Section 16 of the Coal Mines (Special Provisions) Act, 2015 provides for compensation payable to prior allottee of coal mines, which is as under :-

“16. Valuation of compensation for payment to prior allottee.

(1)    The quantum of compensation for the land in relation to Schedule I coal mines shall be as per the registered sale deeds lodged with the nominated authority in accordance with such rules as may be prescribed, together with twelve percent simple interest from the date of such purchase or acquisition, till the date of the execution of the vesting order or the allotment order, as the case may be.

(2)The quantum of compensation for the mine infrastructure in relation to Schedule I coal mines shall be determined as per the written down value reflected in the statutorily audited balance sheet of the previous financial year in accordance with such rules and in such manner as may be prescribed.

(3)If the successful bidder or allottee is a prior allottee of any of the Schedule I coal mines, then, the compensation payable to such successful bidder or allottee shall be set off or adjusted against the auction sum or the allotment sum payable by such successful bidder or allottee, as the case may be, for any of the Schedule I coal mines.

(4)The prior allottee shall not be entitled to compensation till the additional levy has been paid.”

Further, the Coal Mines (Special Provisions) Rules, 2014 provides as under :-

“14. Manner of determination of compensation to the prior allottee and lodging of the registered sale deeds.-

1) The compensation payable to the prior allottee shall be determined by the nominated authority in accordance with the provisions of section 16 of the Ordinance and for the said purpose the nominated authority may –

(a)seek information regarding the written down value of the mine infrastructure as reflected in the statutorily audited balance sheet in accordance with the provisions of sub-section (1) of section 8 and sub-section (2) of section 16 of the Ordinance; and

(b)seek assistance from the Central Government or experts regarding determination of compensation payable to the prior allottee in terms of sub-section (2) of section 6 of the Ordinance.

15. Priority of disbursal of proceeds to persons other than the prior allottee.- (1) In accordance with the provisions of section 9 of the Ordinance, the proceeds arising out of land and mine infrastructure in relation to a Schedule I coal mine shall be disbursed priority wise in the following order, namely:-

(a) payment to secured creditors in accordance with the provisions of clause (a) of section 9 of the Ordinance;

Explanation.- In case where there are more than one secured creditors and the proceeds arising out of the land and mine infrastructure is not sufficient for full satisfaction of their claims, then the nominated authority shall pay such creditors in proportion to their secured claims.

(b)all revenues, taxes, cess, additional levy and rates due from the prior allottee to the Central Government or a State Government or to a local authority at the relevant date, and having become due and payable within the twelve months immediately before that date, with respect to the relevant Schedule I coal mine.

(2)Determination of claims.- (a) The nominated authority may invite persons other than the prior allottee to submit their claims with proof of their respective claims within a fixed time period to receive payments under this rule, through publication in at least one English and one Hindi language national newspaper.

(b)every claimant, who fails to file a claim or appropriate proof of the claim within the time specified by the nominated authority, shall not be entitled for the disbursements made by the nominated authority;

(c) upon receipt of the aforementioned claims, the nominated authority shall arrange the claims in the order of priority specified in sub-rule (1) rule 15 and examine the same in accordance with such order of priorities;

(d) the nominated authority shall after such investigation as may, in its opinion be necessary, determine the nature and extent of such claims and may by an order in writing, admit or reject the claim in whole or in part;

(e)in the event of any difference regarding determination of claims in accordance with the order of priority, the matter shall be referred to the Central Government and the decision of the Central Government in this regard shall be binding on the nominated authority.

(3)Manner of disbursement.- The payments referred to in this rule shall be made through the bank account specified by the persons entitled to receive such payments upon verification of the identity of such persons and the claims made by such persons, including the secured creditors as the case may be.”