(1) Where a mining lease is granted or renewed, the lease deed shall be executed and registered in Form ML-1 within a period of ninety days of the date of order of grant or renewal of the mining lease and duly registered with the Registrar;
(2) If the lease deed is not executed within the aforesaid period, the order sanctioning the mining lease shall be deemed to have been revoked and the ‘advance dead rent’ and ‘security amount’ deposited at the time of auction shall stand forfeited:
Provided that where the Director is satisfied that the LoI holder/ lessee is not responsible for the delay in the execution of the lease deed, the Director may, for reasons to be recorded in writing, permit the execution of the lease deed beyond a period of ninety days but not exceeding one hundred twenty days of the expiry of the aforesaid period.
(3) The LoI holder/ lessee shall also furnish a solvent surety for a sum equal to the annual bid amount for execution of the agreement. In case the surety offered by the lessee during the subsistence of the mining lease is not found solvent, the lessee shall offer another solvent surety and a supplementary deed to this effect shall be executed.
Chapter - 4 Grant of Mining Contracts