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GOVERNMENT OF KARNATAKA KARNATAKA MINOR MINERAL Amendments CONCESSION Upto Date 07.10.2003 RULES 1994 Ammendments Upto the Date of 07.10.2003 Department of Mines and Geology #CHAPTER Bangalore GOVERNMENT OF KARNATAKA KARNATAKA MINOR MINERAL CONCESSION RULES 1994 CONTENTS CHAPTER - I PRELIMINARY 1. Title and commencement 2. Definition (a) Act (b) Competent Authority (c) Controlling Authority (d) Director (e) Form (f) Non-specified minor mineral (g) Ordinary building stone (h) Permit (i) Quarry (j) Quarrying Lease (k) Quarrying License (l) Schedule (m) Specified minor mineral CHAPTER II GENERAL 3. 4. 5. 6. 7. 8. Quarrying to be under quarrying lease or quarrying licence Competent Authority. Controlling Authority. General Conditions of Quarrying Lease and Licence. Power of the Competent Authority to specify additional conditions. Restriction on grant or renewal of quarrying Lease or Licence. CHAPTER III GRANT OF QUARRYING LEASE FOR SPECIFIED MINOR MINERALS 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Application for grant or renewal of a quarrying lease. Exemption of security deposit. Grant or renewal of quarrying lease Priorities Register of application and quarrying lease. Disposal of applications for grant or renewal of lease Maximum area of quarrying lease to be granted Periods for which quarrying lease may be granted or renewed Survey and demarcation of the area gran ted. Execution of quarrying lease Surrender of lease. Rights of the lessee. 2 CHAPTER IV GRANT OF QUARRY LEASES FOR NON SPECIFIED MINOR MINERALS 21. 22. Applications for grant or renewal of a quarrying lease in respect of non- specified minor minerals. 23. Scrutiny of applications, inspection of applied area and disposal of 24. applications. 23. Priority. 24. Register of Applications and quarrying leases. 25. Maximum area of Quarrying lease to be granted 26. Period of Quarrying Lease. 27. Notification of grant of lease. 28. Intimation of refusals. 29. Survey and demarcation of the area granted. 30. Execution of lease deed 31. Conditions of Quarrying lease. CHAPTER - IVA GRANT OF QUARRYING LEASE BY TENDER-CUM-AUCTION 31A : Notification for grant of Quarrying Lease 31B. Manner of submission of tender 31C. Joint Tender : 31D. Disqualification : 31E. Withdrawal of Tender-cum-Auction 31G. Undertaking to be given with tender or bid 31H. Payment to be made : 31I. Rejection of Tender or Bids : 31J. Confirmation : 31K. Execution of Quarrying Lease : 31L. Register of Notification and Quarrying Lease : 31M. Period of Quarrying Lease : 31N. Renewal of lease : 31O. Surrender of lease 31P. Transfer of Lease : 31Q. Application of Certain Rules for lease granted or renewed under CHAPTER V LICENCE FOR QUARRYING MINOR MINERALS IN PRIVATE OR PATTA LANDS 32. Quarrying licence. 33. Quarrying by Pattadars in Ex-Madras State territory. 34. Grant or renewal of a quarrying lease in private lands other than those referred in Rules 33 & 34. 35. Quarrying non-specified minor minerals in private land for bonafide domestic use. 3 CHAPTER VI ROYALTY, DEAD RENT, SECURITY DEPOSIT, INTEREST AND MINERAL DESPATCH PERMIT. 36. 37. 38. 39. 40. 41. 42. Payment of Royalty and dead rent in advance Head of Account to which royalty etc., to be credited Refund of security deposit Recovery of amount due to the Government Issue of annual audit reports Payment of interest Transport of Minor Minerals. CHAPTER VII CONTROLLING OF UNAUTHORISED TRANSPORTATION OF MINOR MINERALS, CHECKING OF MINERALS IN TRANSIT AND UNAUTHORISED QUARRYING OFFENSES 43. 44. 45. 46. Check posts and checking of minerals in transit Offences Termination of lease or licence held by an offender Power of entry, inspection etc., CHAPTER -VIII DISPOSAL OF SEIZED OR CONFISCATED MINOR MINERALS AND MINOR MINERALS LEFT AFTER THE EXPIRY OR TERMINATION OF LEASE THROUGH AUCTION SALE. 47. 48. 49. 50. 51. 52. Procedure for disposing of seized minor minerals Sale to be notified Disqualification to bid Earnest money Conduct and confirmation of sale Penalty for non-removal of auctioned minor mineral CHAPTER IX REVISION AND MISCELLANEOUS 53. 54. 55. 56. 57. 58. 59. Revision Delegation of powers Power to rectify apparent mistakes Relaxation of rules in special cases Application of these rules for renewal Repeal and saving Transitory provisions Ammendments Notification Number & Date No CI 418 MRC 92 Dated 06.05.95 No CI 256 MMN 96 Dated 03.06.97 No CI 2 MMN 98(1) Dated 08.07.99 No CI 2 MMN 98(1) Dated 16.10.2000 No CI 188 MMN 2000 Dated 30.09.2002 No CI 94 MMN 2001 Dated 22.03.2003 4  No CI 59 MMN 2003 Dated 07.10.2003 5 SCHEDULES, FORMS, NOTIFICATIONS 1. SCHEDULES 1) Schedule 1. Dead rent 2) Schedule 2. Royalty 3) Schedule 3. Minimum rate of minor minerals per unit volume / weight for purpose of Rule 47 4) Schedule 4. Auction sale confirming Authorities 5) Schedule 5. Penalty for non removal of mineral minor minerals. II. FORMS 1) Form-AQL Application for grant of quarrying lease/ Quarrying licence. 2) Form-R Application for renewal of quarrying lease/quarrying licence. 3) Form-A Acknowledgment for receipt of application for quarrying lease/quarrying license. 4) Form-QLA Register of applications for quarrying lease/quarrying licence. 5) Form-QL Register for quarrying lease/quarrying licence 6) Form-S Inspection report of applied area for quarrying lease/quarrying licence. 7) Form-GL Quarrying lease /licence Notification. 8) Form-E Quarrying lease /licence deed. 9) Form-Q Quarterly returns. 10) Form-Y Annual returns. 11) Form-O Classification of minor minerals for purposes of auction sale under chapter VIII. 12) Form-AP Application of grant of permit under Rule 42. 13) Form-MDP Mineral Despatch Permit(in short permit). 14) Form-RV Application for Revision. 6 COMMERCE AND INDUSTRIES SECRETARIAT NOTIFICATION No. CI 418 MRC 92, Bangalore, Dated 28th May 1994 In exercise of the powers conferred by section 15 of the Mines and Minerals {Regulation and Development} Act,1957 (Central Act 67 of 1957), the Government of Karnataka hereby makes the following rules, namely:CHAPTER I PRELIMINARY 1. Title and commencement:(1) These rules may be called the Karnataka Minor Mineral Rules, 1994. Concession (2) They shall come into force on the date of their publication in the official Gazette. 2. Definitions. In these rules, unless the context otherwise requires:(a) "Act" means the Mines and Minerals { Regulation and Development } Act, 1957 {Central Act 67 of 1957}; (b) "Competent Authority" means a Competent Authority rule 4; appointed under (c) "Controlling Authority" means a Controlling Authority appointed under rule 5; (d) "Director" means the Director, Department of Mines and Geology; (e) "Form" means a form appended to these rules; (f) "Non-specified minor mineral" means minor minerals other than specified minor minerals; (g) "Ordinary building stone" means ordinary building stone specified by the State Government from time to time. (h) "Permit" means a mineral despatch permit granted under these rules; (i) "Quarry" means any area declared as such by the Controlling Authority and set a part for quarrying any minor mineral; (j) "Quarrying lease" means a lease granted to quarry minor mineral under these rules; (k) "Quarrying Licence" means a quarrying licence granted rules; under these (l) "Schedule" means a Schedule appended to these rules; (m) "Specified minor mineral" means minor minerals specified by the State Government from time to time. 7 CHAPTER II GENERAL 3. Quarrying to be under quarrying lease or Quarrying Licence:(1) No person shall undertake any quarrying operation in respect of any minor mineral in any land except under or in accordance with the terms and conditions of a quarrying lease or licence or quarrying permit granted under these rules. (2) No Quarrying lease or licence or quarrying permit shall be granted otherwise than in accordance with these rules. 4. Competent Authority:The State Government may by notification, appoint the Competent Authority for all or any of the purposes of these rules. 5. Controlling Authority:The State Government may by notification appoint the Director or any other officer to be Controlling Authority for all or any of the purposes of these rules, within such limits as it may assign to them respectively. 6. General conditions of quarrying lease and licence:(1) Where the holder of a quarrying lease or quarrying licence fails to undertake quarrying operations for a period of one year after the date of execution of the lease or date of grant of licence or, having commenced the quarrying operations, has discontinued the same for a period of one year the quarrying lessee or the licence shall lapse on the last day of the period of one year: Provided that the Competent Authority may, on an application made by the holder of such lease or licence before its expiry and on being satisfied that the holder of such lease or licence could not undertake quarrying operations or continue such operations for reasons beyond his control, make an order, that such lease shall not lapse or where it has already lapsed, order for revival of such lease or licence: Provided further that no order under the first proviso shall be made for more than twice during the entire period of the lease or licence. (2) No person shall carry on or allow to carry on any quarrying operations within a distance of fifty meters if no blasting is involved and two hundred meters if blasting is involved from the boundary of any railway line, reservoir, tank bund, canal or other public works and public structures or any public road, or building, except with the written permission of the concerned authorities or the Competent Authority. The holder of a quarrying lease or licence shall also abide by such conditions as the Competent Authority may impose to carry on quarrying operations in the vicinity of the aforesaid buildings or places. 8 (3) In case of breach by the lessee or licence or his transferee or assignees of any of the conditions specified in these rules or in the quarrying lease deed or licence, the Competent Authority shall require by notice in writing the lessee or licence to remedy the breach within thirty days from the date of notice and if the breach is not remedied within such period the Competent Authority may levy a fine not exceeding two thousand rupees in the case of non-specified minor minerals and rupees ten thousand in case of specified minor minerals and the Competent Authority may without prejudice to any other action that may be taken against such lessee licensee, transferee or assignee determine the lease or licence after providing an opportunity of being heard. (4) Any minor mineral extracted from a quarry and not removed by the lessee or licence before the date of termination or determination or expiry of the quarrying lease or licence shall be the property of the State Government. 7. Power of the competent Authority to specify additional conditions:A quarrying lease or licence may contain such other conditions, as the competent Authority may deem necessary. 8. Restrictions on grant or renewal of Quarrying Lease or licence:(1) No quarrying lease or licence shall be granted to any person other than an Indian Citizen except with the prior approval of the Central Government. (2) Quarrying lease may be granted in any forest land by the State Government with the prior approval of the Central Government under the Forest Conservation Act 1980. Provided that the State Government in favour of any undertaking may grant a lease in such land owned by the Central Government or State Government, after obtaining prior approval under the Forest (Conservation) Act, 1980. (3) No quarrying lease shall be granted in respect of any land notified by the State Government as reserved for use by the State or Central Government, any body or corporation owned or controlled by the State or Central Government or for any other public or special purposes. (4) No quarrying lease or licence or renewal shall be granted in respect of any minor mineral to any person if such person has contravened the provisions of the Act or the rules made their under. (5) The Competent Authority shall before granting or renewing a lease, consult,(i) in case of specified minor minerals, the Deputy Commissioner of the District concerned: and (ii) in the case of non-specified minor minerals, the Tahasildar of the taluk concerned. 9 (6) The Deputy Commissioner or the Tahasildar, as the case may be, shall send his recommendation within thirty days from the date of receipt of communication from the Competent Authority for the word 30 days” the words 90 days shall be substituted; and ii) the following proviso shall be inserted, namely:- “Provided that if, no recommendation is received from the Deputy Commissioner or the Tahsildar, as the case may be, within ninety days from the date of receipt of communication from the Competent Authority, recommendation for grant or renewal of a quarrying lease shall be deemed to have been made by him”. 8A. Availability of land belonging to the State Government to be notified for grant. (1) No area belonging to the State Government ,(a) Which was previously held or is being held under quarrying lease; or (b) the quarrying lease granted in respect of which has lapsed under Rule 6; (c) In respect of which a Notification as been issued under Sub-Rule (3) of Rule (8); shall be available for grant unless the availability of the area for the grant is notified in the official Gazette and specifying the date (being the date not earlier than 30 days from the date of publication of such notification in the official Gazette) from which such area shall be available for grant. Provided that nothing in this rule shall apply to renewal of a Quarrying lease in favour of the original lessee or his legal heirs, not withstanding the fact that the lease has already expired. (omitted) Provided further that where as area is reserved for use by the State of Central Government of company or any body of corporation owned or controlled by the State or Central Government issue of such notification under this rule shall not be necessary before grant of quarrying lease in respect of such area. (2) The State Government may, for reasons to be recorded in writing relax the provisions of sub-Rule (1) in any special case. (3) Any application for grant of Quarrying lease in respect of areas whose availability for grant is required to be notified under Sub-Rule (1) shall, if(a) no notification has been issued under that Rule; or (b) Whether any such notification has been issued, the period specified in the notification has not expired.be deemed to be premature and shall not be entertained, and the application fee thereon, if any paid shall be refunded. 8-B: Notifying the area for grant of lease by tender-cum-action: (1) Notwithstanding anything contained in these rules the competent authority may by notification direct that quarrying lease to quarrying specified or nonspecified minor mineral in any area belonging to the State Government and available for grant, as may be specified in such Notification, shall be granted by tender-cub-action in accordance with the provisions of Chapter IV A. 10 (2) Where any area is notified under sub-rule (1), no quarrying lease to quarry specified or as the case may be, non-specified minor mineral in such area shall be granted in accordance with the provisions of Chapter III or Chapter IV, as the case may be. CHAPTER III GRANT OF QUARRYING LEASE FOR SPECIFIED MINOR MINERALS. 9. Application for grant or renewal of a quarrying lease:(1) Every application for grant of a lease to quarry specified minor minerals in the land belonging to the State Government which has not been notified under rule 8B shall be made in FORM-AQL to the Director and shall be accompanied by a security deposit in the form of treasury challan for a sum calculated at the rate of rupees five thousand per acre and an application fee of rupees two thousand in the form of a treasury challan under the specified Head of account together with other documents together with a certificate issued by the Competent Authority for having cleared the arrears if any in respect of any lease held by him as on the date of making application as specified in FORM-AQL. (2) An application for renewal of a quarrying lease to quarry specified minor mineral belonging to the State Government shall be in FORM-R and shall be made to the Director at least twelve months before the expiry of the lease. The application shall be accompanied by a fee of rupees two thousand in the form of a treasury challan under the specified Head of account together with the difference of amount of security deposit, if any, to be paid by the lessee at the prevailing rates in the form of treasury challan together with other document together with a certificate issued by the Competent Authority for having cleared the arrears if any in respect of any lease held by him as on the date of making application and documents. “(2A), If an application for renewal of a quarrying lease made within the time referred to in sub-rule (2) is not disposed of by the State Government before the date of expiry of the lease, the period of that lease shall be deemed to have been extended by a further period till the State Government passes orders thereon”. (3) Application received under sub-rules (1) and (2) shall be acknowledged in FORM-A. The acknowledgment shall be sent to the applicant by Registered post. 10. Exemption of security deposit:Government may by order make an exemption or reduction in the amount of security deposit payable by companies or undertakings owned by the State Government. 11 11. Grant or renewal of quarrying lease:(1) There shall be a Committee to make recommendations for grant or renewal of a quarrying lease under this rule. The committee shall consist of the following members; a) The Secretary to Government, Commerce and Industries Department who shall be the Chairman; b) The Secretary to Government, Finance Department: or his nominee not below the rank of the Deputy Secretary to Government. c) The Secretary to Government, Revenue Department; or his nominee not below the rank of the Deputy Secretary to Government. The Secretary to Government, Forest, Ecology and Environment Department; or his nominee not below the rank of the Deputy Secretary to Government. d) The Director, Department of Mines and Geology, who shall be the Member Secretary; 1A ) Three members shall form the quorum for a meeting of the committee. (2) The Director shall, on receipt of the application under rule 9 scrutinies all such application and submit with his remarks to the committee. (3) On receipt of applications from the Director, the committee shall having regard to the priorities under rule 12, and the guidelines issued by the State Government, if any, consider such applications and make recommendations to the Director. " Provided that the Committee shall not consider such applications in respect of any area, which is notified under rule 8B after the receipt of the application on or before the date of consideration and all such application shall be liable to be return to the applicants and security deposit and fee paid, if any, may be refunded. (4) The Director may, having regard to recommendations of the committee, order for grant or renewal of a quarrying lease or reject the application. (5) Where the quarrying lease is granted or renewed under sub-rule(4),the Director shall notify in FORM-GL the grant or renewal of the lease and in the case of rejection of application, such rejection together with reasons therefore shall be intimated to the applicant. 12. Priorities:(1) Selection from amongst the applicants for grant of quarrying lease under this chapter shall normally be made in the following order of preference, namely:(i) A Corporation or undertaking owned or controlled by the State or Central Government and Joint Sector projects with such Government Corporations or Undertakings; 12 (ii) Persons who have already established hundred per cent export oriented units for cutting and polishing of granites in the State; (iii) Persons who have already established a small scale Industrial unit for cutting and polishing of granites in the State; (iv) Persons who hold a valid licence for establishment of a granite cutting and polishing unit within the State for the purpose of hundred per cent export and persons who hold a permanent Registration Certificate for establishment of a Small Scale Industrial Unit in the State; (v) Society registered under the Karnataka Co-operative Societies Act,1959, and the members of which belong to the Scheduled Castes & Scheduled Tribes; (v) A Society registered under the Karnataka Co-operative Societies Act,1959, and the members of which belong to economically weaker sections of the Society and who are also stone quarry workers by tradition; (vii) all others: (2) In case of applicants falling under clause (iv) of this rule 12 who require specified minor mineral for their proposed industry they shall set up industry in accordance with their industrial program within a period of twenty four months from the date of execution of lease deed and shall keep the Director informed of the progress made every six months from the date of execution of lease deed. On setting up of industry the lessees shall inform the fact in writing to the Director failing which the lease shall be deemed to have been terminated on the expiry of the said period of twenty four months. Where the lessees are unable to set up industry within the said period for reasons beyond their control they may submit before the expiry of the said period an application to the Director explaining the reasons for the same together with affidavits. The Director shall forward such applications to the State Government and it may on being satisfied that such failure in setting up the industry was due to reasons beyond the control of the lessee, extend the period of such lease by one more year either prospectively or retrospectively. 13. Register of application and Quarrying Lease:(1) The Director shall cause to be maintained the namely:- following Registers, (a) Register of applications for quarrying leases in FORM-QLA. (b) Register of quarrying leases in FORM-QL with area sketches appended. (2) Every such Register is open to inspection by any person on a written request and payment of rupees five hundred and at the discretion of the Director. 13 14. Disposal of application for grant or renewal of lease:(1) Application for grant or renewal of lease shall be disposed; (i) in the case of an existing industry within a period of One hundred and eighty days from the date of receipt of application failing which the applicants shall be informed of the reasons for delay within fifteen days after the expiry of the disposal period. (ii) in all other cases within a period of four months from the date of receipt of applications failing which the applicants shall be informed of the delay within fifteen days after the expiry of the disposal period. 15. Maximum area of Quarrying lease to be granted:(1) Total area of one or more quarry leases to quarry specified minor minerals shall not exceed; (i) fifty acres in case of an existing hundred percent export oriented granite cutting and polishing unit in the State, falling under clause (ii) of sub-rule (1) of rule of 12, (ii) forty acres in case of other granite cutting and polishing units in the State, falling under clause (iii) (iv) and (v) of Sub-rule (1) of rule 12, (iii) ten acres in all other cases, falling under clause (iv),(v),(vi) and (vii) of sub-rule (1) of rule 12. (2) Nothing in Sub-rule (1) shall apply to State or Central Government undertakings and Joint Sector projects undertaken by the State or Central Government undertakings within the State. (3) While determining the total area referred to in sub-rule (1), the area held under a quarrying lease by a person as a member or partner of a company or corporation or Firm or a Co-operative Society shall be deducted from the area referred to under sub-rule (1) so that the sum total of the area held by such person under quarrying leases whether as such member or partner or individually shall not, in any case exceed the total area specified under sub-rule (1). 16. Periods for which quarrying leases may be granted or renewed:(1) The period for which a quarrying lease may be granted chapter shall not exceed twenty years in any case. under this (2) A quarrying lease under this chapter may be renewed for two periods each not exceeding twenty years. 14 17. Survey and demarcation of the area granted:(1) After the grant of quarrying lease is notified under sub-rule (5) of rule 11 the Competent Authority shall make arrangements for survey and demarcation of the area subject to the grantee paying the expenses at the rate of Rupees five hundred per acre of land so granted “ within one month from the date of receipt of notification by the grantee” (2) The boundaries of area covered by a quarrying lease shall run vertically downwards below the surface towards the centre of the earth. 18. Execution of quarrying lease:(1) When a quarrying lease is granted under rule 11, lease deed shall be got executed in FORM-E by the grantee within three months of the order granting or renewing the lease or within such further period as the Competent Authority may allow in this behalf and if no such lease deed is executed within the aforesaid period, the order granting or renewing the lease shall be deemed to have been revoked. (2) Before execution of a lease deed, the grantee shall pay in advance fifty percent of the total dead rent payable during the first year. (3) The grantee shall also submit a QUARRYING PLAN which shall incorporate geological map cum contour plan of the area and a map showing the layout of the proposed quarry and the area identified for dumping waste rocks, if any, together with a brief report about the minor minerals occurring in the area and their probable reserves. a) In respect of quarrying lease consisting of an area of five acres and more; a quarrying plan, containing the particulars specified in clause (c) shall be submitted by the lessee within six months from the date of grant of lease. b) The quarrying plan so prepared shall be valid for working in the next five years or the duration of the quarrying lease whichever is less and modification or alternation in the quarrying plan with reason thereof shall be reported to the Competent authority. c) The quarrying plan shall contain the following particulars, namely:i) Contour Plan showing the Geological map; ii) Quarry lease area map showing the layout of the proposed quarrying and manner in which the quarrying is to be developed. iii) Identification of the area for dumping waste rocks and soil. iv) A brief report about the minerals occurring, probable reserves and the recovery of the different sizes of the mineral. v) Impact of quarrying on Environment and measures proposed for preservation of the Environment. (4) As soon as the lease deed is executed the copy of the same shall be forwarded to the concerned Deputy Commissioner. (5) The lessee shall at his own expense erect and at all times maintain and keep in good condition marks and pillars necessary to indicate the boundaries of the area leased to him. 15 (6) If any mineral, major or minor, not specified in the lease is discovered in the leased area, the lessee shall report the discovery without undue delay to the concerned Competent Authority and to the officer in charge of the District and shall seek permission to quarry or dispose of such mineral. (7) The lessee shall abide by such reasonable instructions and directions as may be issued by the Competent Authority from time to time regarding the conservation and development of minor minerals. (8) The lessee shall abide by provisions of any law for the time being in force relating to working of minerals, ecology and environment and matters affecting surface and ground water conditions, safety, health and convenience of the lessee's employees or of the public. (9) The lessee shall keep correct accounts showing the quantity and other particulars of all minor minerals produced or obtained, in stock and despatched from the leased area and the number of persons employed therein and also compile survey plans of the quarry workings and shall furnish to the Competent Authority or any officer of the Department of Mines and Geology authorised by the State Government or Director such information/reports and returns as the State Government or the Director may require from time to time. (10) The lessee shall submit to the Competent Authority or any other officer authorised by him or the State Government quarterly returns in FORM-Q before the eighth day of the succeeding month and annual returns in FORM-Y for each financial year before the tenth day of April of the succeeding year. Such reports shall furnish specific information on the quantity of minor minerals and waste rocks produced, quantity sold or utilised, quantity in stock, royalty or dead rent paid and permits obtained. 19. Surrender of lease; (1) Lessee may surrender his lease granted under rule 11 or part of the leased area by giving a notice in writing of not less than ninety days to the Competent Authority and by delivering possession of the area leased. (2) The Competent Authority may accept the surrendered area after due verification of the land and subject to the following conditions, namely:(a) the lease hold area to be surrendered has been properly surveyed and is contiguous; (b) the lessee has paid all the dues payable to the State Government under the lease up to the date of application. (3) The Competent Authority shall dispose of the application under this rule within ninety days from the date of receipt of the application. (4) The surrender shall take effect at the end of the said period of ninety days subject to the fulfilment of the conditions by the lessees and in other cases it shall take effect only when the Competent Authority accepts surrender and lessee delivers possession of the quarry or part of the quarry area to the Competent Authority. 16 (5) At the time of renewal of the quarrying lease, the lessee shall be entitled to surrender any part of the leased area. 19-A (1) Prohibition of Transfer of leases; The lessee shall not, (a) assign, sub-let, mortgage or in any other manner transfer the quarrying lease or any right, title or interest therein, or (b) enter into any agreement, arrangement or understanding with any person whereby lessee is directly or indirectly financed to a substantial extent by such person and quarrying operation and other activities connected therewith are substantially controlled by such person; Provided that nothing in this rule shall apply to mortgage made by a lessee in favour of the Institutions specified in Schedule VI”. (i) (a) “ or to transfer of lease held by the lessee to the company or firm in which he is one of the Directors or partners, as the case may be”. Provided further that such transfer of lease shall not be made without a written consent of the Competent Authority and such consent shall not be given unless: (i) the lessee has furnished an affidavit along with his application, for transfer of the quarrying lease specifying therein the amount that he has already taken or proposed to take as consideration from the transferee; (ii) the transfer of the quarrying lease is to be made to a company or firm directly under taking quarrying operation in which the lessee is one of the directors or partners as the case may be, in the said company or firm and the company or firm has filed an affidavit stating that they have filed an up to-date Income tax returns, paid the income tax assessed on them and paid the income tax on the basis of self assessment as provided in the Income Tax Act, 1961; and (iii) A processing fee of rupees one thousand is paid in the form of a Demand Draft drawn in favour of the Director of Mines and Geology, Bangalore. Provided also that the lessee shall not charge or accept from the transferee any premium, in addition to the sum spent by him in obtaining the lease, and for conducting all or any of the quarrying operation over the area leased to him”. (2) The Competent Authority may, by order, in writing determine any lease at any time, if, the lease, has, in the opinion of the Competent Authority, committed a breach of any of the provisions of sub-rule (1) or has transferred any lease or any right, title or interest therein without the previous consent in writing of the Competent Authority. (3) Where the Competent Authority has given consent for transfer of such lease, a transfer of lease deed in form “T” shall be executed within three months of the date of consent, or within such further period not exceeding three months as the Competent Authority allows thereon.” 17 20. Rights of the lessee:Subject to the conditions specified in these rules, lessee shall, for the purpose of quarrying operations have rights to ; (1) Work the quarry well within the limits of the area granted and as per the sketch of the lease area appended to the lease deed; (2) sink pits, shafts and open tunnels in a systematic manner; (3) construct buildings of dimension not more than forty square meters only over non-mineral bearing area; (4) use water subject to any law in force. CHAPTER-IV GRANT OF QUARRY LEASES FOR NON-SPECIFIED MINOR MINERALS (1) Every application for grant of a quarrying lease to quarry non-specified minor minerals in the land belonging to the State Government which has not been notified under rule 8-B shall be made in FORM-AQL to the Competent Authority. The application shall be accompanied by a security deposit in the form of treasury challan for a sum calculated at the rate of rupees two thousand five hundred per acre and an application fee of rupees one thousand in the form of a treasury challan, together with a certificate issued by the Competent Authority for having cleared the arrears, if any, in respect of any lease held by the applicant as on the date of making the application area sketch etc. as specified in FORM-AQL. (2) Every application for renewal of a quarrying lease to quarry non specified minor mineral in the land belonging to the State Government which has not been forfeited under rule 8 B shall be made in FORM-R to the competent authority on or before ninety days before the expiry of the lease together with a certificate issued by the Competent Authority for having cleared the arrears, if any, in respect of any lease held by the applicant as on the date of making the application to the Competent Authority. The application shall be accompanied by an application fee of Rs.1,000.00 in the form of a treasury challan together with the difference of Security deposit, if any, to be paid by the lessee at the prevailing rate, sketch etc. as specified in FORM-R. (2A) If an application for renewal of a quarrying lease made on or before the expiry of the lease, lis not disposed of by the Competent Authority before such expiry, the period of lease shall be deemed to have been extended for a further period, till the Competent Authority passes orders thereon”. Provided that an application for grant or renewal of a quarrying lease by any person belonging to economically weaker section and who is a quarry operator by tradition and whose livelihood depended entirely on quarrying of ordinary building stones, shall be accepted with rupees one thousand as the security 18 deposit per acre and rupees five hundred as application fee. (3) Application received under sub-rule (1) and (2) shall be acknowledged in FORM-A. 21(A) Grant of quarrying permits:- (1) Notwithstanding anything contained in these rules, on an application made, by any person in form AQP to the Competent Authority, may grant a quarrying permit in form QP to extract or remove ordinary sand in the revenue Districts of Bangalore, Bangalore Rural, Mandya, Kolar and Tumkur within such areas, as may be specified by the competent authority not exceeding one thousand tonne under any one permit, on payment to the competent authority of royalty calculated at the rates specified in Schedule 2. The validity of such quarrying permit shall not exceed three months from the date of issue. Provided that the Competent Authority may for reasons to be recorded in writing refuse to grant such permit. a) provided that nothing in this rule shall apply to grant of a quarrying lease to quarry ordinary sand. The grant of ordinary sand shall be by auction in accordance with the provisions of the Chapter IVA of the rules. b) The period for which a quarrying lease may be granted by auction shall be one year. c) There shall be a taluk level auction committee consisting of the following members. i) Assistant Commissioner of the respective Jurisdiction Chairman ii) Tahasildar of the respective Jurisdiction Member iii) Executive Officer of the respective taluk panchayath Member iv) Senior Geologist/Geologist of the respective Jurisdiction v) Member Secretary The provision of rules 7, 29, 31, (2) (3) (4) of the chapter II and IV, of Rules 31A, 31D, vi) 31E, 31G, 31H, 31I, 31K and the Provisions of Rule of Rule 30, 31L and 31O of Chapter IV A shall mutatis and mutaudis apply to quarry leases granted. (2) A register of quarrying permit shall be maintained by the competent authority in form “QPR”. 19 22. Scrutiny of applications, inspection of applied area and disposal of applications:(1) Every application made under rule 21 shall be disposed of within ninety days from the date of its receipt and if it is not disposed within that period, the applicant shall be informed of the reasons for the delay within fifteen days after the expiry of the said period of ninety days. The Competent Authority shall obtain a report of inspection of the applied area in FORM-S. 23. Priority:(1) If more than one application for a quarrying lease over the same area is received under rule 21, preference shall be given to the applications in the order of date of receipt. (2) If more than one application over the same area is received under rule 21 on the same day, preference shall be given to the applicants in the following order, namely; (i) application from a person belonging to economically weaker sections of society who is a quarry operator by tradition and whose livelihood depended entirely on quarrying of ordinary minor minerals; (ii) application from any Co-operative Society Registered under the Karnataka Co-operative Societies Act,1959 all the members of which are bonded labourers, freed and discharged in accordance with section 4 of the "Bonded labour System (Abolition) Act, 1976 (Central Act .19 of 1976); (iii) application from any Co-operative Society Registered under the Karnataka Co-operative Societies Act,1959 all the members of which belong to Scheduled Castes or Scheduled Tribes; (iv) Sculptors; (v) all other applications in order of receipt and date of first-come first basis; application, on (3) Notwithstanding anything obtained in sub-rules (1) and (2),in the case of an applied area which is free for grant but is already being worked and in possession of persons belonging to the categories (i),(ii) or (iii) of sub-rule (2) above, irrespective of whether they are members of a Co-operative Society or not, they shall, by a written notice be called upon to stop unauthorised quarrying, if any, unless such quarrying is regularised within a period of one month time from the date of issue of notice. If no such persons or their Registered Society make applications within the said period of one month, any pending application in respect of such area shall be processed in accordance with priorities under sub-rule (1) . (4) Not withstanding any thing contained in sub-rules (1) and (2) ,the Competent Authority may reserve or grant any area for quarrying in lands belonging to the State Government, in favour of State or Central Government undertakings or Government Departments provided that applications from them is received before the execution of lease deed. 20 24. Register of applications and quarrying leases:(1) The Director or the concerned Competent Authority shall cause to be maintained the following registers, namely:(i) Register of applications for quarrying leases in FORM-QLA. (ii) Register of quarrying leases executed in FORM-QL. (2) Every such register referred to in sub-rule (1) shall be open to inspection by any person on written request and payment of rupees one hundred at the discretion of the Competent Authority. 25. Maximum area of quarrying lease to be granted:(1) The total area of one or more quarry leases granted or renewed under this chapter shall not exceed twenty-five acres except in the case of public sector undertakings and State Government Departments. (2) The area to be granted shall resemble a square or a rectangular block. In the case of rectangular block, the longest side of the block shall not exceed four times the shortest side. Provided that nothing in this shall apply to grant or renewal of quarrying lease in respect of ordinary sand. 26. Period of quarrying lease:(1) The period for which a quarrying lease may be granted under this chapter shall not exceed five years; Provided that where the request for grant of a quarrying lease is in respect of a mineral based industry belonging to the applicant, lease may be granted for a period not exceeding ten years. (2) A quarrying lease may be renewed for two periods each not exceeding five years at a time Provided that, if the lessee is owner of an industry which is based on the quarry lease held by him, the lease may be renewed for ten years at a time. 27. Notification of grant of lease:The Competent Authority may, having regard to the provisions of these rules and after making such enquiries as it deems fit, grant or refuse to grant or renew a quarrying lease. Where a lease is granted or renewed, the Competent Authority shall issue a notification in FORM-GL. Provided that the competent authority shall not grant a quarry lease in respect of any area which is notified under rule 8-B after the date of receipt of applications but before the date of consideration of grant, and all such application for grant made in respect of such area shall be liable to be returned to the applicants and security deposit and fee paid, if any, be refunded. 21 28. Intimation of refusal:If the application for a quarrying lease or renewal thereof is rejected by the Competent Authority, it shall record the reasons therefore and shall communicate the reasons to the applicant concerned within fifteen days of the date recording such decision. 29. Survey and demarcation of the area granted:After the grant or renewal of a lease is notified under rule 27, the Competent Authority shall arrange for survey and demarcation of the area notified at the expense of the grantee, which shall be at the rate of rupees three hundred per acre of land granted for quarrying. And the amount towards such expenses shall be paid by the grantee within one month from the date of receipt of the notification issued under rule 27. 30. Execution of lease deed:(1) When a quarrying lease is granted or renewed under rule 27, a lease deed shall be got executed by the grantee in FORM-E within three months of the order granting or renewing lease, or within such further period not exceeding three months as the Competent authority may allow in this behalf failing which the Competent Authority shall communicate to the grantee the cancellation of the order made under rule 27. (2) Before executing lease deed the grantee shall pay fifty percent of the dead rent payable during the first year. (3) The Competent Authority shall forward to the Director and concerned Tonsillar one copy of the quarrying lease deed as soon as the lease deed is executed. 31. Conditions of quarrying lease:(1) The provisions of rules 6,7,8,19, 19A, 20, and rules 35 to 41 shall "mutatis mutandis" apply to quarry leases granted or renewed under this chapter. (2) A quarrying lease deed may contain such other conditions as the Competent Authority may deem necessary in the interest of maintaining the local (3) environment, habitat of surrounding area leased and in the interest of conservation of minerals. 22  CHAPTER - IVA GRANT OF QUARRYING LEASE BY TENDER-CUM-AUCTION 31.A : Notification for grant of Quarrying Lease – (1) For the purpose of grant of quarrying lease by tender-cum-auction in respect of the area notified under rule 8B the Director shall issue a notification containing the following particulars, namely : 1) 2) 3) 4) 5) Name of the minor mineral. Survey Number, extent of the area and boundaries. Name of the Village, Taluk and District. The period of lease. The last date for receipt of tender, the time at which and the place in which the auction will be held: and (vi) general conditions governing the tender-cum-auction. (2) The notification shall also be published in at least two daily newspapers (One English and one Kannada) at least fifteen days before the last date specified in the Notification for the receipt of tender. 31B. Manner of submission of tender :- (1) Tenders shall be submitted in the form specified by the Director. The tender shall be submitted by the tender or himself or by his power of attorney holder in a sealed cover addressed to “ the Director “. 2) The cover containing the tender shall be superscribed with the words “ Tender against Notification No .................... Dated ..................... “ It shall be delivered to the Director to such officer as the Director may authorise to receive, not later than the date and time fixed for the receipt of the tenders. 3) Where more than one tender is submitted for grant of Quarrying Lease by a person, the tender containing the highest offer shall be considered and not for other tenders. 4) Even tender received shall be acknowledged by the officer receiving it. 5) A tender shall not be conditional and if it is conditional it shall not considered. 6) Every tender shall be accompanied by an earnest money deposit of an amount equal to on year’s dead rent for the area covered under notification. Such earnest money deposit shall be made in the form of Demand Draft drawn on scheduled Bank in favour of the Government of Karnataka, payable at Bangalore. Tenders not be considered, accompanied by such earnest money deposit shall not be considered. 23 7) The tender shall be accompanied by. i Clearance certificate in respect of mining dues, such as or royalty dead rend and surface rent payable under the Act or the rules made there under, obtained from the Government or any officer or authority authorised by it in this behalf; an affidavit stating that the applicant has, A Filed up-to-date income-tax Returns. B Paid the income tax assessed on him, and C paid the income tax on the basis of self assessment as provided in the Income tax Act, 1961. 8) Tender forms which are incomplete or not accompanied by the documents specified in Sub-rule(7) shall not be considered. 31C. Joint Tender : A tender submitted jointly by more than one person shall not be considered except in the case of tender by a firm, company or a body corporate and in the case of a firm, company or a body corporate tender shall be submitted by the person duly authorised by the firm, company or body corporate as the case may be. 31D. Disqualification : (1) A person shall e disqualified from submitting a tender, if he,i) is a minor or an undischarged insolvent or is of unsound mind, or ii) is holding an office of profit under the State Government or Central Government, or iii) has not paid the arrears of royalty or dead rent in respect of lease held by him, or iv) has been convicted of any offence involving moral turpitude 31E Withdrawal of Tender:.A tender once submitted shall not be withdrawn thill the grant of quarry lease is made in respect of such area consideration. . 31F. Withdrawal of Tender-cum-Auction : 1) The Director shall, on the date and at the time and place specified in the notification under Rule-31A, hold the auction. If the auction is not held on that day due to the day being a public holiday or for any other reason, the auction shall be held at the same time on the next working day for which no further notification or notice shall be necessary. 2) The Director causes the auction notification to be read out and explained in English and Kannada. He shall prepare a list of intending bidders in respect of each area including those who have submitted tenders and desire to take part in bidding. The intending bidders shall register themselves by paying a nonrefundable registration fee of Rupees Five hundred only and an earnest money deposit of an amount equal to one year’s dead rent for the mineral in area covered in notification. The registration fees and dearness money deposit shall be payable in the form of Demand draft payable in favour of the Government of Karnataka at Bangalore or by cash. 3) Only persons included in such list shall be permitted to bid. 24 4) No person shall be included in such list if, a) he is a person disqualified from submitting a tender, or b) he has not paid the Registration fee and the earnest money deposit at the rate and in the manner specified in sub-rule (2), or c) has not given the undertaking under Rule-31G. 5) The bids offered shall be recorded in the list of bidders and the signature of the highest bidder obtained in token of his offer. A bid once offered shall not be withdrawn. 6) A bid offered jointly by more than one person shall not be considered. A person offering a bid shall be entitled to be represented by duly constituted attorney. 7) After all the areas notified are auctioned, the Director shall open the tenders received in respect of the respective areas and record the offers contained in each tender. He may accept, provisionally, the highest amount offered in the tender or at the auction and announce the same. 31G. Undertaking to be given with tender or bid : The person submitting a tender or offering a bid shall give a prior undertaking to fulfil the stipulation that such tender or bid shall not be withdrawn. 31H. Payment to be made : (1) The person whose tender or offer or bid is accepted provisionally shall within fifteen days of such acceptance is announced, make a deposit of the amount equal to the tender or offer or bid which is provisionally accepted. The earnest money deposit paid, along with tender or at the auction shall be adjusted against the amount payable. 2) If the payment as required by sub-rule(1) is not paid, the provisional acceptance of the tender or offer or bid shall stand cancelled, the earnest money shall be forfeited and the Director may either accept provisionally the next highest tender or offer or bid or grant the lease afresh in such manner as the State Government may direct. 3) In the later case, the grant shall be at the rise of the defaulter who shall not be entitled to any excess amount realised but shall he liable for the losses sustained by the State Government. The Director shall be entitled in assess such loss and recover it from the defaulter as if it were an arrear of land revenue. A defaulter shall not b e entitled to submit tender or offer or bid at the auction held under sub-rule(2). 31i . Rejection of Tender or Bids : The Director may reject any tender or offer or bid submitted to him on the ground that such tender or offer or bid is too low or for any other reason, to be recorded in writing. 31J. Rejection of Tender or Bids: (1) Where the Director has accepted provisionally a tender or offer or bid, he shall forthwith submit to the State Government the records of the proceedings conducted by him, for confirmation. 25 2) The State Government shall, on a consideration of the records under sub-rule (1) pass an order either confirming the bid or tender for grant of a quarrying lease or refusing to confirm the same. The order passed thereon shall be communicated forthwith to all concerned. 31K. Execution of Quarrying Lease : The person whose tender or offer or bid is confirmed under Rule-31J shall execute a lease deed. The provision of Rule-18 shall mutatis mutandis apply in respect of Execution of lease deed under this rule. 31L. Register of Notification and Quarrying Lease : The Director shall cause to be maintained the following Registers, namely:i) Register of Notification for quarrying leases in FORM-QLN. ii) Register of Quarrying Leases executed in Form QL with area, sketches appended. 2) Every such Register referred to in Sub-Rule (1) shall be open to inspection by any person on a written request and payment of Rupees one hundred and at the discretion of the competent authority. 31M. Period of Quarrying Lease : The period for which a quarrying lease may be granted unde3r this Chapter shall not exceed ten years. 31N. Renewal of lease : (1) An application for renewal of Quarrying lease under this Chapter shall be made in Form-R to the Director at least Ninety days before the expiry of the lease. The application shall be accompanied by a Treasury Challan for having paid the difference of the amount of Security Deposit, if any, to be paid by the lease at the prevailing rates and a Treasury Challan for an amount equal to the amount specified in sub-rule(2) as consideration for the renewal of the lease. 2) An amount equal to the amount of the tender or bid, as the case may be, paid as consideration for the grant of the quarry lease, plus twenty five per cent or fifty per cent of such amount shall be paid for the first and second renewal respectively. 3) A quarrying lease granted under this Chapter may be renewed for two periods, each period not exceeding the period of the original lease. 4) The application for renewal of the lease shall be disposed of by the competent authority before the date of expiry of the lease, failing which the lease shall be deemed to have been extended by a further period till the competent authority. passes order thereon. 5) The competent authority may after giving a reasonable opportunity of being heard and for reasons to be recorded in writing and communicated to the applicant, refuse to renew a quarrying lease for the whole or part of the applied area. 26 Provided that were the sanction for renewal is only for a portion of the applied area, the amount payable as consideration for the grant of renewal of the lease under Sub-Rule (2) shall be in proportion to the area for which the renewal is sanctioned. 31O. Surrender of lease : (1) A Lease may surrender his lease granted under this Chapter by giving notice in writing of not less than ninety days to the competent authority and by delivering possession of the area leased. 2) The competent authority may accept the surrender of the lease, subject to the condition that the lessee has paid all the dues payable to the State Government under the lease up to the date of application. 3) The competent authority shall dispose of the application under this Rule within Ninety days from the date of receipt of the application. 4) The surrender shall take effect at the end of the said period of Ninety days subject to fulfilment of the condition specified in Sub-Rule (2) and in order cases, it shall take effect only, when the competent authority accepts surrender. Lessee/ex-lessee shall not be entitled to continue in possession or re-enter possession of the quarry thereafter. 31P. Transfer of Lease : (1) No lessee shall without the previous consent in writing of the competent authority : A B assign, sublet, mortgage or in any other manner transfer the Quarrying Lease or any right, title or interest therein, or : enter into an agreement, contract or understanding with any persons whereby the lessee is directly or indirectly financed to a substantial extent by such person and quarry operations and any other activities connected there with are substantially controlled by such person: Provided that nothing in the rule shall apply to mortgage made by the lessee in favour of the Institution specified in Schedule-VI. 2) The competent authority shall not give its consent to transfer of Quarrying Lease unless the transferee: A B has accepted all the conditions attached to the lease and liabilities which the transferor was having in respect of such lease: agree to pay to equivalent around which the transferor had paid in respect of the tender or bid to obtain the right to the grant of the lease as consideration for the transfer. 3) The competent authority by order in writing determined any lease at any time, if the lessee has in the opinion of the Competent Authority committed breach of any of the provisions of Sub-Rule(1) or has transferred any lease or any right, title or interest therein otherwise than in accordance with SubRule(2). 27 Provided that no such order shall be made without giving the lessee a reasonable opportunity of stating his case. 4) An application for transfer of lease shall be disposed of by the competent authority within ninety days from the date of receipt of the application. 5) The sanction for the transfer shall take effect at the end of Ninety days, from the date of such sanction, subject to the fulfilment of the conditions specified in Sub-Rule (2). 6) Where on an application for transfer of quarrying lease, previous consent for the transfer has been obtained under this rule, a deed in such form as may be specified by the competent authority, shall be executed within ninety days of the date of obtain consent for the transfer or within such period as the competent authority may allow in this behalf. 31Q. Application of Certain Rules for lease granted or renewed under Chapter: The provisions of Rule 6,7,8,20 and Rules 36 to 41 shall “ Mutatis Mutandis “ apply to Quarry leases granted or renewed under this Chapter. CHAPTER V LICENCE FOR QUARRYING MINOR MINERALS IN PRIVATE OR PATTA LANDS 32. Quarrying licence :No person shall undertake quarrying operation in respect of minor minerals in any private land (including pattaland) except under a quarrying licence granted under this chapter. (2) When a Pattadars applies to the competent authority concerned for Mineral Despatch Permit for the first time, the competent authority shall arrange for survey and demarcation of the area, subject to the pattadar paying the expenses which shall be at the rate of Rupees Five hundred per acre of land and the provisions of rule 42 shall "mutatis mutandis" apply. Provided that nothing in this rule shall apply to quarrying by persons in possession of pattalands in ex-Mysore State territory which is now situated in Karnataka State and who are full owners of certain sub-soil minor minerals situated in their pattalands. 33. Quarrying by pattadars in Ex-Madras State territory:(1) An occupant or tenant or Power of Attorney holder or Contractor in actual possession of the pattaland land in Ex-Madras State territory now situated in Karnataka State who intends to commence quarrying or renew quarrying in such land shall make an application in Form-AQL or Form-R, as the case may be, together with a security deposit and application fee as specified in subrule(2) of rule 34 to the Competent Authority for grant or renewal of a quarrying licence. 28 (2) On receipt of the application under sub-rule (1), the Competent Authority shall, if it sees no valid objection, obtain a report of inspection of the applied area in Form-S and grant or renew a quarrying licence in Form-GL in accordance with the provisions of this chapter or reject the application. (3) The provisions of chapter II and rules 13,17, 18, 19,20 and sub-rules (4), (5), (6), (7) and (9) of rule 34 shall, mutatis mutandis apply for grant or renewal of a quarrying licence under this rule. 34. Grant or renewal of a quarrying licence in private lands other than those referred to in rules 32 and 33:(1) Every application for grant of a quarrying licence to quarry any specified minor mineral on private land other than those referred to in rules 32 and 33 shall be made in FORM-AQL to the Director which shall be accompanied by a security deposit in the form of treasury challan for a sum calculated at the rate of rupees five thousand per acre and an application fee of rupees two thousand in the form of treasury challan under the prescribed Head of Account and other documents as specified in FORM-AQL. (2) An application for renewal of a quarrying licence under this rule shall be in FORM-R and it shall be made to the Director at least ninety days before the expiry of the period of licence. The application shall be accompanied by an application fee of rupees two thousand in the form of treasury challan for the said sum and other documents specified in FORM-R. Further, the renewal application shall be accompanied by the difference of amount of security deposit, if any, to be paid by the licensee at the prevailing rates. Such difference of amount shall also be paid through a treasury challan. (3) Every application under this rule shall be accompanied by a letter from the owner or the occupant of the land to the effect that he has no objection for quarrying minor mineral by the applicant. and this consent shall not be with drawn for any reason during the pendency of the application for grant of quarrying licence or during the currency of the lease. (4) Application received under sub-rule (1) of rule 33 and sub-rules(1) and(2) of this rule shall be acknowledged in FORM-A. (5) Application for grant or renewal of a quarrying licence under this rule shall be disposed of within a period of four months from the date of receipt of application failing which the applicant shall be informed of the delay within fifteen days after the expiry of the said period. “(5A) If an application for renewal of quarrying licence made within the time referred to in sub-rule (2) is not disposed of by the State Government before the date of expiry of licence the period of that licence shall be deemed to have been extended by a further period till the State Government passes the orders thereon”. (6) The period for which the a quarrying licence may be granted or renewed shall not exceed ten years. (7) Maximum area to be permitted for quarrying shall be at the discretion of the COMMITTEE or the Competent Authority, as the case may be. 29 (8) The provision of chapter II and rules 11,13,17,18,19 and 20 shall 'mutatis mutandis' apply for grant of quarrying licence under this rule depending upon whether the application is in respect of specified minor mineral or nonspecified minor mineral. (9) A quarrying licence may contain such other conditions as the State Government or the Competent Authority may, as the case may be, deem necessary in the interest of maintaining the local environment/habitat surrounding the area permitted for quarrying and in the interest of conservation of minerals. 34A. Transfer of licence: (1) No licence shall without the previous consent of the competent authority assign or in any manner transfer the quarrying licence or any right, title or interest therein. (2) Every licensee seeking the previous consent under sub rule (1) shall make application to the competent authority which shall be accompanied by a letter of consent from the owner of occupant of the land to the effect that he has No objection for quarrying minor minerals by the transferee. (3) The competent authority may give its consent for transfer of licence only if a transferor was having in respect of such quarrying licence, and has consented to pay a transfer fee of rupees five thousand per acre to the Government. The Competent authority may also impose such other conditions as it may deem fit. (4) The application for transfer shall be disposed of by the competent authority within a period of ninety days from the date of receipt of application. (5) The competent authority shall issue a licence in Form -T to the transferee within a period of ninety days from the date of recording consent. 35. Quarrying non-specified minor minerals in private land for bonafide domestic use:Notwithstanding anything contained in these rules, occupant of any land may remove from his land any non-specified minor mineral on a small scale for his own use in respect of specific bonafide domestic or agricultural purposes: Provided that the quarrying operation shall not be continued indefinitely and for commercial purposes and that the land is not rendered less fit for cultivation than before: Provided further that the Competent Authority concerned shall informed before commencing quarrying operations under this rule. be 30 CHAPTER VI ROYALTY, DEADRENT, SECURITY DEPOSIT, INTEREST AND MINERAL DESPATCH PERMIT 36. Payment of royalty and dead rent in advance:(1) The holder of a quarrying lease or licence under these rules , shall pay dead rent at the rates specified in SCHEDULE-1 as may be modified from time to time or royalty at the rates specified in SCHEDULE-2 as may be modified from time to time which ever is