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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-31072026-274998
EXTRAORDINARY
PART II—Section 3—Sub-section (i)
PUBLISHED BY AUTHORITY
No. 624]
NEW DELHI, THURSDAY, JULY 30, 2026/SHRAVAN 8, 1948
MINISTRY OF MINES
NOTIFICATION
New Delhi, the 30th July, 2026
G.S.R. 686(E). — In exercise of the powers conferred by clause (m) of sub-section (2) of section 35 read with
sub-section (3) of section 28 and sub-section (2) of section 34 of the Offshore Areas Mineral (Development and
Regulation) Act, 2002 (17 of 2003), the Central Government hereby makes the following rules, namely:—
1. Short title and commencement. — (1) These rules may be called the Offshore Areas Mineral Adjudication of
Penalties Rules, 2026.
(2) These rules shall come into force on the 1st day of August, 2026.
2. Definitions. — (1) In these rules, unless the context otherwise requires, —
(a) "Act" means the Offshore Areas Mineral (Development and Regulation) Act, 2002 (17 of 2003);
(b) "adjudicating officer" means an officer appointed under sub-section (3) of section 28 of the Act;
(c) "appellant" means a person aggrieved with an order of adjudicating officer and prefers an appeal before
the appellate authority under sub-section (1) of section 34 of the Act;
(d) "appellate authority" means an officer appointed under sub-section (1) of section 34 of the Act;
(e) "form" means a form appended to these rules;
(f) "inquiry" means the inquiry referred in sub-section (3) of section 28 of the Act; and
(g) "Schedule" means the schedule annexed to these rules.
(2) The words and expressions used in these rules and not defined, but defined in the Act, shall have the same
meanings respectively assigned to them in the Act.
3. Complaint. — A gazetted officer authorised by the Central Government may file a complaint in Form 1, through
electronic form or speed post with registration and proof of delivery or by hand, to the adjudicating officer regarding
any contravention or failure under sub-section (1) of section 28 of the Act within a period of three years from date of
such contravention or failure.
Explanation. - For the purposes of this rule, clause (b) of sub-rule (11) of rule 4 and rule 11 "electronic form" shall
have the same meaning as assigned to it in clause (r) of sub-rule (1) of section 2 of the Information Technology Act,
2000 (21 of 2000).
4. Holding of inquiry. — (1) On receipt of any complaint under rule 3, the adjudicating officer shall, issue a notice in
Form 2 to the person alleged to have been committed the contravention or failure, requiring him to show cause, within
such period as may be specified in the notice (being not less than fifteen days from the date of service thereof), as to
why an inquiry should not be held against him.
(2) Every notice under sub-rule (1) shall indicate the nature of contravention or failure alleged to have been committed
by him.
(3) On receipt of the reply submitted by such person, if the adjudicating officer is of the opinion that an inquiry should
be held, he shall issue a notice in Form 3 requiring the appearance of the person proceeded against and such other
persons as may be necessary personally or through a representative duly authorised by him on such date as may be
fixed in the notice:
Provided that the appearance shall be allowed through video conference.
(4) On the date fixed for hearing, the adjudicating officer shall explain to the person proceeded against or his
authorised representative, the contravention or failure alleged to have committed by him and the provision of the Act.
(5) The adjudicating officer shall give an opportunity to such person and other necessary persons to produce
documents or evidence as he may consider relevant to the inquiry and if necessary, the hearing may be adjourned to a
future date (not later than fifteen days from the first date and up to a maximum of three dates) and while taking such
evidence the adjudicating officer shall not be bound to observe the provisions of the Bhartiya Sakshya Adhiniyam,
2023 (47 of 2023).
(6) On the date fixed for hearing and after giving a reasonable opportunity of being heard to the person concerned, if
any person fails, neglects or refuses to appear before the adjudicating officer, he may proceed with the inquiry in the
absence of such person after recording the reasons for doing so.
(7) If the adjudicating officer, upon consideration of the evidence produced before him, is satisfied that the person has
committed the contravention or the failure, he shall, having regard to the factors specified in rule 6, by order in
writing, impose civil penalty as specified in the Schedule.
(8) Every order made under sub-rule (7) shall specify the provisions of the Act, rules made thereunder or the terms
and conditions of operating rights, in respect of which contravention or failure has been committed and shall specify
the reasons for imposing the penalty.
(9) A copy of the order made under this rule and all other copies of proceedings shall be supplied free of cost to the
complainant and the person against whom the inquiry was held.
(10) The adjudicating officer shall complete the proceeding within six months from the issuance of the notice to the
person against whom the inquiry was held.
(11) A notice or an order issued under these rules shall be served on the person against whom an inquiry is held, in
any of the following manner, namely: —
(a) by delivering or tendering it to that person or his authorised representative; or
(b) by sending it to the person through electronic form or by speed post with registration and proof of
delivery to the address of his place of residence or his last known place of residence or the place where he
carried on or last carried on, business or personally works or last worked for gain; or
(c) if it cannot be served in the manner specified under clauses (a) or (b), by affixing it on the outer door or
some other conspicuous part of the premises in which that person resides or is known to have last resided or
carried on business or personally works or has worked for gain.
5. Factors to be considered while determining quantum of penalty. — The adjudicating officer, while adjudicating
the quantum of penalty, shall have due regard to all or any of the following factors, namely: —
(a) quantum of deviation or contravention from the standard provided under the rules or terms and conditions
of the operating right;
(b) undue gain or benefit derived out of contravention and its amount, wherever quantifiable;
(c) repetitive nature or frequency of the contravention;
(d) duration of contravention;
(e) past compliance record of the person proceeded against;
(f) whether the contravention is procedural, technical or substantive;
(g) whether the contravention was promptly rectified;
(h) whether the contravention could lead to any environmental damage, safety risk, public loss or financial
loss to the Government;
(i) condonation of delay due to downtime or technical failure of Government portals; or
(j) any other relevant factor.
6. Summary disposal. — (1) Notwithstanding anything contained in rule 4, no inquiry shall be initiated or continued
against a person in respect of a contravention or failure under section 28 of the Act, if such person makes payment of
the minimum amount specified in the Schedule and rectify the contravention of the rules or terms and conditions of
the operating right, either before initiation or during any stage of inquiry under rule 4:
Provided that the provisions of this rule shall not be applicable if a person commits contravention of the same
rule or terms and conditions of the operating right for more than three times within a period of five years.
Explanation. — For the purpose of this sub-rule, “minimum amount specified in the Schedule" shall mean, —
(a) in case of contravention of rules or terms and conditions of operating right which specify time period of
submission of report or information, aggregate of the amount specified in the Schedule for each week till
continuation of such contravention;
(b) in case of other contravention, the minimum amount specified in the range of amount specified in the
Schedule.
(2) For the purpose of sub-rule (1), the person who has made a contravention shall file an application to the
adjudicating officer in the form of an affidavit specifying the —
(a) details of contravention for which the application is being filed along with notice received regarding the
contravention, if any;
(b) details of subsequent rectification of the contravention along with a copy of document in support of the
same; and
(c) undertaking to deposit the amount under sub-rule (1).
(3) The adjudicating authority shall within fifteen days of the receipt of the application under sub-rule (2), intimate the
applicant to deposit the amount under sub-rule (1).
(4) The applicant shall deposit the amount within fifteen days of the intimation under sub-rule (3) and on verification
of deposit of amount, the adjudicating officer shall issue a closure order within seven days and no inquiry shall be
initiated or continued against a person in respect of said contravention.
7. Transfer of complaint. — (1) If the adjudicating officer is of the view or it is made to appear that he does not have
authority to entertain the complaint, he shall transfer it to the adjudicating officer concerned within fifteen days of the
receipt of such complaint made to him, after reasons to be recorded in writing, under intimation to the complainant.
(2) The adjudicating officer to whom such case is transferred shall proceed with the inquiry from the stage it is
transferred to him.
8. Appeal. - (1) Any person aggrieved by an order passed by the adjudicating officer, may file an appeal to the
appellate authority in Form 4 within 30 days from the date of receipt of the order against which the appeal is filed.
(2) No appeal shall be entertained unless the appellant has deposited with the appellate authority ten per cent. of the
amount of penalty imposed by the adjudicating officer.
(3) The appeal shall be accompanied by a copy of order of adjudicating officer and a statement of facts appealed
against, the grounds for appeal and the relevant section of the Act.
(4) The appeal may be filed by the appellant in person or by his representative duly authorised in writing, or speed
post with registration and proof of delivery or through electronic means.
(5) The appeal sent shall be deemed to have been filed to the appellate authority on the day it is received.
(6) If on scrutiny, the appeal is found to be in order, it shall be admitted and in case the appeal is found to be defective,
the appellate authority shall intimate the appellant about the defects and allow him to rectify the defects within fifteen
days and if the appellant fails to rectify such defects within the time period, the appellate authority may by order and
for reasons to be recorded in writing, decline to register such appeal and communicate such refusal to the appellant
within a period of seven days thereof.
(7) On admission of the appeal, the appellate authority shall serve a copy of appeal to respondent along with a notice
requiring him to file his reply thereto, within such period, not exceeding thirty days, as may be stipulated by the
appellate authority in the said notice.
(8) The notice may be served by hand or by speed post with registration and proof of delivery or through electronic
means.
(9) The appellate authority may call for the records relating to the proceedings from the adjudicating officer.
(10) The appellate authority shall, after giving the parties to the appeal an opportunity of being heard, pass a reasoned
order.
(11) The appellate authority shall dispose of the appeal within sixty days from the date of appeal.
(12) In case of reduction or setting aside of the penalty, any excess amount deposited under sub-rule (2) shall be
refunded within sixty days of the order of appellate authority.
9. Extension of time. —The adjudicating officer or the appellate authority may, for reasons to be recorded in writing,
where there is a reasonable cause for the delay or failure to act or evidence of downtime or technical failure of
Government portals, extend any period specified in these rules for filing of complaint, appeal or other related
documents till such period as he considers reasonable, subject to maximum ninety days.
10. Order and deposit of penalties. — (1) Every order under these rules, shall be dated, signed and communicated to
all the parties.
(2) All sums realised by way of penalties under these rules shall be credited to the Consolidated Fund of India.
11. Online electronic facility. — The Central Government shall carry out the purposes of, and enforce compliance
with, these rules through electronic form, including the following, namely: —
(a) issuance of notice and other communications;
(b) submission or filing of complaint, application, reply, appeal and such other document;
(c) conduct of virtual hearing by adjudicating officer and appellate authority;
(d) display of status of the cases before the adjudicating officer and appellate authority;
(e) uploading of orders of adjudicating officer and appellate authority; and
(f) payment of penalty and other amounts.
Schedule
(See rule 4 (7))
Amount of civil penalty
Part-A. Amount of civil penalty in respect of production lease
+-------+-------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| S. | Area of | Nature of contravention | Amount of civil penalty |
| No. | production lease | | |
+=======+=========================+===================================================================================================================================================================+=======================================================================================================================================================================================+
| (1) | (2) | (3) | (4) |
+-------+-------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 1. | Upto 25 standard blocks.| (i) For contraventions of Act, rules or terms and conditions of the operating right which specify time period of submission of report, data, information or document. | (i) ten lakh rupees for each week of contravention, subject to maximum of thirty lakh rupees. |
| | | (ii) For other contraventions. | (ii) not less than ten lakh rupees which may extend to fifty lakh rupees. |
+-------+-------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 2. | more than 25 | (i) For contraventions of rules or terms and conditions of the operating right which specify time period of submission of report, data, information or document | (i) ten lakh rupees for each week of contravention, subject to maximum of fifty lakh rupees. |
| | standard blocks. | (ii) For other contraventions | (ii) not less than twenty lakh rupees which may extend to one crore rupees. |
+-------+-------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
Part-B. Amount of civil penalty in respect of operating right other than production lease
+-------+-------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| S. No.| Area of | Nature of contravention | Amount of civil penalty |
| | operating right | | |
+=======+=========================+===================================================================================================================================================================+=======================================================================================================================================================================================+
| (1) | (2) | (3) | (4) |
+-------+-------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 1. | Upto 25 standard blocks.| (i) For contraventions of rules or terms and conditions of the operating right which specify time period of submission of report, data, information or document. | (i) ten lakh rupees for each week of contravention, subject to maximum of thirty lakh rupees. |
| | | (ii) For other contraventions. | (ii) not less than ten lakh rupees which may extend to fifty lakh rupees. |
+-------+-------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 2. | more than 25 | (i) For contraventions of rules or terms and conditions of the operating right which specify time period of submission of report, data, information or document. | (i) ten lakh rupees for each week of contravention, subject to maximum of fifty lakh rupees. |
| | standard blocks. | (ii) For other contraventions. | (ii) not less than twenty lakh rupees which may extend to one crore rupees. |
+-------+-------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
Part-C. Amount of civil penalty in respect contravention of rules by the persons not holding an operating right
+--------+-----------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Sl. No.| Nature of contravention | Amount of civil penalty |
+========+===================================================================================+=======================================================================================================================================================================================+
| (1) | (2) | (3) |
+--------+-----------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 1. | (i) For contraventions of rules which specify time period of submission of report | (i) ten lakh rupees for each week of contravention, subject to maximum of fifty lakh rupees. |
| | or information | |
| | (ii) For other contraventions | (ii) not less than twenty lakh rupees which may extend to one crore rupees. |
+--------+-----------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
Form 1
(See rule 3)
To,
The Adjudicating Officer
..................................................
..................................................
1. Particular of complainant: -
(a) Name:
(b) Address for service:
(c) Contact No.
(d) Email (for service):
2. Particulars of complaint: -
(a) Date, time and instance of commission of alleged contravention:
(b) Statement of contravention setting out all relevant material particulars:
(c) Evidence in support of the statement:
(d) Tentative amount of damage (in pecuniary terms) with cost break-up.
I/We..., ...... the complainant ...............herein declare that the facts stated herein are correct to the best of my/our
knowledge.
3. Name and signature of the complainant:
Note- Strike out whichever is not applicable.
Form 2
[See rule 4 (1)]
To
..................................................
..................................................
..................................................
Show cause notice
Subject: - Contravention of the Offshore Areas Mineral (Development and Regulation) Act, 2002.
Sir/Madam,
As per intimation ...... dated (copy enclosed), a contravention has been committed under
.........section of the Offshore Areas Mineral (Development and Regulation) Act, 2002 at
.............
2. The above contravention is liable for penalty. Therefore, you are required to show cause within a period of
......... days of service of this notice, why an inquiry should not be initiated against you under section 28 of the
Offshore Areas Mineral (Development and Regulation) Act, 2002 for imposition of penalty. In case, no reply is
received within the given period, further action shall be taken under the said Act.
Date and place ................
Adjudicating officer
Form 3
[See rule 4 (3)]
To
..................................................
..................................................
..................................................
Notice for appearance
Subject:- Contravention under section 28 of the Offshore Areas Mineral (Development and Regulation) Act,
2002.
Sir/Madam,
Show cause notice number .... dated .... may be referred to.
2. After preliminary examination, I am of the opinion that enquiry should be held against you for the contravention
specified in the said show cause notice. Therefore, you are required to appear before the undersigned personally or
through representative on dated......, for inquiry initiated against you under section 28 of the Offshore Areas Mineral
(Development and Regulation) Act, 2002.
3. In case of failure to appear on the given date, inquiry will be conducted in your absence.
Date and place ................
Adjudicating officer
Form 4
Appeal
[See rule 8 (1)]
To
Appellate Authority,
..................................................
..................................................
1. Particulars of appellant:
(i) Name:
(ii) Address for correspondence:
(iii) Contact Number:
(iv) Email:
2. Grounds of appeal:
(A copy of order of adjudicating officer to be enclosed)
3. Date of order of the adjudicating officer:
4. Statement of facts:
I/We........., the appellant hereby declare that the facts stated herein above are correct to the best of my/our
knowledge, information and belief.
5. Signature of appellant and date:
6. Name of appellant:
[F. No. M.VI-16/51/2026-Mines VI (Part-4)]
KULVEER SINGH YADAV, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
SARVESH KUMAR Digitaly signed by SARVESH KU
SRIVASTAVA Dus 2006-07-31 01:30:32+0530
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