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Lease related query can we rent out lease ?
MR. ABC IS ENGAGED IN QUARRY RELATED BUSINESS. MR. ABC IS AUTHORISED LEESE HOLDER ON GOVERNMENT RECORD. MR. ABC RENTED THAT QUARRY TO MR. XYZ NOW MR. XYZ EVERY MONTH PAY OUT RENT TO MR. ABC. MR. XYZ DO MINING IN QUARRY AND PRODUCE MINERALS WITH HIS MACHINERY AND MANPOWER. IS LEESE HOLDER CAN GIVE LEESE ON RENT TO ANYONE ? NOW QUESTION IS WHO IS LIABLE TO PAY ROYALTY. MR. ABC WHO IS LEESE HOLDER OR MR. XYZ WHO IS ON RENT ?
Replies (2)
Legally, Mr. ABC remains solely responsible for paying royalties to the government because he is the registered leaseholder. While he can have a private agreement for Mr. XYZ to cover the costs, the government only recognizes Mr. ABC. Furthermore, "renting out" a lease is generally prohibited without formal government approval and could risk the lease being canceled.
A mining lease holder CANNOT sub-lease or transfer mining rights without prior permission of State Government. If NO approval → arrangement may be illegal.
Royalty is payable to Government by the person holding the mining lease in Government records.
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