Section 59(3) in The U.P. Minor Minerals (Concession) Rules, 1963
(3)If the lease-holder disobeys the provisions of Rule 35 then penalty at the rate of Rupees Twenty five thousand per day for each and every default shall be levied by the concerned District Magistrate. In case of default on deposit of such levied penalty the concerned District Magistrate will deduct the said amount from the amount of security deposited against the said mining lease.
