On what grounds can a mining lease be terminated?
A mining lease lapses, if after execution of the mining lease, mining operation does not commence in two years time. If for genuine reasons more time is required to commence mining operation, the entrepreneur should inform the State Government well in advance and take permission. After commencement of mining operation, if the area is kept idle/not worked for a continuous period of two years, the mining lease also lapses. In such cases also the entrepreneur should inform the Government of Tamil Nadu and take permission in order to avoid lapsing of the mining lease. If the mining leaseholder violates any of the terms and conditions of the mining lease, including default in payment of mining dues, the mining lease can be terminated. For all minerals other than minor minerals, the Central Government reserves the right to direct premature termination of a mining lease for grounds specified in section 4A(1) of the MMDR Act, 1957, which include preservation of natural environment, prevention
