MMDR Act - Supreme Court Explains Exceptions To Sec 10A(1) Which Makes Mining Lease Applications Received Before 12.01.2015 Ineligible

The Supreme Court has elucidated the exceptions applicable to Section 10-A of the Mines and Minerals Act, 1957, which provides that all applications received for grant of mining lease prior to 12.01.2015, shall become ineligible. The court held that where a prospecting licence has been granted to the permit holder or the licensee has the right to obtain a prospecting licence followed by a mining lease, and the State Government is satisfied that the permit holder or the licensee has complied with the requirements specified in Section 10-A of the MMDR Act, the bar of Section 10-A shall not be applicable. Another exception, the court said, was when the Central Government had already communicated their previous approval or the State Government had issued a ‘Letter of Intent’ for grant of mining lease before coming into force of the 2015 Amendment Act. The second category is where a reconnaissance permit or a prospecting licence has been granted the permit holder or the licensee has the right to obtain a prospecting licence followed by a mining lease and the State Government is satisfied that the permit holder or the licensee has complied with the requirements specified in sub-clauses to of clause of sub-section to Section 10-A of the MMDR Act, 1957,” the court said.