Commissioner of Payments functions  under the following coal  mines acts:-

1) Coking Coal Mines (Nationalisation) Act, 1972

2) Coal Mines (Nationalisation) Act1973

3) Coal Mines (Special Provisions) Act, 2015

Coking Coal Mines (Nationalisation) Act, 1972 and  Coal Mines (Nationalisation) Act, 1973

Office of the Commissioner of Payments (COP) were set up in pursuance of the Coking Coal Mines (Nationalisation) Act, 1972 and the Coal Mines  (Nationalisation) Act1973, one each at Dhanbad and Kolkata for the purpose of disbursement of amounts to settle the liabilities of the ex-owners of coal mines nationalized in 1972-73.

After the work of Dhanbad Office had been disposed of substantially, that office was wind up and its residual work was transferred to the Office of Commissioner of Payment, Kolkata in 1987. Subsequently, in compliance with the recommendations of the Economic Reforms Commission (ERC), the office of Commissioner of Payments, Kolkata has also been wind up w.e.f. 6th June, 2007 and the residual work of the office of Commissioner of Payments, Kolkata has been transferred to the office of Coal Controller.

Coal Mines (Special Provisions) Act, 2015

The Hon’ble Supreme Court of India by order dated 24th August, 2014 read with  the order dated September, 2014 passed in Writ Petition (Criminal) No. 120 of 2012 cancelled allocation of 204 coal blocks allotted between the year 1993 to 31st March, 2011. The Hon’ble court also directed the Central Government for fresh allocation of coal blocks through e-auction process. In compliance with this order the Central Government passed The Coal Mines (Special Provisions) Ordinance, 2014 which was superseded by The Coal Mines (Special Provisions) Act, 2015.

As per provisions of section 15(1) of the Coal Mines (Special Provisions) Act, 2015, the Central Government appointed the Coal Controller as the Commissioner of Payments to disburse the amounts payable to the prior allottees of Schedule-I coal mines.