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Karnataka Minor Mineral Concession Rules, 1994

CONTENTS

CHAPTER 1 :- PRELIMINARY
1. Title And Commencement
2. Definitions
CHAPTER 2 :- GENERAL
3. Quarrying To Be Under Quarrying Lease Or Quarrying Licence
4. Competent Authority
5. Controlling Authority
6. General Conditions Of Quarrying Lease And Licence
7 . P o w e r Of The Competent Authority To Specify Additional
Conditions
8. Restrictions On Grant Or Renewal Of Quarrying Lease Or Licence
8A. Section 8A
8B. Notifying The Area For Grant Of Lease By Tender-Cum-Action
CHAPTER 3 :- G R A N T OF QUARRYING LEASE FOR SPECIFIED
MINOR MINERALS
9. Application For Grant Or Renewal Of A Quarrying Lease
10. Exemption Of Security Deposit
11. Grant Or Renewal Of Quarrying Lease
12. Priorities
13. Register Of Application And Quarrying Lease
14. Disposal Of Application For Grant Or Renewal Of Lease
15. Maximum Area Of Quarrying Lease To Be Granted
1 6 . Periods For Which Quarrying Leases May Be Granted Or
Renewed
17. Survey And Demarcation Of The Area Granted
18. Execution Of Quarrying Lease
19. Surrender Of Lease
19A. Section 19A
20. Rights Of The Lessee
CHAPTER 4 :- GRANT OF QUARRY LEASES FOR NON-SPECIFIED
MINOR MINERALS
21. Section 21
21(A). Grant Of Quarrying Permits
2 2 . Scrutiny Of Applications, Inspection Of Applied Area And
Disposal Of 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 Refusal
29. Survey And Demarcation Of The Area Granted
30. Execution Of Lease Deed
31. Conditions Of Quarrying Lease
31A. Notification For Grant Of Quarrying Lease
31B. Manner Of Submission Of Tender
31C. Joint Tender
31D. Disqualification
31E. Withdrawal Of Tender
31F. 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. Rejection Of Tender Or Bids
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
CHAPTER 5 :- LI CENCE FOR QUARRYING MINOR MINERALS IN
PRIVATE OR PATTA LANDS
32. Quarrying Licence
33. Quarrying By Pattadars In Ex-Madras State Territory
3 4 . G rant Or Renewal Of A Quarrying Licence In Private Lands
Other Than Those Referred To In Rules 32 And 33
34A. Transfer Of Licence
3 5 . Quarrying Non-Specified Minor Minerals In Private Land For
Bonafide Domestic Use
CHAPTER 6 :- R O Y A LT Y, DEADRENT, SECURITY DEPOSIT,
INTEREST AND MINERAL DESPATCH PERMIT
36. Payment Of Royalty And Dead Rent In Advance
37. Head Of Account To Which Royalty Etc., To Be Credited
38. Refund Of Security Deposit
39. Recovery Of Amount Due To The Government
40. Issue Of Annual Audit Reports
41. Payment Of Interest
42. Transport Of Minor Minerals
CHAPTER 7 :- C O N T R O L L I N GOF UNAUTHORISED
TRANSPORTATION OF MINOR MINERALS, CHECKING OFMINERALS
IN TRANSIT AND UNAUTHORISED QUARRYING OFFENSES
43. Checkposts And Checking Of Minerals In Transit
44. Offenses
45. Termination Of Lease Or Licence Held By An Offender
46. Power Of Entry, Inspection Etc
CHAPTER 8 :- DI SPOSAL OF SEIZED OR CONFISCATED MINOR
MINERALS AND MINOR MINERALS LEFT AFTER THE EXPIRY OR
TERMINATION OF LEASE THROUGH AUCTION SALE
47. Procedure For Disposing Seized Minor Minerals
48. Sale To Be Notified
49. Disqualification To Bid
50. Earnest Money
51. Conduct And Confirmation Of Sale
52. Penalty For Non-Removal Of Auctioned Minor Mineral
CHAPTER 9 :- REVISION AND MISCELLANEOUS
53. Revision
54. Delegation Of Powers
55. Power To Rectify Apparent Mistakes
56. Relaxation Of Rules In Special Cases
56A. Manner Of Payment Of Fees Etc
57. Application Of These Rules For Renewal
58. Repeal And Saving
59. Transitory Provisions
SCHEDULE 1 :- SCHEDULE 1
SCHEDULE 2 :- SCHEDULE 2
SCHEDULE 3 :- SCHEDULE 3
SCHEDULE 4 :- SCHEDULE 4
SCHEDULE 5 :- SCHEDULE 5
Karnataka Minor Mineral Concession Rules, 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 1 PRELIMINARY
1. Title And Commencement :-
(1) These rules may be called the Karnataka Minor Mineral
Concession Rules, 1994.
(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 appointed
under rule 4;
(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 under
these rules;
(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.
CHAPTER 2 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.
(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.
(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. Section 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.

8B. 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
t o quarrying specified or nonspecified minor mineral in any area
belonging to the State Government and available for grant, as may
b e specified in such Notification, shall be granted by tender-cub-
action in accordance with the provisions of Chapter IV A.
( 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 3 GRANT OF QUARRYING LEASEFOR 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. 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;
1 A ) 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;
(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;
(vi) 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 following

Registers, namely:-
(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.
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 under
this chapter shall not exceed twenty years in any case.
(2) A quarrying lease under this chapter may be renewed for two
periods each not exceeding twenty years.
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;
i i ) 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.
(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 lessees 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
t h i s 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
C omp et en t Authority accepts surrender and lessee delivers
possession of the quarry or part of the quarry area to the
Competent Authority.
(5) At the time of renewal of the quarrying lease, the lessee shall
be entitled to surrender any part of the leased area.
19A. Section 19A :-
(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."

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.
C HA P T E R 4 GRANT OF QUARRY LEASES FOR
NON-SPECIFIED
MINOR MINERALS
21. Section 21 :-

(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 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 Member
Secretary
v) 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".

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 application,
on first-come first basis;
(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.
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.
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
t h e 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.
CHAPTER IVA GRANT OF QUARRYING LEASE BY TENDER-CUM-AUCTION

31A. 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) Name of the minor mineral.
2) Survey Number, extent of the area and boundaries.
3) Name of the Village, Taluk and District.
4) The period of lease.
5) 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 years 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
b e considered, accompanied by such earnest money deposit shall
not be considered.
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 years dead rent for the mineral
i n 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.
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.
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.
i i ) 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.
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 assign, sublet, mortgage or in any other manner transfer the
Quarrying Lease or any right, title or interest therein, or :
B 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 has accepted all the conditions attached to the lease and
liabilities which the transferor was having in respect of such lease:
B 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).
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.

C H A P T E R 5 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
f o r 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

i n 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.
(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.
(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 be
informed before commencing quarrying operations under this rule.
CHAPTER 6 ROYALTY, DEADRENT, SECURITYDEPOSIT, 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 bemodified from time to time which ever is
more whether minor mineral is removed or consumed by him or his
agent, manager, employee or contractor. Provided that no such
royalty shall be payable in respect of leases for clay in tank bed
with an Achcat not exceeding 100 hectares.
Explanation: Royalty shall also be payable under this rule in respect
of minor minerals classified as waste rock having volume not
exceeding 0.08 cubic meters generated in any ornamental and
decorative stone quarry and waste rock rejects of any size not
exceeding 0.02 square meters generated in any "shahabad stone"
quarry.
(2) The dead rent shall be paid in advance at every six months.
(3) No person shall remove or transport or cause to be removed or
transported any minor mineral without paying the royalty or dead
rent.
(4) The State Government may by order exempt the dead rent or
reduce the rate of dead rent payable by companies or undertakings
owned by the State Government.
37. Head Of Account To Which Royalty Etc., To Be Credited
:-
T h e royalty, dead rent, penalty amount, security deposit and
auction sale proceeds payable under these rules, shall be credited
into the Head of Account specified below:
0853 - Non Ferrous Mining and Metallurgical Industries
102 - Mineral Concession Fees, Rents and Royalties
1 - Geological Department
05 - Royalty on Minor Minerals.
38. Refund Of Security Deposit :-
On an application made by an applicant whose application in
FORMALP or FORM-R has been rejected,the security deposit may
be refunded to such applicant within sixty 60 days from the date of
receipt of the application for refund, if dead rent or royalty or
penalty is not due from him;
Provided that where the holder of a quarrying lease or licence is
liable to pay either penalty, royalty or dead rent or against whom
complaints of unauthorised quarrying or transportation of minor
mineral has been registered, the security deposit of such person
shall not be refunded until a no objection certificate is obtained
from the concerned Competent Authority.
39. Recovery Of Amount Due To The Government :-
If dead rent, royalty or penalty or other amount payable by a
person is due to the State Government, and is not paid within
ninety days next after the date fixed under these rules for its
payment, the Competent Authority shall give notice to the defaulter
requiring him to pay the dues within sixty days from the date of
receipt of the notice failing which the Competent Authority may,
forfeit the security deposit and report to the Deputy Commissioner
concerned to recover the balance amount due in accordance with
Section 25 of the Act.
If the holder of a quarrying lease or licence makes nay default in
the payment of royalty or dead rent payable under rule 36, the
competent authority shall give notice to such holder of quarrying
lease or licence, requiring him to pay royalty or deed rent within
sixty days from the date of receipt such notice failing which the
competent authority may without prejudice to any other action that
may be taken against such holder, determine the lease or licence
and forfeit the whole or part of the security deposit.
40. Issue Of Annual Audit Reports :-
The Competent Authority shall, after conducting inspection of
register of accounts of production, despatch and stock, quarry area
and connected stone cutting and polishing unit or crushing unit,
stock yards, if any, connected with the quarry, submit every
financial year a report to the Director. The Competent Authority
may call for from the holder of a quarrying lease or licensee any
other details or documents, which are required for the preparation
of annual audit, report. The holder of a quarrying lease or licence or
his agent shall make available such details and documents. The
report shall be issued before the end of June of the year next
following the financial year.
41. Payment Of Interest :-
The State Government may charge simple interest at the rate of
fifteen percent per annum on any dead rent, royalty or penalty or
other sum due to the State Government under the Act or these
rules from the sixtieth day after the expiry date fixed for payment
of such rent, royalty, penalty or other sum.
42. Transport Of Minor Minerals :-

(1) No person shall transport or cause to be transported any minor

mineral except under or in accordance with a MINERAL DESPATCH
PERMIT in FORM-MDP issued underthis rule by the Competent
Authority or any other officer authorised by the State Government
or the Director.
Any person desiring to transport the minor mineral by road, by rail
or any other means of transport shall apply in Form - AP to the
concerned competent authority for issue of permit.
(3) The Competent Authority after such enquiry as it deems fit, if
satisfied that the information furnished in the application is correct
and the applicant is entitled for a permit, it may issue a permit in
FORM-MDP.
(4) The permit shall be issued on the basis of one permit for one
vehicle basis.
(5) The permit shall be valid for a period not exceeding seven days
from the date of issue;
Provided that the Competent Authority may, on a written request
by the holder of permit and after such enquiry as it deems fit
renew the permit subject to collection penalty at the rate of five
percent of the royalty per day from the date of expiry of the permit
till he makes a written request to the competent authority.
CHAPTER 7 CONTROLLING OF UNAUTHORISEDTRANSPORTATION
OF MINOR MINERALS, CHECKING OF MINERALS IN TRANSIT AND
UNAUTHORISED QUARRYING OFFENSES
43. Checkposts And Checking Of Minerals In Transit :-
( 1 ) The State Government may, by notification, direct the
establishment of Check posts or erection of barriers or both at such
place or places as it thinks fit with a view to prevent or check
unauthorised transportation of minor minerals and evasion of
royalty or commission of any other offence in respect of minor
minerals;
Provided that till such check posts are established or barriers are
erected in any place or places, the State Government may, notify
the check posts already established or barriers erected in such
place or places under the Karnataka Sales tax Act, 1957 or the
Karnataka Forest Rules 1964 to be the check posts or barriers for
the purposes of these rules also.
( 2 ) Every driver or person in charge of a vehicle carrying minor
mineral shall be in possession of a valid permit and waybill, sale or
d e l i v e ry note and FORM-39 issued by Commercial Taxes
Department containing necessary particulars in respect of such
minerals and shall produce the same before any authorised officer
in charge of a check post or barrier.
(3) Any officer authorised by the State Government in this behalf
(herein after referred to as authorised officer) may check a vehicle
carrying minor mineral at any place, and the owner or person in
charge of the vehicle shall produce the permit and other documents
such as waybill etc, as demanded by the authorised officer.
(4) At every check post or barrier set up or notified under sub-rule
(1) or at any other place, when so required by any authorised
officer, the driver or any other person in charge of the vehicle
carrying minor mineral shall stop the same and keep the vehicle
stationed so long as may reasonably be necessary, and allow the
officer in charge of the check post or the barrier or, as the case
may be, the authorised officer to examine and take measurements
of the minor minerals in transit and inspect all records relating to
the minerals in possession of such driver or other person. The
driver or other person shall, if so required by the officer in charge
of the check post or the barrier or the authorised officer, give his
name and address and also that of the owner or the consignor and
consignee. After checking the minerals and vehicle, the officer shall
put his signature and rubber stamp on the permit so as to avoid
any further checking at another check post.
(5) If the driver or person in charge of the vehicle fails to produce a
valid permit, the officer in charge of the check post or barrier may
require the driver or the owner or person in charge of the vehicle to
pay penalty equal to five times the amount of royalty payable as
per SCHEDULE-2.
(6) The Officer in charge of the check post or the barrier or the
authorised officer may seize and confiscate any minor mineral
which is under transit by a vehicle and as well as such vehicle if the
owner or the driver or person in charge of the vehicle refuses to
make payment as required under sub-rule(5).
(7) The officer in charge of the check post or the barrier or the
authorised officer shall give a receipt for having seized such minor
mineral together with vehicle to the person from whose possession
or control it is seized.
(8) Whenever an order of confiscation in respect of minor mineral
seized under sub-rule(6) is made the confiscating officer shall give
an option to the owner or driver or person in charge of the vehicle
to pay the amount as required under sub-rule (5) in lieu of such
confiscation. In case of failure of the Driver, owner or person in
charge of the vehicle to exercise such option, the confiscated
material may be disposed of by the officer by auction sale;
Provided that no such minor mineral confiscated under sub-rule(6),
shall be disposed of by the confiscating officer before expiry of
three days from the date of such confiscation and, till such time
option shall remain with the owner or person in charge of the
vehicle to carry the minor mineral after paying the penalty
assessed.
44. Offenses :-
2 (I) Any person who contravenes the provisions of Sub-rule(1) of
rule 3 shall, on conviction be punished with imprisonment for a
term which may extend to one year or with fine which may extend
to rupees five thousand or with both, and in the case of a
continuing contravention with an additional fine which may extend
to five hundred rupees for every day during which such
contravention continues after first such contravention.
*2 (2) Any persons who undertakes any quarrying operation in
respect of any minor minerals "either without a licence or quarrying
permit granted under these rules or in contravention of the terms
and conditions of any licence or permit shall be punishable with
imprisonment for a term which may extended to one year or with
fine which may extended to five hundred rupees for every day
during which such contravention continues after conviction for the
first such contravention."
45. Termination Of Lease Or Licence Held By An Offender :-
Where the holder of a lease or licence has committed an offence
u n d e r sub-section (1) of section 21, without prejudice to the
penalty for which the holder of a lease or licence is liable under that
sub-section, the Competent Authority may, after such enquiry as it
deems fit, terminate the quarry lease or licence held by such
person.
46. Power Of Entry, Inspection Etc :-

(1) Any officer empowered by the State Government by notification

in this behalf (hereinafter in this rule referred to as empowered
officer) may, for the purpose[ of these rules require any quarry
operator, lessee, licensee, dealer in minor minerals, owner or
manager of granite cutting and polishing units, transport of minor
mineral, clearing and forwarding agents for granite and other
specified minor minerals, to produce before him the accounts,
registers and other documents and to furnish any other information
relating to quarrying operation or business or trade in minor
minerals.
(2) All accounts registers and other documents pertaining to the
business of a dealer, lessee, licensee, the minerals in his possession
or in the possession of his agent including clearing and forwarding
agents or broker and their offices, go down, cutting and polishing
units, factory, vehicle or any other place where the business is done
or accounts are kept shall be open for entry and inspection and
examination at all reasonable times by the empowered officers.
(3) If the empowered officer has reason to suspect that any dealer,
lessee or licensee is attempting to evade payment of royalty or
other dues under these rules, he may, for reasons to be recorded in
writing, seize such mineral, accounts registers or other documents
of the dealer, lessee or licensee as he may consider necessary and
shall give receipt to the dealer, lessee, licensee or any other person
from whose custody such mineral, accounts registers, documents
are seized. The accounts registers and documents so seized shall be
retained by such officer only for their examination or for any
enquiry or proceedings under these rules or for prosecution:
Provided that the mineral, accounts registers and documents so
seized shall not be retained by such officer beyond a period of
thirty days from the date of seizure without the written order of the
Director for reasons to be recorded in writing:
Provided further that before returning the minerals, accounts
registers and documents, the empowered officer may require that
the dealer, lessee or licensee shall give a written undertaking that
the minerals, accounts registers and documents shall be presented
whenever required by the empowered officer for proceedings under
these Rules and that such undertaking shall be supported by a
security in such form as may be specified for a total sum calculated
at the rate of five times the royalty prevailing as per schedule 2 for
the possession or utilisation of minerals not accounted for.
(4) The empowered officer may, after giving the dealer/lessee/
licensee an opportunity of being heard and holding such further
enquiry as he may consider fit, realise from him, the cost of the
mineral for the possession or utilisation of mineral not accounted
for.
(5) For the purpose of sub-rule (2) and (3), the empowered officer
shall have powers to enter and search at all reasonable times, any
offices, go down, stone cutting and polishing units, factory or
vehicle or any other place of business or any building or place
where, the empowered officer has reason to believe that the dealer,
lessee or licensee keeps or for the time being keeping any mineral,
accounts registers or other documents pertaining to his business or
quarrying operations.
(6) Such empowered officer may, when it is not practicable to seize
any books or accounts registers, documents or mineral, serve upon
t he dealer, lessee or licensee or the person who is in immediate
possession or control thereof, an order that he shall not remove,
part-with or otherwise deal with them except with the previous
permission of such empowered officer who may take such steps in
accordance with rules, as may be necessary for ensuring compliance
of this sub-rule.
(7) The power conferred by sub-rule (4) and (5) shall include the
power to break open any box or receptacle in which any accounts
registers or documents of dealer, lessee or licensee may be
contained or to break open the door of any premises where any
such mineral, accounts registers or documents may be kept or to
place marks of identification on his books of accounts, registers or
documents to make or cause to be made extracts or copies thereof:
Provided that the power to break open the door shall be exercised
only after the dealer, lessee or licensee or any other person in
occupation of the premises, if he is present therein, fails or refuses
to open the door on being called upon to do so.
(8) The empowered officer may require any person:-
(a) Who transports or holds in custody of any mineral for delivery
to or on behalf of any dealer, lessee or licensee to give any
information likely to be in his possession in respect of such mineral
or to permit inspection thereof, as the case may be;
( b ) Who maintains or has in his possession any accounts or
documents relating to the trade or quarrying operations, to produce
such accounts or documents for inspection.
(9) The provisions of the Code of Criminal Procedure 1973 (Central
Act 2 of 1974) relating to searches shall apply, so far as may be, to
the searches made under these rules.
C H A P T E R 8 DISPOSAL OF SEIZED ORCONFISCATED MINOR
MINERALS AND MINOR MINERALS LEFT AFTER THE EXPIRY OR
TERMINATION OF LEASE THROUGH AUCTION SALE
47. Procedure For Disposing Seized Minor Minerals :-

(1) All minor minerals seized under sub-section (4) of section 21 of

the Act, sub-rule(6) of rule 44 and minor minerals left at the quarry
after the expiry or termination of lease or licence shall be disposed
of by public auction by an officer authorised in this behalf
(hereinafter referred to as the authorised officer)
(2) The minimum rate per unit volume or weight of any minor
mineral which is classified in FORM-O shall be fixed in accordance
with the rate specified in SCHEDULE-3.
48. Sale To Be Notified :-
A notification of sale by auction shall be published in the official
Gazette and in not less than two daily news papers in Kannada and
in English having vide circulation;
Provided that where the estimated value of minor minerals sought
to be auctioned is less than rupees twenty five thousand, the sale
notification may be displayed on the notice board of the office of
t h e authorised officer and the office of the Tahsildar of the
concerned taluk and copies of such sale notification shall also be
circulated in the locality.
49. Disqualification To Bid :-
No person who is black-listed or declared to be insolvent or minor
or who has failed to pay State Government dues outstanding either
in his name or in the name of a company owned or controlled by
him or in the name of a firm in which he is a partner, shall be
eligible to bid in the auction.
50. Earnest Money :-

(1) The amount of earnest money to be deposited by a bidder shall

be at the rate of twenty five percent of the total amount of
minimum rate assessed for the minor mineral lot offered for auction
sale.
(2) Earnest money deposit shall be paid by the bidder through a
demand draft drawn in favour of the authorised officer.
(3) Persons intending to deposit and bid as agent of another person
or company or firm shall produce before the authorised officer the
power of attorney duly executed by such another person or
executed on behalf of such company or firm and signed either by
all the directors or partners, as the case may be.
(4) Persons intending to deposit and bid as agents of Government
undertakings shall produce before the authorised officer a letter of
authority from the Head of such undertaking.
51. Conduct And Confirmation Of Sale :-

(1) No auction sale shall be conducted when a single bidder is

present.
(2) Prior to the commencement of the auction sale, the sale
conditions shall be read out and the signature of all intending
purchasers shall be obtained on the sale notice in the presence of
the authorised Officer in token of their having been appraised of,
and having accepted, the sale conditions.
(3) If the bid of any person participating in the sale is disputed, the
decision of the authorised officer on the spot shall be final and
binding.
(4) The bidder in whose favour the minor mineral lots have been
decided shall affix his signature in the "Auction Sale Slip Form"
against the amount offered by him in token of his having accepted
the correctness of the transaction entered in the Sale Slip Form.
(5) Where the highest bid in an auction sale is complete in all
respects and is equal to or exceeds the minimum grade-wise price
specified in SCHEDULE-3 the authorised officer shallaccept the bid
if it is within his power of sanction as specified in SCHEDULE-4 and
shall issue confirmation or acceptance order:
Provided that if the bid, the value of which is not within the power
o f sanction of the authorised officer he shall, on the same day or
the next working day submit to the concerned confirming authority
specified in SCHEDULE-4 the sale records along with his opinion on
the quality of material offered as per Form-O, on the general result
o f the sale, the demand for specified variety or type of minor
mineral amongst the lots offered for auction sale and any other
relevant information gathered during auction, for confirmation and
acceptance of the bid. The confirming authority shall, on accepting
the bid, issue confirmation or acceptance order.
(6) The confirming authority may, before taking decision to accept
the bid call for further details. The confirming authority shall as far
as possible, take a decision within three days from the date of
receipt of the report under sub-rule (5).
(7) Immediately on the acceptance and confirmation of the bid, the
bidder shall remit the entire bid amount on the spot and obtain a
receipt. It shall thereafter be the responsibility of the bidder to
arrange for protection and transport of the auctioned mineral.
However, the bidder shall, within fifteen days from the date of
confirmation of auction, arrange to remove the minor mineral well-
outside the area (outside the survey number) where the sale was
conducted.
52. Penalty For Non-Removal Of Auctioned Minor Mineral :-
Penalt y as specified in SCHEDULE-5 shall be levied by the
concerned Competent Authority or authorised officer for non-
removal of the auctioned minor mineral or for non-payment of the
final bid amount.
CHAPTER 9 REVISION AND MISCELLANEOUS
53. Revision :-

(1) Any person aggrieved by an order of the Competent Authority

not above the rank of Additional Director may, within sixty days of
the date of communication of such order apply in Form-RV to the
Controlling Authority for revision of such order.
(2) Any person aggrieved by an order of the competent authority
above the rank of Additional Director may, within two months from
the date of communication of such order apply in FORM-RV to the
State Government for revision of such order:
"(2A) Any person aggrieved by the order of the Director rejecting
any tender or offer or bid under rule 31 I may within sixty days
from the date of such order apply in Form RV to the State
Government for revision of such order".
Provided that the Controlling Authority or the State Government, as
the case may be, may, if he or it is satisfied that the applicant had
sufficient cause for not making the application in-time, entertain
such application if it is made within a period of thirty days from the
date of expiry of the aforesaid period of sixty days.
(3) An application under sub-rule (1) or (2) or (2A) shall be
accompanied by a treasury challan for having paid a fee of rupees
one thousand five hundred.
(4) On receipt of an application for revision under sub-rule (1), (2)
or (2A) the Controlling Authority, or as the case may be, the State
Government, may call for the records of the case and pass such
order thereon as he or it may deem fit:
Provided that no order under this rule shall be made to the
prejudice of any person unless he has been given a reasonable
opportunity of being heard.
(5) Any application for revision made under rule 61 of the repealed
Karnataka Minor Mineral Concession Rules, 1969 and pending
before the Controlling Authority or the Karnataka Appellate
Tribunal, shall on the commencement of these rules, stand
transferred respectively to the concerned Controlling Authority or
the State Government, and it shall be decided by them as if it had
been filed before them.
54. Delegation Of Powers :-

(1) The State Government may, by notification in the official

gazette direct that any power exercisable by it under these rules
may, in relation to such matters and subject to such conditions, if
any, as may be specified in the notification be exercisable also by
such officer or a or authority subordinate to the State Government.
55. Power To Rectify Apparent Mistakes :-
Any clerical or arithmetical mistakes in any order passed by the
Competent Authority, Director or the State Government or any
other authority or officer under these rules and any error arising
therein from accidental slip or omission may, within one year from
the date of the order be corrected by such authority or officer, as
the case may be.
Provided that no order prejudicial to any person shall be passed
unless he has been given a reasonable opportunity of being heard.
56. Relaxation Of Rules In Special Cases :-

(1) In case where the State Government is of the opinion that

public interest so requires it may authorise the grant of a quarrying
lease or licence for quarrying or reserve any land on such terms and
conditions other than those prescribed in these rules as the State
Government may by order specify.
(2) Not withstanding anything contained in these rules such
safeguards, territorial, financial or otherwise may be provided to
the lessees or licensees with a view to safeguard the interest of any
industry or trade in order to avoid unhealthy competition among
the lessees and licensees and to prevent any fall in the trade and to
see that the minor mineral is exploited in a scientific and systematic
manner.
56A. Manner Of Payment Of Fees Etc :- Not withstanding anything
contained in these rules where the fees, earnest money, security
deposit or any other amount payable under these rule is required to
be paid through a treasury challan, may also be paid by a demand
draft on a scheduled Bank, payable at Bangalore in favour of the
Government of Karnataka.

57. Application Of These Rules For Renewal :-

Where a quarrying lease or any other right for quarrying a minor
mineral has been granted before the commencement of these rules
is renewed after such commencement, these rules shall apply in
relation to such renewal of a quarrying lease or licence granted
after such commencement.
58. Repeal And Saving :-
The Karnataka Minor Mineral Concession Rules, 1969 are hereby
repealed; Provided that the repeal shall not affect the previous
operation of the repealed rules, and, anything done or any action
taken there under shall be deemed to have been done or taken
under the corresponding provisions of these rules.
59. Transitory Provisions :-

(1) Where any person who had already applied under the repealed
rules for obtaining a quarrying lease or permit and such application
is pending consideration immediately prior to the commencement of
these rules, such person may, within thirty days from such
commencement, apply afresh for grant or renewal of quarrying
lease or permit under these rules.
(2) All applications made under the repealed rules for grant of a
quarrying lease prior to the commencement of these rules and
pending consideration on the date of such commencement shall
abate and the fee and security deposit paid in respect of such
application shall be refunded to the applicant unless he applies
afresh under sub-rule (1) in which case the fee and security deposit
so paid shall be adjusted towards the fee and security deposit
payable in respect of the applications made afresh.
Any applications for grant or renewal of a quarry lease, licence or
permit pending consideration immediately prior to the
commencement of these rules shall be consider in accordance with
the provisions of the said rules as amended before these rules.
SCHEDULE 1
SCHEDULE 1
(See sub-rule (1) of Rule 36)
DEAD RENT

Rate per
Sl.No Name of Minor Mineral acre/annum
Rs.
1. ORNAMENTAL & DECORATIVE BUILDING STONES. 25,000
(As defined under clause (m) of rule 2)
2. Felsite & its varieties suitable for use as Ornamental 25,000
Stones
3. Quartzite & Sandstone and their varieties suitable 25,000
for use as Ornamental stones.
4. Marble or crystalline Limestone as ornamental 25,000
Stone.
5. Bentonite 25,000
6. Fuller’s Earth 25,000
7. Limestone under title “Shahabad Stone” 15,000
8. Lime stone (Non-Cement) 15,000
9. Ordinary Building Stones. (As defined under clause -
(g) of rule 2)
a Bangalore, Kolar, Mysore, Mandya & Tumkur 15,000
b Other Districts 10,000
10. Limeshell 15,000
11. Lime Kankar 15,000
12. Agate & Chalcedony 15,000
13. Ordinary Sand 10,000
14. Brick & Tile clays 5,000
15. Steatite used for making household articles 10,000
16. Sandstone used for making household articles. 10,000
17. Murram 3000
18. All other minor minerals 5,000

SCHEDULE 2
SCHEDULE 2
(See sub rule (1) of Rule 36 )
ROYALTY
 Rate per
Sl.No Name of Minor Mineral unit/quantity
Rs.
1. ORNAMENTAL & DECORATIVE BUILDING STONES. (As defined
under clause (m) of rule 2)
A) DYKE ROCK
(i) Black granites:
a) Mysore & Chamarajnagar District. 3,000 per M 3
b) All other districts other than (a) above. 2,500 per M 3
ii) Other varieties of dyke other than Black granites 1500 per M 3
(Entire state)
B) (I) PINK & RED GRANITES
[ILKAL PINK variety] (i) Hungund Taluk of Bagalkot
& Badami taluk of Bijapur district, Kushtagi of 2,500 per M 3
Koppal district
(ii) Pink & Red granites, gneisses & their textural & 1,500 per M 3
structural varieties, (other than ILKAL PINK variety)
C) GREY & WHITE GRANITES & Their varieties
(i)Very fine grained grey Granite [SIRA GREY
variety]. Sira, Madhugiri of Tumkur dist. 1,500 per M 3
Chintamani, Gudibande,Siddlaghatta of Kolar dist.
Hosakote of Bangalore district.
ii) Grey & White granites & their textural varieties
having shades of grey, black & white colours, 1,000 per M 3
(other than (I) above) Entire State
iii) Grey Granite of Sadarahally Koira of Bangalore 600 per M 3
Rural District.
2. Felsite and its varieties suitable for use as 1,200 per M 3
Ornamental Stone – Entire State
3. Granite and Sandstones and their varieties suitable 1,200 per M 3
for use as ornamental Stones – Entire State.
4. Marble or crystalline limestone as ornamental 1,200 per M 3
stone. – Entire state.
5. Bentonite -- Entire state 200 per MT
6. Fullers Earth – Entire State 200 per MT
7. Limestone under the title “Shahabad Stone” 80 per 10 Sq.
m
8. Limestone (Non-Cement) when used for building 20 per MT
stone -- Entire State
9. Ordinary Building stones --Entire State (As defined 30 per MT
under clause (g) of rule 2)
10. Limeshell – Entire State 60 per MT
11. Lime Kankar (Non-Cement) – Entire State 25 per MT
12. Agate, Chalcedony, Flint – Entire State 120 per MT
13. Ordinary Sand: Entire State 30 per MT
14. Steatite and sand stone used for making household 20 per MT
utensils/articles – Entire State
15a. Murram (All types of soils) – Entire State 10 per MT
 b Clay used for manufacturing tiles & Bricks 20 per MT
30% of the
16. All other minerals – Entire State sale value at
Pit mouth
17. Waste rocks generated in ornamental stone quarry 200 per Tonne
-- Entire State see explanation under rule 36 or 600 per M3.
18. Irregular shaped waste rock, quarry which is not 30 per MT
suitable for ornamental purposes – Entire State.
19. Waste rocks generated in Shahabad stone quarries. 30 per MT
– Entire State. see explanation under rule 36
20. Finished kerb stones/cubes not exceeding 30 cms. 80 per MT
Each face. – Entire State.

SCHEDULE 3
SCHEDULE 3
(See Sub-Rule(2) of Rule 47)
MINIMUM RATE PER UNIT VOLUME OR WEIGHT OF MINOR MINERALS

Classification Code as Unit of

Sl.No per Measurement Minimum Rate
form O
1. Lst Tonnes Rs.40/- Tonne
2. Lsh Tonnes Rs.30/- Tonne
i) Bst-1 Tonnes Rs.50/- Tonne
3. ii) Bst-2 No.of Stones Rs.1/- Size stone
iii) Bst-3 Tonnes Rs.30/- Tonne
4. OS Tonnes Rs.30/- Tonne
5. Pbl Tonnes Rs.50/- Tonne
6. Cly Tonnes Rs.20/- Tonne
7. Flr Tonnes Rs.250/- Tonne
8. i) B(O) Number of Bricks Rs.500/1000 Bricks
II) B(M) Number of Bricks Rs.750/1000 Bricks
9. Sh.ST Sq.mt Rs.300/10 Sq.Mt.
10. Granites
a) BLG-1 Cu.Mt Rs. 500/- Cu.Mt
b) BLG-2 Cu.Mt Rs. 1500/- Cu.Mt. Rs.
(1) c) BLG-3 Cu.Mt 3000/- Cu.Mt. Rs.
d) BLG-4(I) Cu.Mt 6000/- Cu.Mt.
e) BLG-4(ii) Cu.Mt Rs.10000/- Cu.Mt. Rs.
f) BLG-5 Cu.Mt. 2000/- Cu.Mt.
a) PNG-1 Cu.Mt Rs. 500/- Cu.Mt
b) PNG-2 Cu.Mt Rs. 1500/- Cu.Mt. Rs.
(2) c) PNG-3 Cu.Mt 2000/- Cu.Mt. Rs.
d) PNG-4 (I) Cu.Mt 5000/- Cu.Mt.
e) PNG-4 (ii) Cu.Mt Rs.10000/- Cu.Mt. Rs.
f) PNG-5 Cu.Mt 2000/- Cu.Mt
a) PGM-1 Cu.Mt Rs. 500/- Cu.Mt.
(3) b) PGM-2(I) Cu.Mt Rs. 1500/- Cu.Mt. Rs.
c) PGM(ii) Cu.Mt 2500/- Cu.Mt.
a) GRG-1 Cu.Mt Rs. 300/- Cu.Mt.
 (4) b) GRG-2 Cu.Mt Rs. 2500/- Cu.Mt. Rs.
c) GRG-3 Cu.Mt 5000/- Cu.Mt
d) WYG Cu.Mt Rs. 1500/- Cu.Mt.

SCHEDULE 4
SCHEDULE 4
(see sub-rule (5) of Rule 51)
AUCTION SALE CONFIRMING AUTHORITIES

Max.value Confirming
Name of authorised Officer of auction authority
lot (Rs.)
(1) Geologist having jurisdiction over the district. Upto Senior
50,000 Geologist
(2) Senior Geologist having jurisdiction over the
districts (In the case where Senior Geologist is in Upto Joint
charge of Dist he will conduct sale for less than Rs. 1,00,000 Director
50,000 also)
(3) Joint Director Upto Additional
4,00,000 Director
(4) Deputy Director(MA) or any Deputy Director in Upto -do-
H.O. duly authorised by the Director. 6,00,000
(5) Additional Director Upto Director
10,00,000
(6) Director Above Government
10,00,000
SCHEDULE 5
SCHEDULE 5
(See Rule 52)
PENALTY FOR NON-REMOVAL OF MINOR MINERAL AND/OR NON-PAYMENT OF
FINAL BID AMOUNT THEREBY CAUSING INCONVENIENCE.

Sl.No. Category of Penalty Amount

Minor Mineral
1. Non-specified Forfeiture of the earnest money paid as per Rule 51
minor mineral
Specified minor Forfeiture of the earnest money paid as per Rule 51
2. minerals other and black-listing the bidder so that the bidder in
than granites. his company/Firm cannot take part in future
auctioning.
Granites (all
3. types Forfeiture of the earnest money paid as per Rule
mentioned in 51, and black listing.
Form-O)