(1) The secured creditors of the prior allottees which had any security interest in any part of the land or mine infrastructure of a Schedule I coal mine shall be entitled to—
(a) continue with such facility agreements and security interest with the prior allottee if such prior allottee is a successful bidder or allottee; and
(b) in the event that the prior allottee is not a successful bidder or allottee, then the security interest of such secured creditor shall only be satisfied out of the compensation payable to such prior allottee, to the extent determined in accordance with such rules as may be prescribed and the outstanding debt shall be recoverable from the prior allottee.
(2) The Central Government shall, taking into consideration the provisions contained in section 9, prescribe the manner in which the secured creditor shall be paid out of the compensation in respect of any prior allottee.
(a) continue with such facility agreements and security interest with the prior allottee if such prior allottee is a successful bidder or allottee; and
(b) in the event that the prior allottee is not a successful bidder or allottee, then the security interest of such secured creditor shall only be satisfied out of the compensation payable to such prior allottee, to the extent determined in accordance with such rules as may be prescribed and the outstanding debt shall be recoverable from the prior allottee.
(2) The Central Government shall, taking into consideration the provisions contained in section 9, prescribe the manner in which the secured creditor shall be paid out of the compensation in respect of any prior allottee.
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Declaration as to expediency of Union action.Section 3 · Definitions.Section 4 · Eligibility to participate in auction and payment of fees.Section 5 · Allotment of mines to Government companies or corporations.Section 6 · Central Government to act through nominated authority.Section 7 · Power to classify certain Schedule I coal mines by Central Government.Section 8 · Nominated authority to issue vesting order or allotment order.India Code, Government of India. Text fetched 19 Oct 2026. Source metadata reports last modification: 2019-11-29. Check the linked official text and subsequent notifications when applying a provision.