Section 31 of Andhra Pradesh Minor Mineral Concession Rules, 1966

31. Conditions of permit or lease. - Every quarry lease shall, in addition to such conditions as may be specifically stipulated in each case, be subject to the following conditions, viz - (i) [***] [Omitted by G.O.Ms.No. 226, I & C, date 25-3-1977.] (ii) [***] [Omitted by G.O.Ms.No. 226, I & C, date 25-3-1977.] (iii) The lessee shall pay annually the land assessment, if any, of the area under lease or permit ; (iv) [ The lessee shall pay the advance dead rent at the time of execution of the lease deed and the annual dead rent for the subsequent years, one month in advance every year and all other sums payable to the Government in any Government Treasury and file the challans to the Assistant Director concerned ;] [Substituted by G.O.Ms.No. 238, I & C, date 9-7-1992.] (v) The Deputy Director, shall be the competent authority to assess and fix, in consultation with the concerned departments, any compensation payable by the lessee for any loss, injury or damage done to the person concerned or to his property. (vi) The lessee shall, [***] [Omitted by G.O.Ms.No. 147, I & C, date 5-3-1982.] effect 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 corner or angle in the line of the boundary of the area under lease or permit and at intervals of not more than 183 metres along with the boundary, delineated in the plan attached to the area under lease or permit ; (vii) The lessee shall commence quarrying operations within two months from the date of the grant and shall thereafter carry on such operations effectively in a proper, skillful and workman like manner, as regards prevention of waste within the quarry and shall not work it in such a manner as may prove dangerous to human life or cattle and shall, if so directed by the Assistant Director, cause such quarry or any part thereof to be securely fenced to the satisfaction of the Assistant Director. (viii) The lessee shall without delay send to the Assistant Director a report of any accident involving the death or injury to any person which may occur in or around the quarry and shall observe all rules for the time being in force regulating the working of quarries; (ix) The lessee shall not assign, sublet, transfer or otherwise dispose of the area under lease or permit without obtaining the previous sanction in writing of the Deputy Director ; [A quarry lease granted in public auction for sand is not open for transfer ;] [Added by G.O.Ms.No. 3, date 3-1-1991, pub. in A.P. Gaz. No. 1, date 8-1-1991.] [(ix a) : The holder of a lease, with the prior approval of the Deputy Director of Mines & Geology concerned, may be permitted to transfer such lease for captive purpose in favour of the existing mineral based industry or to a new mineral based industry with a condition that no permits will be issued till Commercial Operation Date (CoD) is declared by the competent authority for mineral processing and value addition. [Inserted by Notification No. G.O.Ms. 183, dated 28.12.2017 (w.e.f. 31.2.1997).] The application for transfer of lease shall be made to the Assistant Director of Mines & Geology concerned in Form-R, alongwith the non-refundable application fee of Rs. 10,000/- (Rupees ten thousand only) alongwith the copies of certificate issued by the competent authority showing the evidences for ownership and running of the industry. The transfer lease deed shall be executed as per the provision under Rule 13(i). The permission for transfer of lease to the mineral based industry holder shall be accorded on payment of an amount equivalent to ten times of dead rent per hectare or the amount equivalent to the dead rent per hectare for the unexpired period of lease, whichever is higher. Such transfer shall be made only in favour of persons/entities owning the industry which would be consuming the mineral. (ix b):-The lessee, with the prior approval of the Deputy Director of Mines & Geology concerned, may be permitted to change from an individual/sole proprietorship firm into partnership firm by adding new partners on registering itself as a Partnership Firm under the Indian Partnership Act, 1932 and the original lessee shall continue to hold 51% of his share and voting rights in the partnership firm so created, till expiry of lease or subsequent renewal lease period. The inter-se ratio of shares among original partners shall not be changed during such a transfer. The lessee shall register itself as required under the Indian Partnership Act 1932 and furnish the registration certificate to the Deputy Director of Mines & Geology concerned, within 60 days from the date of such changes made. (ix c):- In case of lease granted to a partnership firm, such firm, with prior approval of the Deputy Director of Mines & Geology concerned, may be permitted to add new partners into the firm and the original partners of the firm together shall continue to hold 51% of their share and voting rights in tine reconstituted firm till expiry of lease or subsequent renewal lease period. The inter-se ratio of shares among original partners shall not be changed during such a transfer. The lessee firm shall effect such changes in the constitution of the firm as required under Indian Partnership Act 1932 and intimate the same to the Deputy Director of Mines Sc Geology concerned, within 60 days from the date of such changes made. (ix d):- In case of lease granted to the company registered under Companies Act 2013, such company, with prior approval of the Deputy Director of Mines & Geology concerned, may be permitted to add new Directors into the company so that the original Directors of the company together shall continue to hold 51% of their share and voting rights in the company till expiry of lease or subsequent renewal lease period. The inter-se ratio of shares among original Directors shall not be changed during such a transfer. The lessee company shall effect such changes in the constitution of the company as required under Companies Act, 2013 and intimate the same to the Deputy Director of Mines & Geology concerned, within 60 days from the date of such changes made. Provided that in all the cases mentioned at Rule 31 (ix b)(ix c)(ix d), the lessee shall pay two (2) times of dead rent payable under Schedule II of Rule 10 of Andhra Pradesh Minor Mineral Concession Rules, 1966 as charges for affecting changes in constitution/reconstitution of the firms/companies and the lessee shall be made an application before the Assistant Director of Mines & Geology concerned in Form-R1 appended to this order, alongwith the non-refundable application fee of Rs. 10,000 (Rupees ten thousand only). The transfer lease deed shall be executed as per the provision under Rule 13(i). (ix e) :—In the case of lease held by the Central/State Public Sector Units, they may be permitted to sublet the lease granted to them in favour of Joint Venture Company firm formed by them after intimating the Deputy Director of Mines Sc Geology concerned.] [(viii f):- The holder of a Mineral Concession for Minor Minerals shall intimate to the Director of Mines and Geology through the Assistant Director of Mines and Geology concerned within 60 days of any change that may take place in its name, nationality or other particulars with relevant copies of certificates issued by the competent authority approving the changes. Subject to condition that, the shareholding pattern shall not be changed. [Added by Andhra Pradesh Notification No. G.O. Ms. No. 87, Industries & Commerce (Mines-II) Department, dated 1.8.2018 (w.e.f. 31.2.1967).] The holder(s) of a Mineral concession/lessee fails without sufficient cause to furnish the information referred to in sub-rule (a), the Director of Mines and Geology may impose a fine which may extend to two lakh rupees and in the case of continued contravention of the provisions of sub-rule (1) the Director of Mines and Geology may terminate the Mineral concession/lease as the case may be. Provided that no such order shall be made without giving the holder of mineral concession/lessee a reasonable opportunity of stating his case. Provided further that the changes are effected prior to issue of these orders, in such cases the lessee may intimate the changes with the copy of certificate issued by the competent authority within 60 days from the date of issue of these orders.] (x) The lessee shall not cut or injure any trees in the area under lease or permit ; (xi) The lessee shall obtain the permission of the Assistant Director before he would erect on the area under lease or permit any building for quarrying purposes if the area belonged to the Government ; (xii) If, in the course of quarrying, any mineral not specified in the lease is discovered, the lessee shall at once report such discovery to the Assistant Director to enable him to obtain orders of the Government regarding the working of the same ; (xiii) If the lessee stops to work the quarry without the prior sanction of the Assistant Director for a continuous period of six months, the lease granted for quarrying shall be liable to be cancelled; (xiv) [ If the lessee to whom a quarry lease is granted has duly observed all the conditions of the lease and file an application under Rule 9(i) to the Deputy Director (through Assistant Director) [***] [Substituted by G.O.Ms.No. 238, I & C, date 9-7-1992, w.e.f. 15-7-1992.] the Deputy Director may grant renewal for not more than two times to the period of the quarry lease. The renewals are further subject to the following criteria:- First Renewal: - (a) Systematic development of the quarry/quarries. (b) Development of good communication facilities and their maintenance. (c) Investment on transport. (d) Training of skilled labour and commitments on labour retention and inducement. (e) Preliminary work and investment for establishment of a processing (dressing or upgrading) plant utilising the product from the quarry/quarries in question. (f) Establishment of market for the product, either in raw from or in processed or semi-processed form. Second Renewal: - (a) Establishment of processing plant, either individually or in joint partnership with others. (b) Development of market in the country or abroad. (c) Any long term contracts with established industries for supply of quarry product. (d) Setting up of an industry in the region either individually or in partnership with others. Note: - (1) Adherence to and non-violation of rules during the term of occupation is a primary prerequisite in all cases of consideration of renewal. (2) In case of. patta lands, renewals may be automatic. (3) In case of leases for minor minerals useful for road metal ballast serving as a captive source for a crusher unit the renewal may be granted as long as crushing unit is in operation.] (xv) If the seigniorage fee or dead rent payable by the lessee is not paid within three months next after the date fixed in the grant or otherwise for its payment, the Deputy Director or any Officer authorised by him, may after giving an opportunity to the defaulter, enter upon the area under lease or permit and distrain all or any of the mineral or the movable property belonging to him and standing on the land, and may order for the sale of the property distrained or so much of it as will suffice to cover the arrears due to the Government together with all costs and expenses occasioned by the non-payment thereof and may also determine the lease or permit ; (xvi) In the case of any breach on the part of the lessee of any covenant or condition contained in the grant, the Deputy Director, may, after giving an opportunity to the defaulter, determine the lease [*] [Omitted by G.O.Ms.No. 147, I & C, date 5-3-1982.] and take possession of the premises under lease [*] [Omitted by G.O.Ms.No. 147, I & C, date 5-3-1982.] and forfeit the security deposit ; (xvii) On the determination of a lease or permit for violation of condition (iii), (xv) or (xvi), all sums paid by the lessee by way of deposit shall be adjusted towards the amounts, if any, due to the Government and any further dues remaining unpaid shall become recoverable from the lessee. (xviii) The Deputy Director may, in consultation with the Government determine the lease, if it is considered by him necessary to do so in the public interest after giving two calendar months notice in writing ; (xix) [ Any minor mineral extracted from the quarry and not removed by the lessee before the date of expiry of the determination of the lease or permit may be dispatched within 30 days or extended period granted by the Government from the date of such expiry or determination after paying dead rent and seigniorage fee and any other sums which may be due. If the lessee does not remove the extracted mineral from the leased area within the permitted and extended period mentioned above it shall be the property of the Government and the Assistant Director may sell it in public auction.] [Substituted by G.O.Ms.No. 315, I & C, date 2-8-1994, w.e.f. 8-8-1994.] (xx) [ When the quarry lease is granted by public auction the lessee shall pay the quarrying fee or lease amount in the manner prescribed in these rules.] [Inserted by G.O.Ms.No. 457, I & C, date 12-8-1986.] (xxi) [ (a) The lessee shall follow and effect the provisions of Labour Laws pertaining to the employment, payment of wages and other welfare measures to the Labour who are employed in quarries and mines. [Added by G.O.Ms.No. 117, I & C, date 16-11-2011.] (b) The lessee further shall take all precautionary measures in conducting mining operations as per the relevant stipulations made under Mettalliferrous Mines Regulations, 1961. (c) If the lessee violates the provisions as stipulated above, necessary action shall be taken for cancellation of the lease after obtaining the information from the concerned departments after giving an opportunity.]