Corporate Mergers And The Transfer Of Mining Leases In India: A Critical Analysis Of Regulatory Overlaps And Legal Constraints In Light Of The Sarda Mines Case
- IJLLR Journal
- Aug 11
- 1 min read
Upasana Priya, Research Scholar, Chanakya National Law University, Patna
ABSTRACT
Mergers and acquisitions have become an important tool for corporate restructuring in India's mining and steel industries. However, mergers involving mining corporations present special regulatory hurdles since, mining rights are subject to sector-specific legislation. While the Companies Act of 2013 allows for the automatic vesting of assets and liabilities in the transferee company after approval by the National Company Law Tribunal, the Mines and Minerals (Development and Regulation) Act of 1957 requires prior approval from the state government for mining lease transfers.
This dual regulatory structure raises legal concerns about the transferability of mining leases during mergers and amalgamations. This study investigates the legislative framework, judicial interpretations, and regulatory practices that govern such transfers. It claims that a lack of coordination between corporation law and mineral governance causes procedural delays and legal issues in mining-related mergers. The study concludes by advocating legislative harmonization and a streamlined regulatory structure to allow for effective business reorganization while maintaining governmental control over natural resources.
Keywords: mining leases, mergers and acquisitions, mineral governance, corporate restructuring, and mining regulations.
