act 017 of 2003 : Offshore Areas Mineral (Development and Regulation) Act, 2002

(1) This Act may be called the Offshore Areas Mineral (Development and Regulation) Act, 2002.

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(2) It shall come into force on such date¹ as the Central Government may, by notification in the Official Gazette, appoint.

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1.15th January, 2010, vide notification no. S.O. 338(E), dated by 11th February, 2010, see Gazette of India, Extraordinary, Part II, sec. 3(ii).

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(1) This Act shall apply to all minerals in the offshore areas including any mineral prescribed by notification under clause (g) of sub-section (1) of section 2 of the Atomic Energy Act, 1962 (33 of 1962) except mineral oils and hydrocarbons related thereto.

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(2) Except as otherwise provided in this Act, the provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being in force in the offshore areas.

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In this Act, unless the context otherwise requires,--

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(a) "administering authority" means an authority notified, in the Official Gazette, by the Central Government for the purposes of this Act;

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(b) "atomic minerals" means the minerals included in atomic minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) ¹[and the rules made thereunder;]

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(c) "Coast Guard" means the Coast Guard constituted under the Coast Guard Act, 1978 (30 of 1978);

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¹[(ca) "composite licence" means the exploration licence-cum-production lease, which is a two stage operating right granted for the purpose of undertaking exploration operation followed by production operation;

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(cb) "dispatch" means removal of minerals or mineral products from the area covered under the production lease and includes the consumption of minerals and mineral products within such area;]

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(d) "exploration licence" means a licence granted ²[for the purpose of undertaking exploration operation];

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(e) "exploration operation" means any operation undertaken for the purpose of exploring, locating or proving the mineral deposits;

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¹[(ea) "Government company" shall have the meaning assigned to it in clause (45) of section 2 of the Companies Act, 2013, (18 of 2013);]

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(f) "holder", in relation to any operating right, means the lessee, licensee or permittee, as the case may be, in respect of such operating right;

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(g) "hydrocarbon" means very large group of chemical compounds composed of carbon and hydrogen;

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(h) "Indian national" means a citizen of India and includes a firm or other association, if all the members of the firm or, as the case may be, the members of the association, are citizens of India;

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(i) "lessee" means the person in whose name ³[a production lease] is granted;

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(j) "licensee" means the person in whose name ⁴[a composite licence, or an exploration licence, is grantedic;9563

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(k) "mine" means any place in the offshore area wherein any exploration or production operation is carried on, together with any vessel, erection, appliance, artificial island or platform and premises in the offshore area used for the purposes of exploration, winning, treating or preparing minerals, obtaining or extracting any mineral or metal by any mode or method, and includes any area covered by ⁵[a composite licence, or an exploration licence, or a production lease] where exploration or production operation has been, or is being, or may be, carried on under the provisions of this Act;

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(l) "mineral" includes all minerals except mineral oil and hydrocarbon resources relating thereto;

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(m) "mineral oil" includes natural gas and petroleum;

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(n) "offshore area" means the territorial waters, continental shelf, exclusive economic zone and other maritime zones of India under the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 of 1976);

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(o) "operating right" means the right of holder of a reconnaissance permit, or ⁶[a composite licence, or an exploration licence, or a production lease;]

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(p) "permittee" means the person in whose name the reconnaissance permit is granted;

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(q) "pollution of offshore environment" means the introduction by any person, directly or indirectly, of substances or energy into the offshore environment which results, or is likely to result, in deleterious effect on living resources and marine life, hazards to human health, hindrance to marine activities, including fishing and other legitimate uses of the offshore areas and impairment of quality of sea water for use and reduction of amenities;

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(r) "prescribed" means prescribed by rules made under this Act;

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⁷[(ra) "production", with its grammatical variation and cognate expressions, means the winning of mineral within the area covered under a production lease for the purpose of processing or dispatch;]

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(s) "production operation" means any operation undertaken for the purpose of winning any mineral from the offshore area and includes any operation directly or indirectly necessary there for or incidental thereto;

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(t) "production lease" means a lease granted ⁸[under section 8 or section 12 or section 13] which confers an exclusive right for the purpose of undertaking production operation;

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(u) "reconnaissance operation" means any preliminary geo-scientific survey undertaken for the purpose of searching or locating mineral deposits;

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(v) "reconnaissance permit" means a permit granted ⁹*** for the purpose of undertaking reconnaissance operation;

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⁷[(va) "standard block" means a block of the offshore area of one minute latitude by one minute longitude and includes the seabed and its subsoil and waters superjacent to the seabed within such block;]

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(w) "vessel" includes any ship, ¹⁰[barge, boat, container, sailing vessel or stationary vessel or any other vessel of any description, submersible or otherwise and remotely operated or otherwise, used in any operation or any activity pursuant thereto].

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1. Ins. by Act 17 of 2023, s. 2 (w.e.f. 17-8-2023).

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2. Subs. by s. 2, ibid., for "under section 12" (w.e.f. 17-8-2023).

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3. Subs. by Act 17 of 2023, s. 2, for "the production lease" (w.e.f. 17-8-2023).

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4. Subs. by s. 2, ibid., for "the exploration licence is granted" (w.e.f. 17-8-2023).

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5. Subs. by s. 2, ibid., for "an exploration licence or production lease" (w.e.f. 17-8-2023).

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6. Subs. by s. 2, ibid., for "an exploration licence, or a production lease" (w.e.f. 17-8-2023).

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7. Ins. by s. 2, ibid. (w.e.f. 17-8-2023).

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8. Subs. by s. 2, ibid., for "under section 13" (w.e.f. 17-8-2023).

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9. The words and figures "under section 11" omitted by s. 2, ibid. (w.e.f. 17-8-2023).

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10. Subs. by s. 2, ibid., for "boat, sailing vessel or any other vessel of any description" (w.e.f. 17-8-2023).

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(1) No person shall undertake any reconnaissance operation, exploration operation or production operation in the offshore areas, except under and in accordance with the prescribed terms and conditions of a reconnaissance permit, ¹[a composite licence, or an exploration licence, or a production lease, granted]. under this Act and the rules made thereunder:

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Provided that nothing in this sub-section shall apply to any reconnaissance operation or exploration operation undertaken by the Geological Survey of India, ²[Atomic Minerals Directorate for Exploration and Research], the Chief Hydrographer to the Government of India of ³[the National Hydrographic Office[, the National Institute of Oceanography, the National Institute of Ocean Technology of Department of Ocean Development of the Government of India, or ⁴[any other agency including a private entity, duly authorised in this behalf by the Central Government by notification in the Official Gazette, subject to such conditions as may be specified therein.]

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⁵[(2) Every permittee, licensee and lessee referred to in sub-section (1), and the Government organisation, agency or private entity referred to in the proviso thereof, shall--

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(a) furnish to the administering authority and such other authority as may be prescribed, all exploration and operational data, reports, samples and other information in respect of or collected pursuant to an operation, in such manner and within such period, as may be prescribed; and

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(b) all exploration and operational data, reports, samples and other information in respect of or collected pursuant to an operation, shall be held by such permittee, licensee, lessee, Government organisation, agency or private entity, as the case may be, in strict confidence and any dissemination, pursuant to a sale or otherwise, of such data, reports or other information, or sharing of its samples, shall be subject to such terms and conditions, as may be prescribed.]

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(3) Notwithstanding anything contained in this Act, the Central Government may--

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(a) authorise seaward artillery practice under the Seaward Artillery Practice Act, 1949 (8 of 1949);

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(b) provide for, by notification in the Official Gazette, special measures to ensure public safety and interest, the defence of India and civil defence, conduct of the naval operations and exercises, national security and other strategic considerations and the matters connected therewith during war like conditions or otherwise.

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(4) No operating right shall be ⁶[granted, extended or acquired otherwise than in accordance with the provisions of this Act and the rules made thereunder and any reconnaissance permit, ⁷[composite licence, exploration licence or production lease, granted, extended or acquired] in contravention of the provisions of this Act or any rules made thereunder, shall be void.

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1. Subs. by Act 17 of 2023, s. 3, for "exploration licence or production lease granted" (w.e.f. 17-8-2023).

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2. Subs. by s. 3, ibid., for "Atomic Minerals Directorate of Exploration and Research" (w.e.f. 17-8-2023).

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3. Subs. by s. 3, ibid., for "Naval Hydrographic Office of the Indian Navy" (w.e.f. 17-8-2023).

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4. Subs. by s. 3, ibid., for "any other agency duly authorised in this behalf by the Central Government" (w.e.f. 17-8-2023).

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5. Subs. by s. 3, ibid., for sub-section (2) (w.e.f. 17-8-2023).

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6. Subs. by s. 3, ibid., for "granted or renewed" (w.e.f. 17-8-2023).

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7. Subs. by s. 3, ibid., for "exploration licence or production lease granted, renewed or acquired" (w.e.f. 17-8-2023).

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The Central Government shall not grant an operating right to any person unless such person--

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(a) is an Indian national, or a company as defined in ¹[clause (20) of section 2 of the Companies Act, 2013 (18 of 2013)]; and

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(b) satisfies such conditions as may be prescribed:

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²[Provided that no exploration licence, or composite licence, or production lease shall be granted for an area to any person other than the Government, a Government company or a corporation, in respect of any minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), subject to such conditions and manner as may be prescribed, where the grade of such mineral in such area is equal to or greater than such threshold value as the Central Government may, by notification in the Official Gazette, specify:

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Provided further that no production lease shall be granted in respect of any part of the offshore area, unless the existence of mineral resources in such offshore area has been adequately established in accordance with such parameters as may be prescribed.]

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1. Subs. by Act 17 of 2023, s. 4, for "section 3 of the Companies Act, 1956 (1 of 1956)" (w.e.f. 17-8-2023).

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2. Subs. by s. 4, ibid., for the proviso (w.e.f. 17-8-2023).

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(1) Where the Central Government, after consultation with the administering authority, is of the opinion ¹[that it is expedient in public interest, strategic interest of the country, in the interest of] development and regulation of offshore mineral resources, preservation of natural environment and prevention of pollution, avoidance of danger to public health or communication, ensuring safety of any offshore structure or conservation of mineral resources ²[or for any other reason], the Central Government may prematurely terminate any operating right in respect of any mineral in any offshore area or part thereof.

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(2) No order for premature termination of operating right under sub-section (1) shall be made except after giving the holder of operating right a reasonable ³[opportunity of being heard, except in cases where premature termination is being done on the grounds of strategic interest of the country].

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(3) Where the holder of any operating right fails to commence operation within the period specified in section 14 or discontinues the operation for a period of two years, the operating right shall lapse from the date of execution of the lease or, as the case may be, discontinuance of the operation:

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Provided that the administering authority, on an application made by the holder of operating right and after being satisfied that such non-commencement of operation or discontinuation thereof, is due to the reasons beyond the control of the holder of operating right, may ⁴[extend the period specified in section 14 by a further period not exceeding one year and such extension shall not be granted for more than once during the entire period of operating right:]

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⁵[Provided further that where the holder of operating right--

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(a) fails to undertake operation; or

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(b) having commenced the operation, discontinues such operation,

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before the end of the extended period, such operating right shall also lapse from the date of execution of the lease or, as the case may be, discontinuance of the operation.]

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⁵[(4) Where the holder of a production lease fails to undertake production and dispatch for a period of four years after the date of execution of the lease, or having commenced production and dispatch, discontinues the same for a period of two years, then such lease shall lapse on the expiry of the period of four years from the date of its execution or, as the case may be, two years from date of discontinuance of the production and dispatch:

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Provided that the administering authority may, on an application made by the lessee, and after being satisfied that such non-commencement of production, or dispatch, or discontinuation thereof, was due to the reasons beyond the control of the lessee, may extend such period by a further period not exceeding one year, but such extension shall not be granted for more than once during the entire period of lease:

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Provided further that where the lessee,--

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(a) fails to undertake production or dispatch; or

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(b) having commenced the production and dispatch, discontinues the same,

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before the end of the extended period, such lease shall lapse from the date of its execution or, as the case may be, discontinuance of production or dispatch.]

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1. Subs. by Act 17 of 2023, s. 5, for "that it is expedient in the interest of" (w.e.f. 17-8-2023).

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2. Ins. by s. 5, ibid. (w.e.f. 17-8-2023).

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3. Subs. by s. 5, ibid., for "opportunity of being heard" (w.e.f. 17-8-2023).

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4. Subs. by s. 5, ibid., for "condone such non-commencement or discontinuation." (w.e.f. 17-8-2023).

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5. Ins. by s. 5, ibid., (w.e.f. 17-8-2023).

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(1) The Central Government may, from time to time, by notification in the Official Gazette, reserve any offshore area not already held under any operating right, for the purposes of the Central Government and, where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area shall be reserved.

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(2) The Central Government may, from time to time, by notification in the Official Gazette, dereserve, any area reserved under sub-section (1), in the interest of development and regulation of the offshore mineral.

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¹](3) Where the Central Government reserves any offshore area under sub-section (1), the administering authority may, subject to such terms and conditions as may be prescribed, grant a composite licence, or a production lease, in such area or any part thereof to the Government, or a Government company, or a corporation.

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(4) A composite licence or a production lease granted to the Government, or a Government company, or a corporation under sub-section (3) shall be subject to the same terms and conditions applicable to a licensee or a lessee, as the case may be, except the procedure specified for grant of a composite licence under section 12 or a production lease under section 13.

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(5) Where a Government company, or corporation is desirous of carrying out the exploration operation or production operation in a joint venture with other persons, the joint venture partner shall be selected through a competitive process, and such Government company or corporation shall hold more than seventy-four per cent. of the paid up share capital in such joint venture.]

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1. Ins. by Act 17 of 2023, s. 6 (w.e.f. 17-8-2023).

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(1) The Central Government may, in the public interest, by order in writing and communicated to the permittee, licensee or lessee, as the case may be, close any area either in part or whole, covered under any operating right, for ¹[such period as may be specified in the order, for] the preservation of natural environment and prevention of pollution, or to avoid danger to public health, or communication, or to ensure safety of any offshore structure or platform, or for the conservation of ²[offshore mineral, or for regulation of offshore areas, or for national security] or for any other strategic consideration.

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(2) Any area, either in part or whole closed under sub-section (1) and included in any operating right, shall, from the date of such order, be deemed to be excluded for the purposes of the operating right ¹[for such period as may be specified in the order and the holder of the operating right shall not undertake any operation in the area covered under such order ³[during the period of closure specified therein].

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1. Ins. by Act 17 of 2023, s. 7, (w.e.f. 17-8-2023).

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2. Subs. by s. 7, ibid., for "offshore mineral, or for national security" (w.e.f. 17-8-2023).

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3. Subs. by s. 7, ibid., for "from the date specified therein" (w.e.f. 17-8-2023).

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¹[Within six months] from the date of commencement of this Act, and subsequently at such times as may be considered necessary in this behalf by the administering authority, it shall, by notification in the Official Gazette, declare the parts of the offshore areas which shall be available for grant of ²[reconnaissance permit, or exploration licence, or composite licence, or production lease].

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1. Subs. by Act 17 of 2023, s. 8, for "(1) Within six months" (w.e.f. 17-8-2023).

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2. Subs. by s. 8, ibid., for "reconnaissance permit, exploration licence or production lease" (w.e.f. 17-8-2023).

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3. Sub-section (2) and (3) omitted by s. 8, ibid. (w.e.f. 17-8-2023).

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(1) The administering authority may grant a non-exclusive reconnaissance permit to any person eligible under section 6 for grant of operating right.

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(2) The period for which a reconnaissance permit may be granted under sub-section (1) shall be for a period specified in such permit which shall not exceed two years.

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(3) A reconnaissance permit granted under sub-section (1) may be renewed for a period not exceeding two years if, after a review of the progress made during the period of such grant, the administering authority is satisfied that a further period is necessary to complete the reconnaissance operation.

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(4) The area that may be granted under one reconnaissance permit shall not exceed a block of two degree latitude by two degree longitude.

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(5) The administering authority may grant reconnaissance permits to more than one person in respect of the same area for the same mineral deposits in the interest of offshore mineral development.

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¹[12. Grant of composite licence.--(1) The administering authority may, in respect of an offshore area where the existence of mineral resources has not been adequately established for grant of a production lease as required by the second proviso to section 6, after inviting applications in this behalf, select any person for grant of a composite licence, who--

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(a) fulfils the eligibility conditions as specified in this Act and such conditions as may be prescribed; and

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(b) is selected through auction by method of competitive bidding, including e-auction, conducted on the basis of such terms and conditions, manner and bidding parameters, as may be prescribed.

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(2) The Central Government shall grant the composite licence to the person selected in accordance with the procedure laid down in sub-section (1).

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(3) The licensee shall complete the exploration operations satisfactorily, as specified in the notice inviting applications, within a period of three years from the date of grant of the composite licence: Provided that the administering authority may, on an application made by the licensee three months before the lapse of the said period, for reasons to be recorded in writing and subject to such conditions as may be prescribed, grant an extension for a period of two years to the licensee for satisfactory completion of the exploration operations:

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Provided further that no further extension shall be granted upon expiry of the extended period, if any, granted under the first proviso.

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(4) The area granted under a composite licence shall comprise of contiguous standard blocks, which in aggregate do not exceed an area of thirty minutes latitude by thirty minutes longitude.

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(5) Every licensee shall, on being granted a composite licence, commence and carry out exploration operation subject to such terms, milestones and relinquishment requirements, as may be prescribed.

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(6) A licensee, who has adequately established the existence of mineral resources in an offshore area held under the composite licence, or part thereof, as required by the second proviso to section 6, shall, within the period specified or extended under sub-section (3), subject to such terms and conditions, and on making an application to the administering authority in such form, as may be prescribed, be granted one or more production leases:

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Provided that such licensee--

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(a) is not in breach of the terms and conditions of his composite licence;

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(b) continues to be eligible for grant of a production lease in accordance with section 6; and

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(c) has applied for grant of production lease within six months of completion of his exploration operations:

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Provided further that the total area of such production lease or production leases, granted in pursuance of a single composite licence, shall not exceed fifteen minutes latitude by fifteen minutes longitude.

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(7) The administering authority shall, on receipt of an application under sub-section (6), and on being satisfied that the licensee meets the requirements under the provisions of this Act and the rules made thereunder, recommend to the Central Government for grant of production lease to such licensee.

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(8) The Central Government shall, on receipt of a recommendation under sub-section (7) from the administering authority, grant production lease to the licensee in accordance with such procedure as may be prescribed.

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(9) Every production lease granted in pursuance of a composite licence shall be for a period of fifty years.

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(10) All rights and interests held under a composite licence in the parts of an offshore area, in respect of which no production lease is granted, shall cease to exist upon expiry of the composite licence.

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(11) The provisions of this section shall not apply to--

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(a) the areas covered under section 8; and

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(b) the minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, (67 of 1957) where the grade of atomic mineral is equal to or greater than such threshold value, as the Central Government may, by notification in the Official Gazette, specify]

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1. Subs. by Act 17 of 2023, s. 10, for section 12 and 13 (w.e.f. 17-8-2023).

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¹[13. Grant of production lease.-- (1) The administering authority may, in respect of an offshore area where the existence of mineral resources has been adequately established for grant of production lease as required by the second proviso to section 6, after inviting applications in this behalf, select any person for grant of a production lease, who--

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(a) fulfils the eligibility conditions as specified in this Act and such conditions as may be prescribed; and

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(b) is selected through auction by method of competitive bidding, including e-auction, conducted on the basis of such terms and conditions, manner and bidding parameters, as may be prescribed.

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(2) The Central Government shall grant the production lease to the applicant selected in accordance with the procedure laid down under sub-section (1).

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(3) Every production lease under this section shall be granted for a period of fifty years.

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(4) The area under a production lease shall comprise of contiguous standard blocks and shall not exceed an area of fifteen minutes latitude by fifteen minutes longitude.

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(5) Upon grant of a production lease, the lessee shall commence and carry out production operation in such manner and subject to such terms and conditions, as may be prescribed.

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(6) The provisions of this section shall not apply to--

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(a) the areas covered under section 8; and

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(b) the minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), where the grade of atomic mineral is equal to or greater than such threshold value, as the Central Government may, by notification in the Official Gazette, specify.]

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1. Subs. by Act 17 of 2023, s. 10, for section 12 and 13 (w.e.f. 17-8-2023).

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A holder of operating right shall commence operation within the period specified below after the grant of the operating right and shall thereafter conduct such operation in proper, skilful and workman-like manner, as follows:--

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^table

(a) reconnaissance permit	six months;
1[(aa) composite licence	one year;]
(b) exploration licence	one year; and
(c) production lease	two years.

^/table

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1. Ins. by Act 17 of 2023, s. 12, (w.e.f. 17-8-2023).

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(1) A lessee shall pay royalty to the Central Government in respect of any mineral removed or ¹[consumed from the area covered under his production] lease, at the rate for the time being specified in the First Schedule in respect of that mineral.

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(2) The Central Government may, by notification in the Official Gazette, amend the First Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification:

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Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of three years.

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1. Subs. by Act 17 of 2023, s. 13, for "consumed by him from the area covered under the production" (w.e.f. 17-8-2023).

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(1) A lessee shall pay to the Central Government, every year, fixed rent in respect of the area covered under the production lease, at the rate for the time being specified in the Second Schedule:

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Provided that where the lessee becomes liable under section 16 to pay royalty for any mineral removed or ¹[consumed from the area] covered under such lease, he shall be liable to pay either such royalty or the fixed rent in respect of that area, whichever is greater.

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(2) The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which fixed rent shall be payable in respect of any area covered under a production lease and such enhancement or reduction shall take effect from such date as may be specified in the notification:

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Provided that the Central Government shall not enhance the rate of the fixed rent more than once during any period of three years.

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1. Subs. by Act 17 of 2023, s. 15, for "consumed by him from the area" (w.e.f. 17-8-2023).

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¹[Every lessee shall, in addition to other payments required under this Act, pay to the Central Government in advance, the amount to be paid to the International Seabed Authority in respect of the offshore area granted under his production lease falling in such part of the continental shelf extending beyond two hundred nautical miles, from the baseline from which the breadth of the territorial sea is measured, towards fulfilment of the obligation of the Government of India under Article 82 of the United Nations Convention on the Law of the Sea, 1982.]

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1. Subs. by Act 17 of 2023, s. 16, for section 18 (w.e.f. 17-8-2023).

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(1) The permittee, licensee, lessee or any other person undertaking the reconnaissance operation or exploration operation or production operation under sub-section (1) of section 5 or any agency undertaking the reconnaissance operation or exploration operation under the proviso to sub-section (1) of the said section shall be responsible to ensure that the concerned operation is conducted with due regard to the safety and health of persons including divers and safety and security of property engaged in the operation.

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(2) The Central Government may, by notification in the Official Gazette, declare safety zones in respect of offshore activities as may be necessary and prescribe the norms for regulating the safety and health of persons and safety of property engaged in operations authorised under this Act, the implementation thereof and matters connected therewith.

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(3) In the event of any contravention of provisions of sub-section (1) or the norms prescribed under sub-section (2) by the permittee, licensee, lessee or any other person undertaking the reconnaissance operation or exploration operation or production operation under sub-section (1) of section 5, or any other agency undertaking the reconnaissance operation or exploration operation under the proviso to sub-section (1) of the said section, shall also be deemed to be responsible for such contravention unless he or it proves that he or it, as the case may be, had taken all reasonable precautions within his or its means for enforcing those provisions, to prevent such contravention.

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(1) Every holder of the operating rights shall carry out the operations authorised under this Act subject to the provisions of this Act and the rules made thereunder and any other law and the rules made thereunder, for the time being in force for the prevention and control of pollution and protection of marine environment.

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(2) Every holder of an operating right shall be liable for any pollution of, or damage to, the marine environment resulting from his activities relating to his operating right in the offshore areas and shall pay such compensation, as may be determined by the administering authority keeping in view the extent of pollution or damage, as the case may be.

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(3) The Central Government may prescribe measures to be taken for prevention and control of pollution and protection of marine environment due to activities in the offshore areas.

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The permittee, licensee or lessee shall comply with such directions as the Central Government or the administering authority may issue, from time to time, for the conservation and systematic development of offshore minerals, prevention of pollution, protection of marine environment, prevention of coastal erosion or prevention of danger to life or property including the marine life.

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(2) The permittee, licensee or lessee shall comply with such directions as may be issued from time to time by the competent authority or Coast Guard regarding national security, safety and national integrity.

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Explanation.--"competent authority" means the competent authority appointed for the purposes of sub-section (2) by the Central Government in the Ministry dealing with defence of India.

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For the purpose of ascertaining the position of the working, actual or prospective, of any mine or abandoned mine, or for any other purpose connected with this Act or the rules made thereunder, any officer authorised, by the Central Government in this behalf, by general or special order, may--

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(a) enter and inspect, at all reasonable times, any mine;

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(b) weigh, draw samples or take measurements of the stocks of minerals recovered from any mine;

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(c) survey and take samples and measurements in any such mine;

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(d) examine any document, book, register or record in the possession or power of any person having the control of, or connected with, any mine and place marks of identification thereon and take extracts from, or make copies of, such document, book, register or record;

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(e) order the production of any such document, book, register and record, by the person referred to in clause (d); and

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(f) examine any person having the control of, or connected with, any mine.

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(2) Any authorised officer may, for the purpose of ascertaining whether or not the requirements of this Act or any rule made thereunder have been complied with, either with, or where it is not possible to obtain warrant conveniently, then, without, a warrant,--

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(a) search any mine;

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(b) stop or board and search any vessel which is engaged or which is likely to be engaged in any activity regulated under this Act; and

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(c) require the person for the time being having command or charge of mine or such vessel to produce any licence, permit, log book or other document relating, to the vessel or mine and examine or take copies of such licence, permit, log book or other document, as the case may be, for ascertaining the requirements of sub-section (1).

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(3) Where the authorised officer has reason to believe that any vessel or mine has been, or is being, or is about to be, used or employed, as the case may be, in violation of any provision of this Act or rule made thereunder, he may, with, or where it is not possible to obtain warrant conveniently, then, without, a warrant,--

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(a) seize and detain such vessel or mine, including any gear, equipment, stores or cargo found on board such vessel or belonging to the vessel and seize any mineral found on board the vessel;

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(b) seize any evidence relating to violation of any provision of this Act or rule made thereunder;

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(c) require the person for the time being having command or charge of the vessel, platform or erection of the mine so seized or detained to bring such vessel, platform or erection to any specified port;

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(d) arrest any person whom such officer has reason to believe, has committed such violation:

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Provided that the authorised officer, after arresting such person and before producing him before the competent court, shall inform the administering authority regarding the arrest and grounds of arrest communicated to the person so arrested.

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(4) In taking any action under sub-section (3), the authorised officer may use such force as may be reasonably necessary.

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(5) Where any vessel or other things are seized or detained, under sub-section (3),--

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(a) the vessel or other things so seized or detained shall, as soon as possible, be produced before the court competent to try an offence under this Act and the court shall make such order as it may deem fit for the retention or custody of such vessel or things with the Central Government or any other authority pending the completion of any proceedings for the prosecution of any offence relating to such vessel or things, as the case may be, under this Act or rules made thereunder:

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Provided that the court may, on an application made by the owner or the person for the time being having command or charge of the vessel or mine, order the release of the vessel or other things so seized or detained, to the owner or the person for the tie being having command or charge of the vessel or mine, furnishing security in the form of cash or a bank guarantee for an amount which is not less than fifty per cent. of the value of the vessel or things so seized or detained;

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(b) the administering authority shall be informed by the authorised officer of such seizure and the details thereof.

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(6) Where, in pursuance of the commission of any offence under this Act, any vessel is pursued beyond the limits of the offshore area, the powers conferred on an authorised officer by this section may be exercised beyond such limits in the circumstances and to the extent recognised by international law and State practice.

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(7) Every person to whom an order or warrant is issued or given by virtue of the powers conferred by this section shall be legally bound to comply with such order or warrant.

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Explanation.--For the purposes of this section,--

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(i) "authorised officer" means an officer of the Central Government notified as such in the Official Gazette, by the Central Government;

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(ii) "warrant" means a warrant issued by the Judicial Magistrate or the Metropolitan Magistrate, as the case may be, within whose jurisdiction the place, where the warrant is to be executed, is situated.

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(1) ¹[(a) whoever undertakes any reconnaissance operation, or exploration operation, or production operation in an offshore area without a reconnaissance permit, or a composite licence, or an exploration licence, or a production lease, as the case may be, shall be punishable with imprisonment for a term which may extend to five years, or with fine of five lakh rupees, which may extend to ten lakh rupees, or with both;

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(b) any permittee or licensee or lessee, who fails to furnish the required data, or information, or document under sub-section (2) of section 5 in the manner provided therein, shall be punishable with imprisonment which may extend to three years, or with fine of five lakh rupees, which may extend to ten lakh rupees, or with both.

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Explanation.--For the purposes of clauses (a) and (b), the amount of fine provided shall be in respect of each standard block of such part of the offshore area where such reconnaissance operation, or exploration operation, or production operation is undertaken.]

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(c) Any vessel, together with its gear, boats, stores and cargo, used or employed in violation of section 5, along with any mineral recovered or processed in violation of that section, if any, shall be confiscated.

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(d) Whoever ships, transports, offers for sale, sells, purchases, imports, exports, or has custody, control or possession of, any mineral recovered, processed or retained in violation of this Act or any rule made thereunder shall be ²[punishable] with imprisonment which may extend to three years, or with fine which may extend to three years, or ³[with fine of twenty-five lakh rupees, which may extend to fifty lakh rupees], or with both.

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(2) Whoever--

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(a) intentionally obstructs any authorised officer referred to in section 22 in the exercise of any powers conferred under this Act; or

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(b) fails to afford reasonable facilities to the authorised officer referred to in section 22 or his assistant to board the vessel or enter the mine or to provide for adequate security to such officer or assistant at the time of entry into the vessel or mine or when they are on board such vessel or mine; or

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(c) fails to stop the vessel or mine or to produce the licence, permit, log book or any other document, as the case may be, on board such vessel, or mine, when required to do so by the authorised officer referred to in section 22; or

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(d) interferes with, delays, or prevents, by any means, the lawful apprehension of any person under this Act,

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shall be ⁴[punishable with imprisonment which may extend to five years, or with fine of two lakh rupees, which may extend to five lakh rupees], or with both.

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⁵[(2A) Whoever, having been convicted of an offence under sub-section (1) or sub-section (2), is again convicted of an offence under that sub-section, shall, in addition to the punishment provided therefor, be punishable with additional fine which may extend to one lakh rupees for each day during which he continues to commit that offence.]

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(3) Whoever contravenes any other provision of this Act ⁶***, other than those specified in subsections (1) and (2) shall be ⁷[punishable] with imprisonment for a term which may extend to five years, or ⁸[with fine of fifty lakh rupees, which may extend to one crore rupees], or with both, and in the case of continuing contravention, with an additional fine which may extend to five lakh rupees for every day during which such contravention continues.

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⁵[(4) Any rule made under any provision of this Act may provide that any contravention thereof shall be punishable with imprisonment for a term which may extend to five years or with fine of fifty lakh rupees, which may extend to one crore rupees, or with both, and in the case of a continuing contravention, with additional fine which may extend to five lakh rupees for every day during which such contravention continues after conviction for the first such contravention.]

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1. Subs. by Act 17 of 2023, s. 18, for clauses (a) and (b) (w.e.f. 17-8-2023).

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2. Subs. by s. 18, ibid., for "punished" (w.e.f. 17-8-2023).

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3. Subs. by s. 18, ibid., for "with fine which may extend to fifty lakh rupees" (w.e.f. 17-8-2023).

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4. Subs. by s. 18, ibid., for "punished with imprisonment for a term which may extend to five years, or with fine which may extend to fifty thousand rupees" (w.e.f. 17-8-2023).

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5. Ins. by s. 18, ibid. (w.e.f. 17-8-2023).

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6. The words "or the rules made thereunder" omitted by s. 18, ibid. (w.e.f. 17-8-2023).

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7. Subs. by s. 18, ibid., for "punished" (w.e.f. 17-8-2023).

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8. Subs. by s. 18, ibid., for "with fine which may extend to one crore rupees " (w.e.f. 17-8-2023).

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