COMMERCE AND INDUSTRIES SECRETARIAT NOTIFICATION
No. CI 327 MMM 2010, Bangalore, Dated: 5th February, 2011
The draft of the Karnataka (Prevention of Illegal Mining, Transportation and Storage of Minerals) Rules, 2011 which the Government of Karnataka proposes to make in exercise of the powers conferred by Section 23(C) of Mines and Minerals (Development and Regulation) Act, 1957 (Central Act 67 of 1957) is hereby published for the information of persons likely to be affected thereby and notice is hereby given that the said draft will be taken into consideration after expiry of thirty days from the date of its publication in the Offcial Gazette.
Any objection or suggestion which may be received by the State Government from any person with respect to the said draf before the expiry of the period specifed above will be considered by the State Government. Objections and suggestions may be addressed to the Secretary to Government, (Mines, SSI & Textiles), Commerce and Industries Department, Vikasa soudha, Bangalore - 560 001.
DRAFT RULES
CHAPTER - I
PRELIMINARY
1. Title, application and commencement –
(1) These rules may be called The Karnataka (Prevention of Illegal mining, transportation and storage of minerals) Rules, 2011.
(2) They shall extend to the whole State of Karnataka.
(3) Nothing in these rules shall apply to minor minerals.
(4) They shall come into force from the date of their publication in the official Gazette.
2. Definitions –
(1) In these rules, unless the context otherwise requires
(a) "Act" means the Mines and Minerals (Development & Regulation) Act, 1957 (Central Act 67 of 1957).
(b) "Appellate Authority means the authority appointed by the State Government by notification to perform the function of the Appellate Authority under these rules;
(c) "Authorized offcer" means an offcer is authorized by the Director of Mines and Geology (Competent Authority) where no offcer is authorized.
(d) "Agency authorized to issue Mineral Despatch Permit" means the outsourced agency appointed by the State Government to issue Mineral Despatch Permit (MDP) based on the Mineral Despatch Release Order (MDRO) at places specified by the competent authority.
(e) "Beneficiation" means is a chemical or physical process used to enhance or improve the grade or percentage of the metal content of the mined material or mineral.
(e) "Beneficiation" means is a chemical or physical process used to enhance or improve the grade or percentage of the metal content of the mined material or mineral.
(f) "Beneficiated Minerals" means the mineral the grade of which is improved or enhanced after such physical or chemical process.
(g) "Bulk Quantity" means any unpackaged mineral in large quantity intended for transportation under Mineral Despatch Permit.
(h) "Controlling Officer" means the Director of Mines and Geology, Government of Karnataka.
(i) "Competent Authority" means the Deputy Director and Senior Geologist of the respective jurisdiction, Deputy Director of Mobile Squad, Senior Geologist of Mobile Squad, or any officer of the Directorate of Mines & Geology authorized by the State Government to exercise the powers and perform the function of the competent authority under these rules.
0) "Director" means the Director of Mines and Geology, Government of Karnataka.
(k) "Form" means a form appended to these Rules;
(1) "Government means the Government of Karnataka.
(m) "Material in transit" means minerals excavated fom a mine in the process of transportation from a Mining Lease or a Stock Yard, to its final destination within the geographic territory of India and after obtaining necessary permission required under the Act or rules made there under.
(n) `Mineral trader' (MT)-Means a person/from other than `Lessee' who is interested in trading the minerals and also obtained registration under these rules. The trading includes buying, storing, processing and selling of minerals.
(o) "Mineral. Stock Yard" (MSY) means and includes any land of any defined size used for stocking or storing of a mineral or minerals in packaged form or unpackaged. The minerals(s) so stored may be intended either for transportation by any mode to a specified destination or for purpose of blending or beneficiation at a specified plant or for loading into a railway wagon or ship at a port.
(p) "Mineral Despatch Release Order" (MDRO) means an order issued by the Competent Authority for a specified bulk quantity of mineral to be transported.
( q) "Mineral Despatch Permit" (MDP) means a "Permit" issued under rule-3.
( r) "Mineral Concession Rules," means the Mineral Concession Rules, 1960 issued under Section 13 of the Mines and Minerals (Regulation and Development) Act, 1957.
( s) "Person", means an individual person, lessee of a mining lease or prospecting license, trader in minerals, owner of mineral stockyard, any one in possession of mineral(s) in its natural state or a Firm or a Company established under the Company's Act, 1956. (Central Act I of 1956)
(t)`ROM' means Run Of Mine which requires further processing..
(u) "Section" means Section of the Act.
(2) Words and expressions used, but not defined in these Rules shall have the same meaning assigned to them in the Mines and Minerals (Development & Regulation) Act, 1957 and the Mineral Concession Rules, 1960
CHAPTER - II
MINERAL DESPATCH PERMIT
3. Minerals to be transported only under a valid Permit (MDP):
(1) No person shall transport or cause transportation of any mineral outside the limits of a Prospecting License or a Mining Lease to any pre determined destination without a Mineral Despatch Permit (hereinafer referred to as MDP or PERMIT issued under these Rules) by a Competent Authority.
(2) Application for MDP:- An application for PERMIT shall be made to a jurisdictional Competent Authority in Form-1 which shall be accompanied by a fee as may be notifed by the Government from time to time together with royalty amount calculated at the rate specified in SECOND SCHEDULE of the Act.
(3) Mineral Despatch Release Order (MDRO):- The Competent Authority on a verification of the correctness of the information provided in the application, shall release Mineral Despatch Release Order in Form-2 to the lessee under intimation to the Agency authorized to issue Mineral Despatch Permit. The Competent Authority shall issue the Mineral Despatch Release Order within three working days from the date of application which is complete in all respects. Copy of the Mineral Despatch Release Order shall be marked to the jurisdictional Deputy Conservator of Forest, if the Mining Lease is located in a forest land. The Deputy Conservator of Forest shall issue Forest way pass (FWP) to the Lessee.
(4) If the transport of the mineral is by railway, the competent authority shall issue one permit per rake-wise Mineral Despatch Permit mentioning the quantity of the mineral in Form No. 3.
(5) Non-issue of MDRO: If the competent authority does not issue the Mineral Despatch Release Order within three working days or in case the competent authority rejects application, the applicant. shall have the right of an appeal in writing before the Director of Mines and Geology within thirty days of service of the order of rejection on him or the date fling of the application, whichever is later. No order rejecting an application shall be made without giving the applicant an opportunity of being heard in the matter and indicating the reasons for the rejection.
(i) When there is any royalty or fee or penalty due in respect of a lease holder or stockist, until the due is completely paid off, and / or such lease holder or stockiest has committed violation of rules or breach of any condition of lease deed, if any encroachment outside the lease boundary on prima facie, such violation or the breach of condition is not complied with, the authorized offcer / competent authority shall not issue the Mineral Despatch Release Order / Mineral Despatch Permit.
(6) Issue of MDP: The Mineral Despatch Permit shall be issued in Form-4 in duplicate on the basis of one Mineral Despatch Permit for one vehicle for one trip and shall be valid for such period as specifed in this rules: In case of forest based Mining Leases and Mineral Despatch Permit shall be issued after receipt of the Forest Way Pass.
(7) Vehicles to be fixed with GPS: Before issuing Mineral Despatch Permit to any vehicle, the issuing person shall ensure that the vehicle engaged in the transportation of ore and other minerals as fixed with GPS system.
(8) Validity period of a Mineral Despatch Permit shall be:
(a) from mine head to the destination by Road shall be:
i) Upto 100 kms one day.
i) Upto 100 kms one day.
ii) Beyond 100 kms upto 500 kms, one day for distance of every 100 kms.
iii) Beyond 500 kms it is maximum of eight days.
(b) From mine head to the destination by Rail, maximum period of fifeen days one permit shall be
issued per rake; the quantity mentioned in a Mineral Despatch Permit shall be based on the
capacity of the rake.
issued per rake; the quantity mentioned in a Mineral Despatch Permit shall be based on the
capacity of the rake.
(c) From mine head to destination - partly by road and partly by rail:
i) maximum of one day for a distance of up to 30 kms from mine head to railway siding. (This period is covered within the period issued for rake).
i) maximum of one day for a distance of up to 30 kms from mine head to railway siding. (This period is covered within the period issued for rake).
ii) maximum of ffteen days for transportation through rail.
(d) Further transportation from storage point to port or a factory, as the case may be, would be endorsed by the jurisdictional Competent Authority.
(9) Register of application for MDRO: Every competent Authority issuing the Mineral Despatch Release Order under these rules shall maintain a register in Form No. 5 of applications received. The register shall indicate the entry of the amount of royalty received, quantity of mineral and named of the lessee. The register could be both physically written as well as in digital form.
(10) Monthly Returns by the Lessee: Every permit holder shall submit monthly returns to the Competent Authority in Form-6. The details of Railway Receipts quantity and Inmotion weighbridge quantity shall be recorded to reconcile on quarterly basis.
(11) 'Revalidation of the MDP: If the permit holder is unable to transport the mineral for reasons beyond his control, the permit holder shall apply for revalidation of the MDP before expiry of its validity period to the Competent Authority giving valid reasons in an application which shall be accompanied by a process fee of Rupees one thousand. Such MDP shall be revalidated by the Competent Authority.
(12) Revalidation afer expiry of the validity of MDP: The competent Authority, may, on.a written request of the applicant and afer such enquiry as it deems ft and on being satisfied that for reasons beyond his control the applicant was not able to transport the mineral within the validity period, may renew the permit for another such period from the date of expiry of the permit or from the date of application, whichever is later, subject to payment of a delay condonation fee of Rupees five hundred per day.
(13) Lapsing of MDP: Any unused permit including revalidated permit shall lapse.
(14) Request for Change of Destination stated in a Permit: After the issue of Permit, an application for change of destination shall be entertained by the Competent Authority only once if the applicant satisfies the Competent Authority in writing with valid reasons. The application for change of destination shall be accompanied by a processing fee of Rupees five hundred. If the application for change of destination made after issue of Mineral Despatch Permit but before commencement of transportation, then the validity of the permit remains same, except for change of destination.
CHAPTER - III
REGISTRATION OF STOCK YARDS
4. Registration of New Stock Yard for stocking of minerals:
(1) On and from the date of the commencement of these rules, any lessee or any person having beneficiation plant, intending to stock or store minerals outside the leased area for purpose of benefciation or for the purposes of supplying value addition plants shall first register with the jurisdictional Competent Authority.
(2) Registration of Existing Stock yard: The lessee or any person having beneficiation plant who, on the date of commencement of these rules, is maintaining a mineral stockyard, shall, within a period of three months from the date of commencement of these rules, apply to the Competent Authority for registering his business and place of stock yard.
Provided that any application for registration made after expiry of the said period shall be accepted by the Competent Authority, if it is made within thirty days from the date of expiry of the said period and the applicant satisfies the Competent Authority that he has sufficient cause for not making the application within prescribed time.
(3) Registration of Mineral Trader: A person who intends to buy, store, process and sale of minerals shall register with jurisdictional competent authority by registration fee of rupees ten thousand. The competent authority shall make registration after making due verification of the certificates like, Service tax, TIN, TAN, PAN, KST & CST of the applicant.
(4) Application for registration: Every application for registration shall be submitted in Form-7 which shall be accompanied by a registration fee of Rupees Ten thousand together with a copy of the letter issued by the Industries Department for setting up of a mineral based Industry or beneficiation plant and other documents as prescribed in Form-7.
(5) Monthly Returns: Any person who is having a Mineral stock yard shall maintain an accurate account of the quantity of minerals obtained the source of minerals, sale or other forms of disposal of the minerals in Form-8 which shall be submitted to the competent authority on or before the fifth of every succeeding month.
(6) Inspection of Accounts: All the registers, accounts and other documents, maintain in both physical and digital, form related to receipt and sale of minerals shall be kept open for inspection of the Competent Authority or his Authorized Officers at all reasonable time.
(7) More than one Stockyard: Any mineral stockiest can maintain more than one stock yard if permitted by the Competent Authority from time to time such stock yard shall also be registered.
(8) Validity period of Registration: The period of registration shall be valid for Five years or until cancellation of Registration by the Competent Authority, whichever is earlier.
(9) Application for Renewal: Application for renewal of stock yard shall be submitted in Form-9 accompanied by a renewal fee of Rupees Ten thousand, to the Competent Authority, three months before the expiry of the validity period.
Provided that any application for renewal of registration made after the time limit specified but before expiry of Registration, may be accepted by the Competent Authority, if the applicant satisfes that he had sufficient reason / cause for not making the renewal application within time.
(10) Transportation of Beneficiated Mineral: Any person intending to transport the beneficiated mineral or any mineral from stock yard to destination within the geographic territory of India, shall apply for Mineral Despatch Permit in Form- 10 to the jurisdictional competent authority.
(a) The Competent Authority shall verify whether the receipt of the mineral into the stock yard/Beneficiation plant has already being covered under royalty, if so, shall issue a MDP in
Form-11.
Form-11.
(b) In case of processing and beneficiation, royalty payable shall be determined based on the percentage of lump recoverable from the ROM, the difference of royalty amount shall be
collected from applicant before issue of Mineral Despatch Permits.
collected from applicant before issue of Mineral Despatch Permits.
(c) If the mineral in a stock yard/Beneficiation plant is not covered under prior royalty the Competent Authority shall proceed to take penal action under the provisions of these Rules and
the Act. Before proceeding with such action the Competent Authority shall serve a notice in Form-12.
the Act. Before proceeding with such action the Competent Authority shall serve a notice in Form-12.
CHAPTER - IV
REGISTRATION OF MINERAL BASED INDUSTRIES
5. Registration: Registration of New Mineral Based Industries:
(1) Every industry within the State and outside the State, utilizing or intending to utilize minerals as raw materials from the State of Karnataka shall register with the jurisdictional Competent Authority.
(2) Registration of Existing Industries: Any person having a mineral based industry, within a period of three months from the date of commencement of these rules, shall apply for registering his industry.
Provided that any application for registration made after expiry of the said period may be accepted by the Competent Authority, if it is made within thirty days from the date of expiry of the said period and the applicant satisfies the Competent Authority that he had sufficient reasons for not making the application within time.
(3) Application Form: Every application for registration shall be in Form-13 which shall be accompanied by a registration fee of Rupees Ten thousand and other necessary documents. In case of applications submitted after the stipulated period of three months, the fee shall be Rupees one thousand for upto thirty days and there after Rupees one hundred penalty for delay by every day.
(4) Monthly Returns: Every mineral based industry shall maintain an accurate account of minerals obtained or consumed by the industry and shall furnish the same to the Competent Authority as Monthly Returns in Form-14 on tenth of every succeeding month.
Notes:- (i) Every mineral based industry shall maintain an accurate account of the quantity of minerals obtained, the source of minerals, consumed by the industry and sale or other forms of disposal of the minerals.
(ii) The industry shall submit a certificate approved by competent authority "The ratio of mineral to finished product" to determine the exact quantity of mineral consumed in their industry. For non compliance the competent authority shall proceed to take penal action under the provisions of these rules and act.
(5) Inspection of Accounts: The Registers of Accounts and all related documents in physical or digital format and also the stock of minerals shall be open for inspection by the Competent Authority. The owner or his authorized staff shall provide all reasonable facility for such inspection.
(6) Validation of Registration: Registration granted to the mineral based industry shall be valid for five years from the date of registration or until termination of registration by the Competent Authority whichever is earlier.
(7) Renewal of Registration: Application for renewal of registration shall be fled to the competent authority in Form- 15 accompanied by a renewal fee of Rupees Ten thousand, three months before the expiry of the registration.
Provided that the competent authority may receive the application for renewal of registration made after time limit specified, but before expiry of registration, if the applicant shows suffcient cause for not filing the application within such time.
(8) Mineral based Auditing: The Competent Authority shall conduct an annual auditing of the accounts of the industry. The procedure of Auditing shall be prescribed by the State Government from time to time. If the minerals utilized or intended to be utilized is not covered under prior royalty, the Competent Authority shall proceed to take penal action under the provision of these Rules and the Act. Before proceeding with such action the Competent Authority shall serve a notice in Form- 16.
CHAPTER - V
CHECK POST
6. Establishment of check posts, barriers, weigh bridges and inspection of minerals in transit.
(1) If the Director of Mines and Geology considers it necessary to do so with a view to check the transport and/or storage of mineral(s) raised or without lawful authority and/or to ensure the proper payment of royalty as per the quantity and/or the quality of mineral, may direct the setting up of check post or erection of barrier or recognized computerized weigh bridges or all of them, at any place or places within the State by an order with the terms and conditions as may be specified therein.
(2) Any authorized officer or the officers / personnel authorized by Director of Mines and Geology in this behalf may check any carrier carrying mineral(s) at any place and the persons in charge of the carrier shall furnish a valid MDP in prescribed form and other particulars such as bill or receipt or delivery note on demand by the officer authorized.
(3) At every check post or barrier or recognized weigh bridge set up or recognized under sub-rule (1) or at any other place when so required by' the officer in charge of the check post or barrier or recognized weigh bridge, the person in charge of carrier shall stop the same for examination of mineral in transit and also inspection of records and documents relating to minerals in possession of such person in charge of the carrier. The person in charge of the carrier shall, if so required by the officer in charge of the check post or the barrier or the weigh bridge or any other authorized officer, furnish his name and address, and the name and address of the owner of the carrier and the consigner and the consignee. After checking the mineral and carrier the officer in charge shall put his signature on the valid Mineral Despatch Permit.
(4) If the officer in charge of the check post or barrier or recognized weigh bridge or authorized officer has reason to believe that the mineral(s) are not covered by the MDP, he shall detain and seize the' mineral and carrier from any person in charge of the barrier. Whenever a carrier together with the mineral is seized by an authorized officer, he shall in respect of such person, minerals or as the case may be carrier follow the procedure in accordance with the provision prescribed.
7. Taking possession of seized minerals etc: The Competent Authority may, when it is not practicable to seize the books of accounts, registers and documents or minerals, serve upon the person who is in immediate possession or control thereof, an order to the effect that he shall not remove, part with or otherwise deal with them except with the previous written permission of such authority who may take such steps in accordance with these rules, as may be necessary, for ensuring the compliance of these rules.
8. Inspection of Vehicle: Any Authorized Officer, if he has reason to believe that a vehicle has been or is being used for the transport of mineral in respect of which there is reason to believe a mining offence has been committed, require the driver or other person in charge of the vehicle to stop the vehicle and cause it to remain stationary as long as may reasonable be necessary to examine the contents in the vehicle and inspect all records relating to the mineral carried which are in possession of such driver or other person in charge of the vehicle.
9. First Information Report: Any Authorized Officer, who detecting a mining offence and seizing any property shall file a written complaint before the jurisdictional Magistrate for taking cognizance of the ofence.
10. Certificate of Competent Authority to be an evidence: Any document purporting to be a Certificate under the hand of the Competent Authority not below the rank of Deputy Director and who is so authorized by the State Government in this behalf may be used as evidence of the facts stated in such certificate in any proceedings under these rules, but a Court may if it thinks ft, and shall on application of the prosecution of the accused person, summon and examine any such Competent Authority as to the subject matter of his certificate.
11. Overloading: Any vehicle/carrier carrying mineral in excess of the permitted quantity shall offload the excess quantity of mineral at the specified place at their own risks and costs along with the penalty to be paid as per the provisions of the Motor Vehicle Act.
12. Penalties:- Any person who contravenes any of the provisions of these rules shall be punishable with fine of:
(a) Rs.10,000/- if the offence is committed first time.
(b) in the event of repeated offence, Rs.25,000/- or imprisonment for a term which may extend to one year or with both.
Any person who buys or sells minerals except under and in accordance with the registration shall be punishable with a fne which may extend to Rs.25,000/- or imprisonment for a term which may extend to one year or with both.
Any person who transport minerals except to the destination specified in MDP shall be punishable with imprisonment for one year or fne which may extent to Rs.25,000/- or with both.
Whoever intentionally obstructs the competent authority or any other offcer in performing his duties (is imposing penalties etc.) under these rules shall be punishable with an imprisonment for a term which may extend to 6 months or fne which may extend to Rs. 10,000/- or with both.
13. Repeal and Savings:
(1) The Karnataka Mineral (Regulation and Transport) Rules, 2008 are hereby repealed.
(2) Notwithstanding such repeal, any act done or order passed under the earlier Rules 2008 shall be deemed to have been done or passed under these rules, except to the extent that such act or order is inconsistent with the provisions of these rules.
(3) All Acts done, proceedings taken or notifications or orders issued and sentences passed under the. Karnataka. Mineral (Regulation and Transport) Rules, 2008-shal be valid and operative as if they had been done, taken, passed or issued in accordance with the provisions of these rules, and no suit or other legal proceedings shall be maintained or continued against any person whatsoever, on the ground that any such acts, proceedings or sentences were not done, taken or passed in accordance with the provisions of these rules.
By order and in the name of the Governor of Karnataka,
G.A. ADAGATTI
Joint Secretary to Government (Mines) Commerce and Industries Department
