Section 21 of MMDR : Section 21: Penalties

Explanation using Example

Imagine a company, XYZ Mining Corp., that begins extracting iron ore from a piece of land without the necessary mining lease as required by Section 4 of the Mines and Minerals (Development and Regulation) Act, 1957. The area of unauthorized mining is 2 hectares. Upon discovery of this illegal activity, the company is charged under Section 21(1) of the Act. XYZ Mining Corp. is then convicted and the court sentences the responsible individuals to a term of imprisonment and imposes a fine of ₹10 lakh (₹5 lakh per hectare for the 2 hectares involved).