Key Details
What: Draft Minerals (Manner of Holding Inquiry and Appeal) Rules, 2026 and Offshore Areas Mineral (Manner of Holding Inquiry and Appeal) Rules, 2026 released for public consultation.
Legal basis: Operationalises the Jan Vishwas (Amendment of Provisions) Act, 2026.
Major change: Minor procedural violations under the MMDR Act, 1957 and OAMDR Act, 2002 shift from criminal prosecution to civil penalties.
Enforcement model: Adjudicating Officers replace routine criminal proceedings for specified violations.
Time limits: Inquiries to be concluded within six months; appeals to be decided within 60 days.
Consultation period: Public comments invited until 11 July 2026.
Summary
Mining Compliance Moves Towards Civil Adjudication
The Ministry of Mines has released draft rules to implement the Jan Vishwas (Amendment of Provisions) Act, 2026, introducing a new civil adjudication framework for specified violations under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) and the Offshore Areas Mineral (Development and Regulation) Act, 2002 (OAMDR).
The proposal reflects a broader shift in regulatory philosophy across sectors, distinguishing between minor procedural non-compliance and serious offences such as illegal mining. Under the draft framework, technical lapses and reporting failures would generally attract structured monetary penalties rather than criminal prosecution.
Graded Penalties Replace Criminal Proceedings
The draft introduces a graded penalty framework linked to the size and nature of mining concessions.
Penalty amounts vary across small mining leases, large concessions and offshore mineral operations, with higher penalties applicable where the scale of operations and potential regulatory impact are greater.
The framework also provides adjudicating authorities with discretion to consider factors such as the duration of the violation, previous compliance history and the gravity of the breach when determining final penalties.
Faster Resolution Through Adjudication and Appeals
The proposed system replaces routine court proceedings with inquiries conducted by designated Adjudicating Officers. Entities facing action must receive notice of the allegations and an opportunity to be heard before a decision is issued.
To improve regulatory certainty, inquiries are required to be completed within six months, while appeals must be disposed of within 60 days.
The draft also introduces a summary disposal mechanism under which eligible entities may rectify specified violations and pay a prescribed penalty to conclude proceedings quickly. However, repeated reliance on this route is restricted to discourage habitual non-compliance.
Wider Alignment Across Mining Regulations
The proposed changes are accompanied by consequential amendments to related mining regulations, including the Mineral Conservation and Development Rules, 2017 and the Atomic Minerals Concession Rules, 2016.
The objective is to establish a more consistent compliance and enforcement framework across India’s onshore, offshore and strategic mineral sectors.
Policy Relevance
Advances the Jan Vishwas Decriminalisation Agenda: The draft extends the Jan Vishwas approach to the mining sector by treating minor procedural violations as civil compliance matters rather than criminal offences.
Improves Regulatory Certainty for Mining Operators: Defined penalty schedules, inquiry timelines and appeal mechanisms can reduce uncertainty for firms operating in capital-intensive mining projects.
Allows Enforcement Agencies to Focus on Serious Violations: By separating procedural lapses from illegal extraction and other serious offences, enforcement resources can be directed towards higher-risk regulatory breaches.
Reduces Litigation and Administrative Burden: The use of adjudicating officers and summary disposal provisions could reduce reliance on lengthy criminal proceedings and ease pressure on courts.
Supports Ease of Doing Business in the Resource Sector: The framework seeks to balance compliance enforcement with proportionality, an issue that has become increasingly important as India expands exploration and mineral production activities.
Follow the Full Report Here: Draft Rules Pursuant to the Jan Vishwas (Amendment of Provisions) Act, 2026