⁵⁷Fe Mossbauer spectroscopy and powder XRD has been used to characterize the iron-bearing phase in the lignite samples collected from Giral, Rajasthan. It is found that the samples contain anomalous presence of Jarosite which is generally not found in lignite samples. Simultaneously powder XRD spectra show dominating presence of Ca₂SO₄ It appears that both sulphate minerals (Jarosite and Gypsum Ca₂SO₄) should be highly correlated. The significance of anomalous presence of Jarosite in lignite samples is discussed.