The Offshore Areas Mineral (Development and Regulation) Act, 2002
Administered Ministry: Ministry of Mines
Section 17 Fixed rent.
Provided that where the lessee becomes liable under section 16 to pay royalty for any mineral removed or 1[consumed from the area] covered under such lease, he shall be liable to pay either such royalty or the fixed rent in respect of that area, whichever is greater.
(2) The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which fixed rent shall be payable in respect of any area covered under a production lease and such enhancement or reduction shall take effect from such date as may be specified in the notification:
Provided that the Central Government shall not enhance the rate of the fixed rent more than once during any period of three years.
Section 18 Contribution towards International Seabed Authority.
Section 19 Safety of persons and property.
(2) The Central Government may, by notification in the Official Gazette, declare safety zones in respect of offshore activities as may be necessary and prescribe the norms for regulating the safety and health of persons and safety of property engaged in operations authorised under this Act, the implementation thereof and matters connected therewith.
(3) In the event of any contravention of provisions of sub-section (1) or the norms prescribed under sub-section (2) by the permittee, licensee, lessee or any other person undertaking the reconnaissance operation or exploration operation or production operation under sub-section (1) of section 5, or any other agency undertaking the reconnaissance operation or exploration operation under the proviso to sub-section (1) of the said section, shall also be deemed to be responsible for such contravention unless he or it proves that he or it, as the case may be, had taken all reasonable precautions within his or its means for enforcing those provisions, to prevent such contravention.
Section 19A Duty of Central Government on mineral conservation and development
Section 20 Prevention and control of pollution and protection of marine environment.
(2) Every holder of an operating right shall be liable for any pollution of, or damage to, the marine environment resulting from his activities relating to his operating right in the offshore areas and shall pay such compensation, as may be determined by the administering authority keeping in view the extent of pollution or damage, as the case may be.
(3) The Central Government may prescribe measures to be taken for prevention and control of pollution and protection of marine environment due to activities in the offshore areas.
Section 21 Power of Central Government and administering authority to issue directions.
(2) The permittee, licensee or lessee shall comply with such directions as may be issued from time to time by the competent authority or Coast Guard regarding national security, safety and national integrity.
Explanation.--"competent authority" means the competent authority appointed for the purposes of sub-section (2) by the Central Government in the Ministry dealing with defence of India.
Section 22 Power of entry, inspection, search and seizure.
(a) enter and inspect, at all reasonable times, any mine;
(b) weigh, draw samples or take measurements of the stocks of minerals recovered from any mine;
(c) survey and take samples and measurements in any such mine;
(d) examine any document, book, register or record in the possession or power of any person having the control of, or connected with, any mine and place marks of identification thereon and take extracts from, or make copies of, such document, book, register or record;
(e) order the production of any such document, book, register and record, by the person referred to in clause (d); and
(f) examine any person having the control of, or connected with, any mine.
(2) Any authorised officer may, for the purpose of ascertaining whether or not the requirements of this Act or any rule made thereunder have been complied with, either with, or where it is not possible to obtain warrant conveniently, then, without, a warrant,--
(a) search any mine;
(b) stop or board and search any vessel which is engaged or which is likely to be engaged in any activity regulated under this Act; and
(c) require the person for the time being having command or charge of mine or such vessel to produce any licence, permit, log book or other document relating, to the vessel or mine and examine or take copies of such licence, permit, log book or other document, as the case may be, for ascertaining the requirements of sub-section (1).
(3) Where the authorised officer has reason to believe that any vessel or mine has been, or is being, or is about to be, used or employed, as the case may be, in violation of any provision of this Act or rule made thereunder, he may, with, or where it is not possible to obtain warrant conveniently, then, without, a warrant,--
(a) seize and detain such vessel or mine, including any gear, equipment, stores or cargo found on board such vessel or belonging to the vessel and seize any mineral found on board the vessel;
(b) seize any evidence relating to violation of any provision of this Act or rule made thereunder;
(c) require the person for the time being having command or charge of the vessel, platform or erection of the mine so seized or detained to bring such vessel, platform or erection to any specified port;
(d) arrest any person whom such officer has reason to believe, has committed such violation:
Provided that the authorised officer, after arresting such person and before producing him before the competent court, shall inform the administering authority regarding the arrest and grounds of arrest communicated to the person so arrested.
(4) In taking any action under sub-section (3), the authorised officer may use such force as may be reasonably necessary.
(5) Where any vessel or other things are seized or detained, under sub-section (3),--
(a) the vessel or other things so seized or detained shall, as soon as possible, be produced before the court competent to try an offence under this Act and the court shall make such order as it may deem fit for the retention or custody of such vessel or things with the Central Government or any other authority pending the completion of any proceedings for the prosecution of any offence relating to such vessel or things, as the case may be, under this Act or rules made thereunder:
Provided that the court may, on an application made by the owner or the person for the time being having command or charge of the vessel or mine, order the release of the vessel or other things so seized or detained, to the owner or the person for the tie being having command or charge of the vessel or mine, furnishing security in the form of cash or a bank guarantee for an amount which is not less than fifty per cent. of the value of the vessel or things so seized or detained;
(b) the administering authority shall be informed by the authorised officer of such seizure and the details thereof.
(6) Where, in pursuance of the commission of any offence under this Act, any vessel is pursued beyond the limits of the offshore area, the powers conferred on an authorised officer by this section may be exercised beyond such limits in the circumstances and to the extent recognised by international law and State practice.
(7) Every person to whom an order or warrant is issued or given by virtue of the powers conferred by this section shall be legally bound to comply with such order or warrant.
Explanation.--For the purposes of this section,--
(i) "authorised officer" means an officer of the Central Government notified as such in the Official Gazette, by the Central Government;
(ii) "warrant" means a warrant issued by the Judicial Magistrate or the Metropolitan Magistrate, as the case may be, within whose jurisdiction the place, where the warrant is to be executed, is situated.
Section 23 Offences.
(1) 1[(a) whoever undertakes any reconnaissance operation, or exploration operation, or production operation in an offshore area without a reconnaissance permit, or a composite licence, or an exploration licence, or a production lease, as the case may be, shall be punishable with imprisonment for a term which may extend to five years, or with fine of five lakh rupees, which may extend to ten lakh rupees, or with both;
2* * * * *
Explanation.---For the purposes of 3[clauses (a)], the amount of fine provided shall be in respect of each standard block of such part of the offshore area where such reconnaissance operation, or exploration operation, or production operation is undertaken.]
(c) Any vessel, together with its gear, boats, stores and cargo, used or employed in violation of section 5, along with any mineral recovered or processed in violation of that section, if any, shall be confiscated.
(d) Whoever ships, transports, offers for sale, sells, purchases, imports, exports, or has custody, control or possession of, any mineral recovered, processed or retained in violation of this Act or any rule made thereunder shall be 4[punishable] with imprisonment which may extend to three years, or with fine which may extend to three years, or 5[with fine of twenty-five lakh rupees, which may extend to fifty lakh rupees], or with both.
(2) Whoever--
(a) intentionally obstructs any authorised officer referred to in section 22 in the exercise of any powers conferred under this Act; or
(b) fails to afford reasonable facilities to the authorised officer referred to in section 22 or his assistant to board the vessel or enter the mine or to provide for adequate security to such officer or assistant at the time of entry into the vessel or mine or when they are on board such vessel or mine; or
(c) fails to stop the vessel or mine or to produce the licence, permit, log book or any other document, as the case may be, on board such vessel, or mine, when required to do so by the authorised officer referred to in section 22; or
(d) interferes with, delays, or prevents, by any means, the lawful apprehension of any person under this Act,
shall be 6[punishable with imprisonment which may extend to five years, or with fine of two lakh rupees, which may extend to five lakh rupees], or with both.
7[(2A) Whoever, having been convicted of an offence under sub-section (1) or sub-section (2), is again convicted of an offence under that sub-section, shall, in addition to the punishment provided therefor, be punishable with additional fine which may extend to one lakh rupees for each day during which he continues to commit that offence.]
8[(3) Whoever contravenes the provisions of the rules made under clause (pa) of sub-section (2) of section 35 shall be punishable with imprisonment for a term which may extend to two years or with fine which shall not be less than fifty lakh rupees, which may extend to one crore rupees, or with both, and in the case of a continuing contravention, with additional fine which may extend to five lakh rupees for every day during which such contravention continues after conviction for the first such contravention.
(4) Where any person fails to pay the penalty or the additional penalty, as the case may be, imposed under the provisions of section 28 within ninety days of such imposition, he shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the penalty or additional penalty so imposed or with both.]
1. Subs. by Act 17 of 2023, s. 18, for cls. (a) and (b) (w.e.f. 17-8-2023).
2. Cl. (b) omitted by Act 8 of 2026, s. 2 and Sch. (w.e.f. 1-8-2026).
3. Subs. by Act 8 of 2026, s. 2 and Sch., for “clauses (a) and (b)” (w.e.f. 1-8-2026).
4. Subs. by Act 17 of 2023, s. 18, for “punished” (w.e.f. 17-8-2023).
5. Subs. by s. 18, ibid., for “with fine which may extend to fifty lakh rupees” (w.e.f. 17-8-2023).
6. Subs. by s. 18, ibid., for “punished with imprisonment for a term which may extend to five years, or with fine which may
extend to fifty thousand rupees” (w.e.f. 17-8-2023).
7. Ins. by s. 18, ibid. (w.e.f. 17-8-2023).
8. Subs. by Act 8 of 2026, s. 2 and Sch., for sub-sections (3) and (4) (w.e.f. 1-8-2026).
Section 24 Offences by companies.
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge and that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act, has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary, or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.--For the purposes of this section,--
(a) "company" means anybody corporate and includes a firm or other association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
Section 25 Place of trial.
Section 26 Previous sanction of Central Government for prosecution.
Section 27 Offences triable by Court of Session.
Section 28 Penalty and adjudication.
1[28. Penalty and adjudication.—(1) Whoever,—
(a) contravenes any provision of this Act, other than those covered under sub-sections (1), (2) and (3) of section 23;
(b) contravenes the provisions of the rules made under this Act [except rules made under clause (pa) of sub-section (2) of section 35];
(c) contravenes the terms and conditions of the operating right granted to him; or
(d) fails to furnish the required data, or information, or document under sub-section (2) of section 5 in the manner provided therein,
shall be liable to penalty which shall not be less than ten lakh rupees but which may extend to one crore rupees.
(2) Where any person continues contravention under sub-section (1), even after direction of adjudicating officer appointed under sub-section (3) regarding such contravention, he shall be liable to additional penalty of one lakh rupees for every day during which such contravention continues.
(3) For the purpose of adjudication of penalties under sub-section (1), the Central Government shall appoint an officer not below the rank of Deputy Secretary to the Government of India to be the adjudicating officer, for holding an inquiry and imposing the penalty in the manner as may be prescribed:
Provided that the Central Government may appoint as many adjudicating officers as may be required:
Provided further that no such penalty shall be imposed without giving the person concerned a reasonable opportunity of being heard.]
1. Subs. by Act 8 of 2026, s. 2 and Sch., for Chapter V (w.e.f. 1-8-2026)
Section 29 Extension of enactments to offshore areas.
(a) extend with such restrictions and modifications as it thinks fit, any enactment for the time being in force in India or any part thereof to the offshore area or any part thereof; and
(b) make such provisions as it may consider necessary for facilitating the enforcement of such enactment,
and any enactment so extended shall have effect as if the offshore area or the part thereof, as the case may be, is a part of the territory of India.
Section 30 Compounding of offences.
Provided that such sum shall not, in any case, exceed the maximum amount of the fine which may be imposed under this Act for the offence so compounded.
(2) Where an offence is compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded and the offender, if in custody, shall be released forthwith.
Section 31 Recovery of certain sums as arrears of land revenue.
Section 32 Delegation of powers.
Section 33 Protection of action taken in good faith.
Section 34 Appeals.
(1) Subject to the provisions of sub-section (2), any person aggrieved by an order made by the administering authority or any officer under this Act or the rules made thereunder may prefer an appeal against such order to 1[an officer not below the rank of Joint Secretary to the Government of India, appointed by the Central Government as an appellate authority].
(2) Every such appeal shall be preferred within prescribed period from the date on which the impugned order was made:
Provided that the 2[appellate authority] may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within such prescribed period, permit the appellant to prefer the appeal within a further period as may be prescribed.
(3) On receipt of any such appeal, the 2[appellate authority] shall, after giving the parties to the appeal a reasonable opportunity of being heard and after making such inquiry as it deems proper, make such order, as it may think fit, confirming, modifying or reversing the order appealed against, or may send back the case with such direction as it may think fit for a fresh order after taking additional evidence, if necessary.
1. Subs. by Act 8 of 2026, s. 2 and Sch., for “the Central Government” (w.e.f. 1-8-2026).
2. Subs. by s. 2 and Sch., ibid., for “Central Government” (w.e.f. 1-8-2026).