The Coal Bearing Areas (Acquisition and Development) Act, 1957

Scope and purpose

The Coal Bearing Areas (Acquisition and Development) Act, 1957 applies across India and governs land containing, or likely to contain, coal deposits. It allows the Central Government to investigate such land, acquire the land or particular rights over it, and extinguish or modify rights arising from agreements, leases, licences or other arrangements.

Who may be affected

The Coal Bearing Areas (Acquisition and Development) Act, 1957 may affect landowners, occupiers, buyers, mining lessees, prospecting licence holders and anyone entitled to claim compensation for land or rights acquired. A buyer or professional examining land in Tamil Nadu should note whether an Official Gazette notification covers the property or rights over it.

Key process and powers

The Coal Bearing Areas (Acquisition and Development) Act, 1957 provides the following process:

• The Central Government may publish a preliminary notification when coal is likely to be found in a locality. The notification must briefly describe the land and state its approximate area.
• A competent authority and its workers may enter and survey land, dig or bore into the soil, mark boundaries and carry out other necessary prospecting work.
• Entry into a building, enclosed court or garden attached to a dwelling requires the occupier's consent or at least seven days' written notice.
• Existing prospecting licences covering coal or other minerals cease to have effect. Mining lease operations on the notified land cease while the preliminary notification remains in force.
• The competent authority must pay or offer payment for necessary damage before or when prospecting action is taken. Disputes are referred to the Central Government, whose decision is final.
• If coal is obtainable, the Central Government may notify its intention to acquire all or part of the land, or rights over it, within two years of the preliminary notification. That period may be extended by no more than one year in total.
• An interested person may object in writing within thirty days of the acquisition notification and must be given an opportunity to be heard. A wish to mine the coal personally is not a valid objection.
• In urgent cases, the Central Government may remove the objection process.

Effect of acquisition

The Coal Bearing Areas (Acquisition and Development) Act, 1957 requires an acquisition declaration to be published in the Official Gazette. On publication, the identified land or rights vest absolutely in the Central Government, free from all encumbrances. The Central Government may also direct vesting in a Government company.