment of check-posts for checking of minerals under transit;
       (b) establishment of weighbridges to measure the quantity of mineral being transported;
       (c) regulation of mineral being transported from the area granted under a prospecting licence or a mining lease or a quarrying licence or a

S.23(b) Power to search

       If any gazetted officer of the Central or a State Government authorised by the Central Government 2[or a State Government, as the case may be,] in this behalf by general or special order has reason to believe that any mineral has been raised in contravention of the provisions of this Act or the rules made thereunder or any document or thing in relation to such mineral is secreted in any place 3[or vehicle], he may search for such mineral, document or thing and the provisions of Section 100 of the Code of Criminal Procedure, 1973 (No.2 of 1974) shall apply to every such search.]
       2. Inserted by Act 25 of 1994, w.e.f. 25.1.1994.
       3. Inserted by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.



Legal Commentary on Section 23B of the Mines and Minerals (Development and Regulation) Act, 1957

Introduction

The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) is a central legislation enacted to provide for the development and regulation of mines and minerals under the control of the Union of India. Section 23B of the Act deals with the power to search, serving as an important investigative mechanism to enforce compliance with mining laws and curb illegal mining activities.

What Section Says

Section 23B of the MMDR Act, 1957 confers power to search upon authorized officers. This section enables officers to conduct searches for detecting violations under the Act and the rules framed thereunder. The provision works in conjunction with Section 23C, which empowers State Governments to make rules for preventing illegal mining, transportation, and storage of minerals.

Essential Ingredients

Based on the available sources:

  1. Authorization: The power is exercised by officers duly authorized under the Act.
  2. Purpose: To detect and prevent violations of the MMDR Act and related rules.
  3. Scope: Encompasses search operations related to mining activities, transportation, and storage of minerals.
  4. Operational Linkage: Section 23B operates alongside Section 23C which provides rule-making power to State Governments for preventing illegal mining.

Scope of Section

The scope of Section 23B extends to:

  • Search and seizure operations in cases of suspected illegal mining
  • Detection of violations under the Act and rules made thereunder
  • Supporting State Government rules framed under Section 23C for preventing illegal mining, transportation, and storage of minerals
  • Enforcement mechanism to complement the penal provisions of the Act

The provision does not prescribe a separate punishment; rather, it is an investigative tool to detect offenses punishable under other sections of the Act.

Punishment for Section

Section 23B itself does not prescribe punishment. The penal consequences flow from other provisions:

  • Section 21: Offenses under the Act are punishable with imprisonment up to five years and fine up to five lakh rupees per hectare of the area involved in illegal mining
  • Section 23: Provides for compounding of offenses, either before or after institution of prosecution
  • The punishment has been made more stringent over time, with imprisonment increased from 2 years to 5 years and fines from Rs. 25,000 per hectare to Rs. 5 lakh per hectare

Legal Comments

  • Power to Search – Section 23B empowers authorized officers to conduct searches for detecting violations under the MMDR Act, 1957, serving as a critical enforcement tool.

  • Preventive Framework – Section 23B works in conjunction with Section 23C, which empowers State Governments to frame rules for preventing illegal mining, transportation, and storage of minerals.

  • Regulatory Objective – The MMDR Act was enacted to provide for the development and regulation of mines and minerals under the control of the Union, with Section 23B forming part of the enforcement machinery.

  • Stringent Penalties – Under Section 21 of the Act, violations are punishable with imprisonment up to five years and fine up to five lakh rupees per hectare of the area involved.

  • Historical Enhancement – Penalties under the Act have been significantly increased: imprisonment enhanced from 2 years to 5 years and fines from Rs. 25,000 per hectare to Rs. 5 lakh per hectare to curb illegal mining.

  • Compounding Provision – Section 23 allows any offense punishable under the Act or rules to be compounded by the authorized person, either before or after the institution of prosecution.

  • Show-Cause Notices – Issuance of a show-cause notice under the Act does not mean that alleged contraventions or violations have been committed by the noticee; it remains an allegation at that stage. ["State of Andhra Pradesh VS Southern Rocks and Minerals Pvt. Ltd. - 2021 0 Supreme(AP) 915"]

  • External Dictation Principle – Show-cause notices issued as directed by an appellate or revisional authority constitute a clear case of exercise of powers based on external dictation/direction, rendering the action invalid. ["State of Andhra Pradesh VS Southern Rocks and Minerals Pvt. Ltd. - 2021 0 Supreme(AP) 915"]

  • Arbitrary Refusal of Permits – Refusal to issue dispatch permits to mining lessees based on show-cause notices alone is arbitrary and illegal, as per judicial interpretation. ["State of Andhra Pradesh VS Southern Rocks and Minerals Pvt. Ltd. - 2021 0 Supreme(AP) 915"]

  • Writ Jurisdiction – Despite arguments that writ petitions ought not to be entertained when only show-cause notices are issued, courts may exercise discretion under Article 226 to examine the validity of such notices. ["State of Andhra Pradesh VS Southern Rocks and Minerals Pvt. Ltd. - 2021 0 Supreme(AP) 915"]

  • Despatch Permit Control – Rules 35 and 35-A of the A.P. Mining and Minerals Concession Rules, 1966 govern the issuance of despatch permits, and show-cause notices contrary to these rules are invalid. ["State of Andhra Pradesh VS Southern Rocks and Minerals Pvt. Ltd. - 2021 0 Supreme(AP) 915"]

  • Illegal Mining Measures – Section 23C of the MMDR Act facilitates end-to-end national-scale accounting of all minerals, reducing the scope for illegal mining.

  • State Rule-Making Power – The Act empowers State Governments to make rules under Section 23C for preventing illegal mining, transportation, and storage of minerals.

  • Prosecution Protocol – In case of serious violations, mining operations may be suspended, and failing compliance, prosecution is launched under the Act.

  • IBM Intervention – The Indian Bureau of Mines (IBM) may suspend mining operations in cases of serious violations under the MMDR Act.

  • Offences by Companies – Section 23 of the Act specifically addresses offenses committed by companies, ensuring corporate accountability under mining regulations.

  • Lease Duration Amendment – Amendments to the Act have fundamentally altered concession timelines, establishing a standard 50-year lease duration for non-coal and non-atomic minerals.

  • License Necessity – The MMDR Act emphasizes the necessity for licenses and leases for undertaking reconnaissance, prospecting, and mining operations.

  • Union Control – The Act places mines and minerals under the control of the Union Government, ensuring centralized regulation of mineral resources.

S.24 Power of entry and inspection

       .-(1) For the purpose of ascertaining the position of the working, actual or prospective, of any mine or for any other purpose connected with this Act or the rules made thereunder, any person authorised by the 1[Central Government or a State Government] in this behalf, by general 2[* * *] order, may-
       1. Substituted for "Central Government" by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       2. Words "or special" omitted by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.
       (a) enter and inspect any mine;
       (b) survey and take measurements in any such mine;
       (c) weigh, measure or take measurements of the stocks of minerals lying at any mine;
       (d) examine any document, b

S.24(a) Rights and liabilities of a holder of prospecting licence or mining lease

       .-(1) On the issue of a 2[reconnaissance permit, prospecting licence or mining lease] under this Act and the rules made thereunder, it shall be lawful for the 3[holder of such permit, licence or lease], his agents or his servants or workmen to enter the lands over which 4[such permit, lease or licence had been granted] at all times during its currency and carry out all such 5[reconnaissance, prospecting or mining operations] as may be prescribed:
       1. Inserted by Act 37 of 1986, w.e.f. 10.2.1987.
       2. Substituted for "prospecting licence or mining lease" by Act 38 of 1999, (18.12.1999), w.e.f. 20.12.1999.
       3. Substituted for "holder of such licence or lease" by Act 38 of 1999, (18.12.1999), w.e.f. 20.12.1999.
       4. Substituted for "such lease or licence had

S.25 Recovery of certain sums as arrears of land revenue

       (1) Any rent, royalty, tax, fee or other sum due to the government under this Act or the rules made thereunder or under the terms and conditions of any 2[reconnaissance permit, prospecting licence or mining lease] may, on a certificate of such officer as may be specified by the State Government in this behalf by general or special order, be recovered in the same manner as an arrear of land revenue.
       2. Substituted for "prospecting licence or mining lease" by Act 38 of 1999, (18.12.1999), w.e.f. 20.12.1999.
       8[(2) Any rent, royalty, tax, fee or other sum due to the government either under this Act or any rule made thereunder or under the terms and conditions of any 1[reconnaissance permit, prospecting licence or mining lease] may, on a certificate of such officer as may’ be specified by the State Government in this behalf by general or spec

S.26 Delegation of powers

       (1) The Central Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act may, in relation to such matters and subject to such conditions, if any, as may be specified in the notification be exercisable also by -
       (a) such officer or authority subordinate to the Central Government; or
       (b) such State Government or such officer or authority subordinate to a State Government; as may be specified in the notification.
       (2) The State Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act may, in relation to such matters and subject to such conditions, if any, as may be specified in the notification, be exercisable also by such officer or authority subordinate to the State Government as may be

S.27 Protection of action taken in good faith

No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or intended to be done under this Act.


S.28 Rules and notifications to be laid before Parliament and certain rules to be approved by Parliament

       2[(1) Every rule and every notification made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.
       2. Substituted by Act 56 of 1972, for sub-sec. (1), w.e.

S.29 Existing rules to continue

All rules made or purporting to have been made under the Mines and Minerals (Regulation and Development) Act, 1948, (53 of 1948) shall, in so far as they relate to matters for which provision is made in this Act and are not inconsistent therewith, be deemed to have been made under this Act as if this Act had been in force on the date on which such rules were made and shall continue in force unless and until they are superseded by any rules made under this Act.


S.30(a) Special provisions relating to mining leases for coal granted before 25th October, 1949

       Notwithstanding anything contained in this Act, the provisions of sub-section (1) of Section 9 and of sub-section (1) of Section 16 shall not apply to or in relation to mining leases granted before the 25th day of October, 1949, in respect of coal, but the Central Government, if it is satisfied that it is expedient so to do, may, by notification in the Official Gazette, direct that all or any of, the said provisions (including any rules made under Sections 13 and 18) shall apply to or in relation to such leases subject to such exceptions and modifications, if any, as may be specified in that or in any subsequent notification.]
       3. Inserted by Act 15 of 1958, w.e.f. 15.5.1958.


S.30 Power of revision of Central Government

       The Central Government may, of its own motion or on application made within the prescribed time by an aggrieved party, revise any order made by a State Government or other authority in exercise of the powers conferred on it by or under this Act, 2[with respect to any mineral other than a minor mineral].
       2. Inserted by Act 25 of 1994. w.e.f. 25.1.1994.


S.31 Relaxation of rules in special cases

       The Central Government may, if it is of opinion that in the interests of mineral development it is necessary so to do, by order in writing and for reasons to be recorded, authorise in any case the grant, renewal or transfer of any 4[reconnaissance permit, prospecting licence or mining lease], or the working of any mine for the purpose of searching for or winning any mineral, on terms and conditions different from those laid down in the rules made under Section 13.
4. Substituted for "prospecting licence or mining lease" by Act 38 of 1999, (18.12.1999) w.e.f. 20.12.1999.


S.32 Amendment to Act 53 of 1948

[Repealed by Repealing and Amending Act, 1960 (58 of 1960)], (w.e.f. 26.12.1960.)


S.33 Validation of certain acts and indemnity

All acts of executive authority done, proceedings taken and sentences passed under the Mines and Minerals (Regulation and Development) Act, 1948 (53 of 1948), with respect to the regulation of mines and the development of minerals during the period commencing on the 26th day of January, 1950, and ending with the date of commencement of this Act by the government or by any officer of the government or by any other authority, in the belief or purported belief that the acts, proceedings or sentences were being done, taken or passed under the said Act, shall be as valid and operative as if they had been done, taken or passed in accordance with law, and no suit or other legal proceeding shall be maintained or continued against any person whatsoever, on the ground that any such acts, proceedings or sentences were not done, taken or passed in accordance with law.


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