Section 59(1) in The U.P. Minor Minerals (Concession) Rules, 1963
(1)The propnent who has received letter of intent however has not produced mining plan or has not applied for grant of Environment Clearance within the stipulated period of one month as per the provisions mentioned in Rule 34 shall be liable for penalty of Rs Ten thousand per day. On failure to deposit the amount of penalty, the same shall be deducted by the District Magistrate from the security money deposited against the concerned lease. In case the proponent fails to execute the lease deed within one month of obtaining environment clearance certificate, the District Magistrate shall, subsequent to cancelling the letter of intent, forfeit the first instalment and security money deposited by the proponent in favour of the State Government.
