G.R. Dt. 23rd January, 2019 – Department of Revenue and Forest – Sub- Procedure for the Auction of Minor Minerals Lease in Maharashtra
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Procedure for the Auction of Minor Minerals Lease
Government of Maharashtra
Department of Revenue and Forest
Government Resolution No:- GauKhaNi-10/1118/Pra.Kra.448/Kha
Mantralaya, Mumbai-400 032
Dated:- 23/01/2019
Vide:-
Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013
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Preface:-
Rule 9 of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013 provides for the sanction of a Mining Lease for more minor minerals by public auction of any land vesting in the Government or any Public Authority or any land of a private land holder or occupant, if he is willing to let out his land to other person for the purpose of mining and such land holder or occupant is ready to give Consent Letter in writing to the District Collector, in that regard. The Rules also provide that the Procedure of Public Auction of a Mining Lease and the Terms and Conditions, thereof, shall be such as may be specified by the Government by an Order, from time to time. Accordingly, the Government contemplated the matter of laying down the Procedure for the Auction of a Mining Lease for minor minerals.
Government Resolution:-
As per the provisions of Rule 9 of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013, the following Procedure and Terms and Conditions are hereby prescribed for the auction of a Mining Lease of Minor Minerals other than sand (Excluding Notified Minor Minerals):-
a. Action to be taken before the Auction of Mining Lease of Minor Minerals:-
(1) As per the provisions of Rule 9 of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013, District Collectors shall denote the areas fit for mining of minor minerals or the probable areas, thereof, by marking them.
(2) District Collectors shall obtain Geological Technical Report of the marked areas fit for mining from a person holding technical qualifications and experience specified in Rule 15 of Minor Minerals Concession Rules, 2016.
(3) The Director of the Directorate of Geology and Mining or the Competent Authority authorised by him shall certify the Geological Technical Report specified in a.(2) above and shall issue a Certificate regarding find of a minor mineral.
b. Recommendations of Gram Sabha for the Extraction of Minor Minerals:-
(1) Before auction of a Mining Lease, Recommendation of the concerned Local Self-Government Body should be obtained as per the provisions of Rule 10(4) of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013. An auction should be conducted only after obtaining such Recommendation.
(2) It shall be brought to the attention of the Village Panchayat that as per provisions of the Pradhan Mantri Mining Areas Welfare Scheme of the Central Government funds would be payable for the Development works in proportion to the revenue derived from the areas of the concerned Local Self-Government Body.
(3) All concerned persons should be cautioned that if any unlawful extraction of minor minerals is discovered within the limits of a Local Self-Government Body, which has not permitted auction of the Mining Lease and actual participation of the Office bearers in such unlawful extraction is noticed, then such fact shall be verified by a Sub-Divisional Officer and action shall be initiated against such office bearers as per the provisions of the statute pertaining to the Local Self-Government Body.
c. Fixation of Upset Price:-
The Rate of Royalty for each Brass fixed by the Government under the provisions of Rule 46(1) of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013, from time to time, should be taken as the Upset Price. However, for every subsequent auction following the first auction of the Mining Lease, the prevailing amount of Royalty or the per unit Brass Amount fetched by the Mining Lease in the last auction, whichever being more, should be taken as the Upset Price.
d. Requisite Eligibility for the Auction Holder:-
(1) Only Auction Holders who have proof regarding regular payment of Income Tax, TIN No. of Sale Tax Department and GST No. can participate in auction.
(2) Persons intending to submit an Auction Tender would be required to pay the Tender Application Fees of Rs. 5,000/- by cash.
(3) A person taking part in the Auction would be required to pay an Earnest Money Deposit of Rs. 5,00,000/- (Rupees Five Lakh Only) by RTGS.
e. Procedure for the Auction of a Mining Lease:-
(1) Auction of Mining Lease for minor minerals in the State should be conducted by E-Tender/E-Auction mode.
(2) The maximum duration for the Auction of a Mining Lease shall be five years and this period shall commence from the date of execution of Agreement with the successful Auction Holder.
(3) An Advertisement for the Auction of a Mining Lease should be published in two leading newspapers of the district, minimum 15 days in advance of the Auction and the copies, thereof, should be displayed on the Notice Boards in the offices of Divisional Commissioners, District Collectors, as well as all Field Revenue Officers in the district. Furthermore, the said Advertisement should also be published on the website of the District Collector’s office, as well as the Government.
An advertisement for the auction of a Mining Lease should boldly mention the name of the concerned Mining Lease, place of the Mining Lease, Survey Number, area of the Mining Lease, per Brass Upset Price and the duration of Mining Lease etc. Moreover, the persons interested in taking part in auction should be furnished the Geological Technical Report in terms of Condition No. a.(3).
(4)As far as possible, auction of all Mining Leases in a District should be conducted on the same day at the District Head Quarters. If auction proceedings for all Mining Leases cannot be completed on the day of auction, the proceedings should be resumed on the next consecutive day in the morning during office hours. Auction of all Mining Leases in a District should be conducted under the personal control and supervision of the concerned District Collector or the Additional District Collector. District Collectors or Additional Collectors cannot assign this work to any other officer, under any circumstances, whatsoever.
(5) Each Person/Body interested in participating in the Auction Process and submitting Tender would be required to pay the Earnest Deposit by RTGS while submitting Tender.
(6) If any complaints/objections/suggestions are received vis-à-vis the proposed auction, the District Collector/Additional District Collector should conduct an inspection/inquiry and if he is convinced that there are substantial grounds for not proceeding with the auction, the auction process should be stayed.
(7) In order to make the Tender Process competitive minimum three bidders are required. If less than three bidders take part, the concerned Competent Officer should initially grant minimum one week’s extension. Despite such extortion, if less than three bidders are noticed to have taken part, second extension of one week should be granted. If even after this, response of less than three Tenders is received, the Competent Officer should start the E-Auction Process.
(8) If an offer lower than the Upset Price fixed for a Mining Lease in the auction is received or no offer at all is received, the detailed reasons, thereof, should be recorded and the Mining Lease should be re-auctioned.
(9) An auction for the Mining Lease should start with a Bid Price higher than the Upset Price fixed for per unit Brass.
(10) The decision as to whether the offer of highest bid made in an auction/tender is to be accepted or rejected is to be made by the Additional Collector/District Collector and the said decision will have to be communicated to the concerned persons on the day of auction, itself. If a decision rejecting the tender is made, the detailed reasons, thereof, should be recorded.
(11) The Earnest Money Deposit (EMD) paid by the persons who have taken part in the auction, but whose offer/tender has not been accepted, should be refunded to them as soon as the auction proceedings are concluded.
(12) The auction holder whose highest bid offer has been accepted would be obliged to deposit with the Government an amount equal to 15 percent of the estimated units of extraction specified in the Geological Technical Report at the rate of per brass bid quoted by him towards Advance Royalty, within seven days of the date of auction. The Earnest Money deposited with the Government prior to auction, should be adjusted against the amount to be paid towards such Advance Royalty.
Before completion of extraction of minor minerals in proportion to the amount deposited in advance towards Royalty, the auction holder at the Rate of per brass bid quoted by him would be required to deposit with the Government the Royalty on minor minerals to be extracted from the Mining Lease as stipulated in Rule 46(1)(Two) and (Three) of Chapter Three of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013.
(13) The expenditure incurred on the Geological Technical Reports should be defrayed by the District Collector from office expenditure.
f. Action to be taken after the Auction:-
(1) District Collectors should issue Letters of Intent to the successful auction holders within 15 days of the date of auction. District Collectors should boldly mention in the Letter of Intent that as per the provisions of the EIA Notification, 2006 of the Ministry of Environment and Forest of the Central Government, Dt. 14th September, 2006 and the Notification in the Ministry of Environment, Forest and Climate Change, Dated 15/01/2016, it would be mandatory to secure an Environmental Sanction and a Mining Plan as per the provisions of Rule 20 of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013. A successful Auction Holder will have to obtain a duly prepared Mining Plan from a Competent Agency within 120 days of the date of Letter of Intent. Moreover, it would be necessary to furnish the Environmental Sanction, other necessary No-Objection Certificates and other documents mentioned in the Letter of Intent by the District Collector, to the office of District Collector.
If a successful Auction Holder requires a period in excess of 120 days for the compliance of the aforementioned documents and the District Collector is satisfied that the Auction Holder is not responsible for the excess period, he may grant a reasonable extension of time to the concerned person for such compliance even after the lapse of the above period of 120 days.
(2) District Collectors shall pass orders sanctioning the Mining Lease in favour of the concerned Auction Holders within 15 days of the compliance of all necessary documents specified in Sr. No. f.(1) above by the successful Auction Holders and shall also take necessary steps for the execution and Registration of the Mining Lease.
(3) The Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013 provide for the revision of Royalty once in 3 years. In view of these provisions, a clear condition should be incorporated in the Agreement to the effect that in the event of revision of Rates of Royalty of the minor minerals, the Mining Lease Holder would be obliged to deposit with the Government, the said per Brass amount of Royalty or the per Brass amount for the minor mineral fixed during the auction of Mining Lease, whichever being more.
(4) It should be clearly mentioned in the Agreement that the Mining Lease Holder would be obliged to pay the taxes/fees prescribed by the Zilla Parishad, Panchayat Samiti, as well as the Government, besides such amount of contribution as may be fixed by the Government, from time to time, for the District Mineral Foundation.
(5) A Mining Lease Holder would be required to deposit with the District Collector/Additional Collector, a Security Deposit at the rate of Rupees 2,50,000/- per hectare for the appropriate compliance of the Terms and Conditions set out in the Environmental Sanction, as well as the Terms and Conditions of the auction, at the time of execution. If all Terms and Conditions are appropriately complied with during the term of the auction, the said amount of Security Deposit should be refunded to the Mining Lease Holder on the completion of term of auction. In the event of non-compliance of the Terms and Conditions, the Security Deposit should be forfeited.
(6) The Mining Lease Holder should be handed over the actual possession of the Mining Lease within seven days of the date of sanction of a Mining Lease. All concerned parties should be cautioned that if the Auction Holder is not handed over possession of the Mining Lease within seven days of the date of sanction of a Mining Lease, Disciplinary Action would be initiated against the responsible officers/employees.
(7) While handing over possession of a Mining Lease to the Auction Holder, as well as recovering its possession, a Panchanama should be drawn in the presence of the Tahsildar or District Mining Officer by measuring mining works by means of an ETS Machine. District Collectors/Additional Collectors should satisfy themselves that while handing over possession or recovering it by this mode, mining work is duly measured by an ETS Machine.
(8) The concerned Tahsildar/District Mining Officer shall carry out measurement of a Mining Lease at the interval of minimum six months in the presence of the Mining Lease Holder. A simple interest @ of 15 percent per annum shall be charged from the Mining Lease Holder on the delayed payment of Royalty and other mining dues as per the Terms and Conditions of a Mining Lease under Rule 46 of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013 from the expiration of the sixtieth day of the date fixed by the Government for the payment of Royalty and other mining dues until the time such Royalty and other mining dues are duly paid.
(9) At the time of execution of an Agreement with a successful Auction Holder, Stamp Duty should be charged on the total amount which is worked out after taking into consideration the per brass price quoted by the successful auction holder, as well as the availability of minor minerals as per the Mining Plan. If the total amount, so worked out, is up to Rs. 10 Lakh, a stamp duty equal to 0.1 per cent of such amount or Rs. 100/-, whichever being more, should be charged. Moreover, if such amount exceeds Rs. 10 Lakh, a Stamp Duty equal to 0.2 percent of the amount should be charged.
(10) A Mining Lease for the purpose of mining shall be sanctioned on the condition of paying to the Government the Royalty, Fixed Rent, Surface Rent, Water Charges, as well as the Lease Amount payable to the Government and thereupon the Lease Holder shall have the right of extracting minor minerals and disposing off the minor minerals, so extracted.
The Lease Amount includes Royalty, Fixed Rent, Surface Rent, Water Charges, Fees payable to Zilla Parishad/Panchayat Samiti, Non-Agricultural Charges and the amount of contribution towards District Mineral Foundation.
(11) Each Bar coded Transit Receipt would be required to have the signature and stamp of the District Mining Officer. An Auction Holder shall be entitled to carry out extraction of as many Brass of minor minerals as the amount of per Brass minor minerals paid to the Government as per his auction bid and accordingly, the Bar coded Transit Passes shall be issued to the Auction Holder.
g. Action to be taken in the event of violation of Terms/Conditions by the Auction/Permit Holder:-
(1) If a Mining Lease cannot be auctioned despite repeated auction of the said Mining Lease on account of inter-se collusion by Auction Holders due to which no Auction Holder comes forward to offer his bid, such Auction Holders who defraud the Government of its revenue, as well as the Auction Holders who commit the offence of illegal extraction and transportation should be blacklisted for the whole of State.
(2) It should be ascertained as to whether a vehicle driver transporting a minor mineral has a valid Bar Coded Transit Pass or not. If at the time of such inspection, the concerned vehicle driver is not found in possession of a valid Bar Coded Transit Pass or the designated period of the Transit Pass has already expired then the extraction/transportation of minor minerals should be treated as unlawful and action should be initiated against such activity under Sections 48(7) and 48(8) of the Maharashtra Land Revenue Code, 1966.
(3) If the concerned Mining Lease Holder is found guilty in case of unlawful extraction and transportation, action should be initiated against him as per the prevailing Rules.
Action against the concerned persons as per the prevailing Rules ought to include such action, as the registration of offence under Sections 34, 114, 379, 392, 393, 394, 396, etc. of the Indian Penal Code, penal action as per the provisions of Section 48(7) of the Maharashtra Land Revenue Code, 1966, forfeiture of the machinery used for the extraction of minor minerals and the vehicles used for transportation under the provisions of Section 48(8) thereof, forfeiture of the minor mineral which is subject matter of the unlawful extraction.
Moreover, while taking action against unlawful extraction or transportation of minor minerals, any incidents of attack against the Revenue officers/employees are ever noticed and organised crimes, too, are found at such places, then invocation of a stature like MCOC Act for taking action against the Organised Crime, too, should be considered.
(4) As per the provisions of clause (i) of the Government Circular in the Department of Revenue and Forest, bearing No. GauKhaNi-10/0316/Pra.Kra.204/Kha, Dated 14/06/2016, Market Rates of minor minerals should be fixed and in cases of unlawful extraction and transportation of minor minerals, amount of fine should be computed, accordingly. Before taking penal action in a given case, Notice should be issued to the concerned parties and after giving them an opportunity of hearing self-clear orders should be passed, as per the provisions of the statute.
` (5) Mining Lease Holders would be obliged to comply with the Terms and Conditions of the Environmental Sanction, as well as the provisions of the Environment related Rules. In the event of violation of such provisions, they shall be liable to be proceeded against as per the provisions of the Environment (Protection) Act, 1986.
(6) In the event of any harm/damage caused to any Government or private property during the course of extraction or removal of a minor mineral, the responsibility for making recompense, therefor, shall rest upon the auction holder. Such harm/damage shall be computed by the District Collector/Additional Collector and his decision in that regard shall be final and such amount shall be liable to be recovered from the concerned Auction Holder as arrears of land revenue. A condition to that effect, should be specifically incorporated in the Agreement.
(h). District Mineral Foundation Fund:-
The Central Government has made a provision in Section 9B of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, providing for the establishment of a District Mineral Foundation in each District affected by mining activities by a Notification to be issued by the State Government in this regard. Accordingly, under Government Notification in the Department of Industries, Energy and Labour, bearing No. MDF-0615/51/Pra.Kra.34/Udyog-9, Dated 01.09.2016, District Mineral Foundations have been set up and a provision has been made for the payment of an amount equal to 10 percent of the Royalty amount to be paid by all types of minor mineral Mining Lease Holders, permit Holders, as well as Sand Auction Holders to the Government towards contribution for the District Mineral Foundation. Accordingly, 10 percent on the Royalty amount paid to the Government would be payable in advance towards contribution for the District Mineral Foundation.
(i) General Terms and Conditions for the Auction of a Mining Lease:-
(1) All Terms and Conditions set out in the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013, as well as the Terms and Conditions stipulated mainly in Rule 46, Rule 30 – Financial Undertaking, as well as the provisions of Rules 51, 52, 53, 54 and 57 would be applicable.
(2) A Mining Lease Holder would be required to secure compliance of such matters, as modification of a Mining Plan as per the provisions of Rules 21, 22, 23, 24, 25, 26, 27, 28 and 29 of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013, submission of a Mining Scheme, etc.
(3) If an Auction Holder carries out extraction outside the aggregate sanctioned and marked area, such extraction shall be treated as unlawful and the Mining Lease shall be revoked and all the amounts deposited with the Government shall stand forfeited.
(4) Under the provisions of Rule 45 of the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013, no Auction Holder can transfer his Mining Lease to any other person without prior permission of the Government. Moreover, the Auction Holder cannot permit any other person to conduct the Mining Lease sanctioned to him nor can he induct a partner after the auction.
(5) The concerned Tahsildar or Sub-Divisional Officer or the District Mining Officer would be obliged to conduct an inspection at the interval of every three months, in order to ascertain as to whether the Terms and Conditions stipulated in the Agreement, as well as Environmental Sanction are complied by the Mining Lease Holder or not. Accordingly, District Collectors/Additional Collectors should draw up a Time Table at the beginning of the year, which would ensure minimum one inspection of each Mining Lease at the interval of three months and make arrangements to ensure scrupulous implementation, thereof.
(J) Monitoring:-
Additional Collectors/District Collectors should set up separate Flying Squads/Vigilance Teams comprising Police, Transport and Revenue Officers at Tahsil and District Level in order to ensure effective control over the unlawful extraction/transportation of minor minerals and it shall be the collective responsibility of such squads to check unlawful extraction and transportation within their operational areas.
(2) Whenever any unlawful activities/incidents of transportation are reported from the operational areas of any Revenue Officers/Staff, a strict inspection should be conducted to find out whether such officers/employees were responsible therefor. If such inspection reveals complicity of such local officers/employees in the unlawful extraction or that they had not exercised adequate control over the unlawful extraction/transportation, accountability should be fixed upon such officers/employees and Disciplinary Action should be initiated against them as per the prevailing Rules.
(K) Terms and Conditions of the Public Notice to be published at the time of Auction of Mining Lease:-
(1) If the Bid amounts quoted in the auction, as well as the offer amount received under the Tender are not higher than the Upset Price, such Mining Lease shall be re-auctioned within 10 days.
(2) Every person intending to take part in the auction or submitting a Tender will have to be deposit the amount of Security Deposit two days in advance of the commencement of auction/at the time of submitting his Tender Application in the office of District Collector by RTGS. The amount of Auction Holder whose highest Bid/Tender is accepted will be adjusted against the amount of auction to be paid by him under the Rules. Security Deposit amounts of Auction Holders whose Bids/Tenders are not accepted, will be promptly refunded to them upon conclusion of auction.
(3) Whenever an auction is revoked on account of irregularities committed by Auction Holders such Mining Lease will be auctioned anew. If the Re-auction of a Mining Lease of which the auction was revoked in this manner, fetches a price lower than the price of the previous auction, then the amount of difference shall be recovered from the predecessor Auction Holder as arrears of land revenue. However, if the Re-auction fetches higher (excess) price than the previous price, then the predecessor Auction Holder will not have any claim on the same.
(4) The responsibility of carrying out extraction of minor minerals in the delegated areas under the auction and during the period specified in the Agreement with the permitted implements shall rest upon the Auction Holder.
(5) An Auction Holder must not harm the Nistar Rights of the villagers.
(6) If there is an occurrence of accident during the course of extraction or transportation of minor minerals the Auction Holder should promptly report the accident to the nearest Police Station.
(7) An Auction Holder would be required to maintain a Transit Receipt for the transportation of minor minerals duly signed and certified by the Competent Authority viz. District Mining Officer with every vehicle, every time a minor mineral is transported. The Auction Holder should provide a Transit Receipt with the vehicle carrying a minor mineral from the site of auction only equal to the carrying capacity of such vehicle. If a vehicle is found to carry excess load the entire load of minor mineral in the vehicle shall be treated as illegal and penal action shall be initiated under the Rules, besides action under the Motor Vehicles Act for carrying excess load beyond capacity. The minor mineral seized during penal action shall be auctioned off.
An Auction Holder would be required to maintain a Daily Accounting Register for the extraction, sale and transportation of minor mineral made by him. It would be mandatory to provide such Register and other account related papers at the site of inspection for the inspection to be conducted by the District Mining Officer, Mining Inspector, Revenue Officer, as well as District Collector and the Inspecting Officers from the Directorate of Geology and Mining.
(8) All Accounts related and other papers pertaining to the extraction, sale and transportation of a minor mineral must be kept at the site designated under the auction. It would be necessary to furnish such accounts and other papers for the inspection of the concerned Revenue Officers, Mining Officers and the Officers subordinate to the Directorate of Geology and Mining, Maharashtra State, Nagpur.
(9) An Auction Holder would be required to comply with the Terms and Conditions as stipulated in the Rules, as well as the applicable Rules under the Minor Minerals Extraction Rules (Rules applicable to the concerned Department) and the applicable Rules under the Maharashtra Land Revenue Code.
(10) If an unlawful stock of minor minerals is seized auction will be initiated under Sections 48(7) and 48(8) of the Maharashtra Land Revenue Code, 1966.
This Government Resolution has been made available on the website of the Government of Maharashtra viz. www.maharashtra.gov.in and its Computer Code Number is 201901231717032719. This Resolution is attested and issued under Digital Signature.
By the order and in the name of the Governor of Maharashtra,
Rajendra Kshirsagar – Digital Signature
[Rajendra Kshirsagar]
Joint Secretary to the Government
To,
[1] The Secretary to the Hon’ble Governor (By Letter)/Private Secretaries to the Hon’ble Chief Minister/Hon’ble Deputy Chief Minister/Hon’ble Ministers/Hon’ble Ministers of State, Mantralaya, Mumbai,
[2] All Mantralaya Departments,
[3] All Divisional Commissioners,
[4] All District Collectors,
[5] All Sub-Divisional Officers,
[6] All Tahsildars,
[7] The Director, the Directorate of Geology and Mining, Nagpur,
[8] The Director, the Directorate of Ground Water Survey and Development Agency, Maharashtra State, Pune,
[9] The Principal Chief Conservator of Forests, Nagpur,
[10] The Accountant General-1, Maharashtra State (Accounts & Entitlement), (Audit), Mumbai,
[11] The Accountant General-2, Maharashtra State (Accounts & Entitlement), (Audit), Nagpur,
[12] All Desks in the Department of Revenue and Forest, Mantralaya, Mumbai-400 032,
[13] Select File “Kha” Desk, Department of Revenue and Forest, Mantralaya, Mumbai-400 032.
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[Text Translated by Adv. Prakash Manohar Chalke
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