Section 19A(1) in The Karnataka Minor Mineral Concession Rules, 1994
(1)Prohibition of Transfer of leases; The lessee shall not,(a)assign, sub-let, mortgage or in any other manner transfer the quarrying lease or any right, title or interest therein, or(b)enter into any agreement, arrangement or understanding with any person whereby lessee is directly or indirectly financed to a substantial extent by such person and quarrying operation and other activities connected therewith are substantially controlled by such person;Provided that nothing in this rule shall apply to mortgage made by a lessee in favour of the Institutions specified in Schedule VI". (i) (a) " or to transfer of lease held by the lessee to the company or firm in which he is one of the Directors or partners, as the case may be".Provided further that such transfer of lease shall not be made without a written consent of the Competent Authority and such consent shall not be given unless:(i)the lessee has furnished an affidavit along with his application, for transfer of the quarrying lease specifying therein the amount that he has already taken or proposed to take as consideration from the transferee;(ii)the transfer of the quarrying lease is to be made to a company or firm directly under taking quarrying operation in which the lessee is one of the directors or partners as the case may be, in the said company or firm and the company or firm has filed an affidavit stating that they have filed an up to-date Income tax returns, paid the income tax assessed on them and paid the income tax on the basis of self assessment as provided in the Income Tax Act, 1961; and(iii)A processing fee of rupees one thousand is paid in the form of a Demand Draft drawn in favour of the Director of Mines and Geology, Bangalore.Provided also that the lessee shall not charge or accept from the transferee any premium, in addition to the sum spent by him in obtaining the lease, and for conducting all or any of the quarrying operation over the area leased to him".
