PART – XII
Investigation And Enforcement
Appeal to Appellate Authority.
- If on an inspection of any place or premises or after inspection of the equipments,
gadgets, machines, devices found connected or used, or after inspection of records
maintained by any person, the assessing officer comes to the conclusion that such
person is indulging in unauthorized use of electricity, he shall provisionally assess
to the best of his judgement the electricity charges payable by such person or by
any other person benefited by such use.
- The order of provisional assessment shall be served upon the person in occupation
or possession or in charge of the place or premises in such manner as may be prescribed.
- The person, on whom a notice has been served under subsection (2) shall be entitled
to file objections, if any, against the provisional assessment before the assessing
officer, who may, after affording a reasonable opportunity of hearing to such person,
pass a final order of assessment of the electricity charges payable by such person.
- Any person served with the order of provisional assessment, may, accept such assessment
and deposit the assessed amount with the licensee within seven days of service of
such provisional assessment order upon him: Provided that in case the person deposits
the assessed amount he shall not be subjected to any further liability or any action
by any authority whatsoever.
- If the assessing officer reaches to the conclusion that unauthorised use of electricity
has taken place, it shall be presumed that such unauthorized use of electricity
was continuing for a period of three months immediately preceding the date of inspection
in case of domestic and agricultural services and for a period of six months immediately
preceding the date of inspection for all other categories of services, unless the
onus is rebutted by the person, occupier or possessor of such premises or place.
- The assessment under this section shall be made at a rate equal to one-and-half
times the tariff rates applicable for the relevant category of services specified
in sub-section (5). Explanation.- For the purposes of this section,
- “ assessing officer” means an officer of a State Government or Board or licensee,
as the case may be, designated as such by the State Government ;
- “ unauthorised use of electricity” means the usage of electricity –
- by any artificial means; or
- by a means not authorised by the concerned person or authority or licensee; or
- through a tampered meter; or
- for the purpose other than for which the usage of electricity was authorised.
Investigation of certain matters
- Any person aggrieved by a final order made under section 126 may, within thirty
days of the said order, prefer an appeal in such form, verified in such manner and
be accompanied by such fee as may be specified by the State Commission, to an appellate
authority as may be prescribed.
- No appeal against an order of assessment under sub-section (1) shall be entertained
unless an amount equal to one third of the assessed amount is deposited in cash
or by way of bank draft with the licensee and documentary evidence of such deposit
has been enclosed along with the appeal.
- The appellate authority referred to in sub-section (1) shall dispose of the appeal
after hearing the parties and pass appropriate order and send copy of the order
to the assessing officer and the appellant.
- The order of the appellate authority referred to in sub-section (1) passed under
sub-section (3) shall be final.
- No appeal shall lie to the appellate authority referred to in subsection (1) against
the final order made with the consent of the parties.
- When a person default in making payment of assessed amount, he, in addition to the
assessed amount shall be liable to pay, on the expiry of thirty days from the date
of order of assessment, an amount of interest at the rate of sixteen per cent per
annum compounded every six months.
Orders for securing compliance
- The Appropriate Commission may, on being satisfied that a licensee has failed to
comply with any of the conditions of licence or a generating company or a licensee
has failed to comply with any of the provisions of this Act or rules or regulations
made thereunder, at any time, by order in writing, direct any person (hereafter
in this section referred to as “ Investigating Authority” ) specified in the order
to investigate the affairs of any generating company or licensee and to report to
that Commission on any investigation made by such Investigating Authority: Provided
that the Investigating Authority may, wherever necessary, employ any auditor or
any other person for the purpose of assisting him in any investigation under this
- Notwithstanding anything to the contrary contained in section 235 of the Companies
Act, 1956, the Investigating Authority may, at any time, and shall, on being directed
so to do by the Appropriate Commission, cause an inspection to be made, by one or
more of his officers, of any licensee or generating company and his books of account;
and the Investigating Authority shall supply to the licensee or generating company,
as the case may be, a copy of his report on such inspection.
- It shall be the duty of every manager, managing director or other officer of the
licensee or generating company, as the case may be, to produce before the Investigating
Authority directed to make the investigation under subsection (1), or inspection
under sub-section (2), all such books of account, registers and other documents
in his custody or power and to furnish him with any statement and information relating
to the affairs of the licensee or generating company, as the case may be, as the
said Investigating Authority may require of him within such time as the said Investigating
Authority may specify.
- Any Investigating Authority, directed to make an investigation under sub-section
(1), or inspection under sub-section (2), may examine on oath any manager, managing
director or other officer of the licensee or generating company, as the case may
be, in relation to his business and may administer oaths accordingly.
- The Investigating Authority, shall, if it has been directed by the Appropriate Commission
to cause an inspection to be made, and may, in any other case, report to the Appropriate
Commission on any inspection made under this section.
- On receipt of any report under sub-section (1) or sub-section (5), the Appropriate
Commission may, after giving such opportunity to the licensee or generating company,
as the case may be, to make a representation in connection with the report as in
the opinion of the Appropriate Commission, seems reasonable, by order in writing—
- require the licensee or the generating company to take such action in respect of
any matter arising out of the report as the Appropriate Commission may think fit;
- cancel the licenece; or
- direct the generating company to cease to carry on the business of generation of
- The Appropriate Commission may, after giving reasonable notice to the licensee or
the generating company, as the case may be, publish the report submitted by the
Investigating Authority under sub-section (5) or such portion thereof as may appear
to it to be necessary.
- The Appropriate Commission may specify the minimum information to be maintained
by the licensee or the generating company in their books, the manner in which such
information shall be maintained, the checks and other verifications to be adopted
by licensee or the generating company in that connection and all other matters incidental
thereto as are, in its opinion, necessary to enable the Investigating Authority
to discharge satisfactorily its functions under this section.
Explanation.- For the purposes of this section, the expression
“ licensee or the generating company” shall include in the case of a licensee incorporated
- all its subsidiaries formed for the purpose of carrying on the business of generation
or transmission or distribution or trading of electricity exclusively outside India;
- all its branches whether situated in India or outside India.
- All expenses of, and incidental to, any investigation made under this section shall
be defrayed by the licensee or generating company, as the case may be, and shall
have priority over that debts due from the licensee or the generating company and
shall be recoverable as an arrear of land revenue.
Procedure for issuing directions by Appropriate Commission.
- Where the Appropriate Commission, on the basis of material in its possession, is
satisfied that a licensee is contravening, or is likely to contravene, any of the
conditions mentioned in his licence or conditions for grant of exemption or the
licensee or the generating company has contravened or is likely to contravene any
of the provisions of this Act, it shall, by an order, give such directions as may
be necessary for the purpose of securing compliance with that condition or provision.
- While giving direction under sub-section (1), the Appropriate Commission shall have
due regard to the extent to which any person is likely to sustain loss or damage
due to such contravention.
The Appropriate Commission, before issuing any direction under section 129, shall--
- serve notice in the manner as may be specified to the concerned licensee or generating
- publish the notice in the manner as may be specified for the purpose of bringing
the matters to the attention of persons, likely to be affected,or affected;
- Consider suggestions and objections from the concerned licensee or generating company
and the persons, likely to be affected, or affected.