(1) On receipt of a claim application, the State Government shall verify the following, namely:—
(a) claimant was the holder of reconnaissance permit or prospecting licence who had acquired a right for obtaining a prospecting licence followed by a mining lease or a mining lease, as the case may be, under clause (b) of sub-section (2) of section 10A of the Act and whose said right has lapsed on the date of lapse; or is the legal representative, lawful assignee, lawful transferee or successor by the order of a competent court, as the case may be, of such holder of reconnaissance permit or prospecting licence; and
(b) claimant, to the satisfaction of the State Government, has— i) undertaken reconnaissance operations or prospecting operations, as the case may be, to establish the existence of mineral contents in such land in accordance with the parameters as laid down by the Central Government in this behalf;
ii) not committed any breach of the terms and conditions of the reconnaissance permit or the prospecting licence;
iii) not become ineligible under the provisions of the Act and rules made thereunder; and iv) not failed to apply for grant of prospecting licence or mining lease, as the case may be, within a period of three months after the expiry of reconnaissance permit or prospecting licence, as the case may be, or within such further period not exceeding six months as may be extended by the State Government:
Provided that in case where the period of permit or licence had not expired before the date of lapse and the claimant has submitted the claim after the expiry of permit or licence under clause (a) of the proviso to sub-rule (1) of rule 4, the condition specified in clause (iv) shall not be applicable:
16 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
Provided further that in case where the period of permit or licence had not expired before the date of lapse and the claimant has submitted claim of the expenses incurred by it till the date of lapse under clause (b) of the proviso to sub-rule (1) of rule 4, the State Government shall verify that the conditions specified in clauses (i) to (iii) were complied with by the claimant, as far as practical, till the date of lapse and the condition specified in clause (iv) shall not be applicable.
(2) After due verification in accordance with sub-rule (1), and on being satisfied that claimant had the right to obtain prospecting licence followed by mining lease or mining lease, as the case may be, before the date of lapse, the State Government may forward the claim to the Reimbursement Assessment Committee along with its annexures and other relevant documents.