Chapter II ESTABLISHMENT AND CONSTITUTION OF

(1) For the purpose of regulating electricity industry in the State, the State Government shall, by notification in the Official Gazette, establish a Commission by the name of the Gujarat Electricity Regulatory Commission. (2) The Commission shall be a body corporate, with perpetual succession and common seal and may sue or be sued in its corporate name and shall, subject to the provisions of this Act, be competent to acquire, hold or dispose of property both movable and immovable, and to contract and do all things necessary for the purposes of this Act. (3) (a) Notwithstanding that by virtue of section 70, the provisions of the Central Act in so far as they relate to State Commission have ceased to apply, the Gujarat Electricity Regulatory Commission established under sub-section (1) of section 17 of the Central Act and functioning immediately before the date of commencement of this Act (hereinafter in this section referred to as “the said Commission”) shall be deemed to be first Commission established under sub-section (1); (b) The Chairperson and members of the said Commission holding office immediately before the said date, shall respectively be the Chairperson and members of the first Commission; (c) the Chairperson and the members of the first Commission shall hold office for the period for which they would have held office under the Central Act subject, however, to the provisions relating to disqualifications, resignation, removal and vacancy in this Act.

The headquarters of the Commission shall be at Ahmedabad or at such other place as the State Government may, by a notification in the Official Gazette, specify.

(b) the other two shall be the persons who have special knowledge and professional experience in the field of finance, commerce, economics, regulation of industry, law or management:

Provided that not more than one member shall be appointed having professional knowledge and experience in the same field.

(3) A member of the Commission shall render whole time service and shall not hold any other office during his tenure of office.

(4) On occurrence of any vacancy in the office of a member due to death, resignation or any other reason, the same shall be filled in by the State Government in the manner provided in this Act.

(1) The State Government shall for the purpose of selecting persons for being appointed as members of the Commission, constitute at such times as specified in sub-section (3), a Selection Committee consisting of the following three members, namely :-

(a) a Judge of the High Court designated by the Chief Justice to be the Chairperson ex-officio;

(b) the Chief Secretary to the Government of Gujarat ex-officio;

(c) the Chairman of the Authority or a member thereof nominated by the Chairman ex-officio.

(2) The Secretary to the Government of Gujarat in Energy and Petro-chemicals Department shall be the Secretary ex-officio.

(3) The State Government shall, within one month from the date of occurrence of any vacancy in the office of a Chairperson or member by reason of his death, resignation or removal or within six months before the superannuation of or the end of tenure of the Chairperson or a member constitute the Selection Committee and make a reference to it for recommending persons for being selected for appointment in the vacancy.

(4) The Selection Committee shall, after satisfying itself that the persons who are being recommended by it possess the qualifications mentioned in sub-section (2) of section 5 and are not disqualified under section 9, recommend within two months from the date on which the reference is received by it a panel of names of two persons for each vacancy in the office of a Chairman or, as the case may be, a member.

(5) The Selection Committee may, for the purpose of recommending persons under sub-section (4) follow such procedure as deemed fit including the appointment of a search committee consisting of such persons as the Selection Committee considers appropriate to suggest the panel of persons possessing the requisite qualification and experience and suitable for being considered for appointment as Chairperson or member of the Commission.

(6) The State Government shall within fifteen days from the date of the recommendation by the Selection Committee under sub-section (4), appoint one of the two persons recommended by the Selection Committee for the vacancy.

(1) A member shall hold office for a period of five years from the date on which he enters upon his office:

Provided that he shall cease to be a member on the day on which he attains the age of sixty-five years.

(2) No person shall be appointed as a member after he has attained the age of sixty-two years.

(3) A member shall not be eligible for re-appointment after the expiry of the term of his office.

(4) The salary and allowances payable to and other conditions of service of the members shall be such as may prescribed:

Provided that the salary and allowances and other conditions of service of a member shall not be varied to his disadvantage during the tenure of his office.

The Chairperson and every member shall, before entering upon his office, make and subscribe to an oath of office and of secrecy in such form and in such manner and before such authority as may be prescribed.

A person shall be disqualified for being appointed or being a member of the Commission, if-

(a) he is a member of the Parliament or of any State Legislature or any local authority ; or

(b) he is a member of a political party;

(c) he is, or at any time, has been adjudged an insolvent or he has suspended payment of his debts or has compounded with his creditors;

(d) he is of unsound mind and stands so declared by a competent court;

(e) he is, or has been convicted of any offence which in the opinion of the State Government, involves moral turpitude;

(f) he has either directly or indirectly any financial or other interest which is likely to affect prejudicially his functioning as a member;

(g) he has either directly or indirectly any financial or other interest in -

(i) generation, transmission, distribution or supply of electricity,

(ii) manufacture, sale or supply of any fuel for generation of electricity,

(iii) manufacture of, or any dealings in, plant and machinery, equipments, apparatus or fittings for the matters specified in sub-clause (i), or

(iv) any body which provides professional services in relation to matters specified in the aforesaid sub-clauses.

(1) Notwithstanding anything contained in sub-section (1) of section 7, the State Government may, at any time, remove any member from office, if, in its opinion, such a member -

(a) is or has become, subject to any of the disqualifications mentioned in section 9,

(b) has been guilty of misconduct in discharge of his duties,

(c) has become physically or mentally incapable of discharging his duties as a member,

(d) has so abused his position as to render his continuance in office prejudicial to public interest, or

(e) has without reasonable cause refused or failed to perform his duties for a period of not less than three months:

Provided that no member shall be removed from his office-

(i) on the ground specified in clause (f) or (g) of section 9 or clause (b), (c), (d) or (e) of this sub-section, unless the High Court on a reference made to it in this behalf by the State Government, has on an inquiry, reported that the member is liable to be removed on such ground;

(ii) on any ground specified in clauses (a) to (e) of section 9, unless an opportunity of being heard is given to the member.

(2) Pending an inquiry against Chairperson or a member under sub-section (1), the State Government may on the recommendation of the High Court suspend the Chairperson or the member from his office.

(3) Any member may resign from his office by giving notice in writing, for such period as may be prescribed, to the State Government, and on such resignation being accepted by the State Government, he shall be deemed to have vacated his office.

A person who ceases to be a member shall not -

(a) be entitled to appear in any proceedings before the Commission as a representative of any person for a period of three years from the date of such cesser;

(b) acquire either directly or indirectly any financial or other interest of the nature specified in clause (g) of section 9 for a period of two years from the date of such cesser;

(c) be appointed directly or indirectly in the service of the State Government or any company, body corporate, institution or undertaking, owned or controlled by the State Government or any electricity industry in the State, or in any subsidiary or associated company or firm of such electricity industry for a period of two years from the date of such cesser.

(1) The Commission shall meet on such day and at such time and place as the Chairperson or, in his absence, a senior member fixes and shall, subject to sub-sections (2), (3) and (4), observe such rules of procedure with regard to transaction of its business at its meetings as may be provided by regulations.

(2) Every meeting shall be presided over by the Chairperson, if he is present at the time appointed for holding the same, and, if the office of the Chairperson is vacant or if the Chairperson is, for any reason, absent, by a member who is senior.

(3) (a) No business shall be transacted at a meeting of the Commission unless at least two members are present from the beginning to the end of such meeting;

(b) All questions at a meeting of the Commission shall be decided by a majority of votes.

(4) If, by reason of disability of a Chairperson or a member or of a vacancy in the office of the Chairperson or a member, there are two members present at the meeting, then in the event of equality of votes, the presiding authority shall have and exercise a second or casting vote.

(5) Notwithstanding anything contained herein, the Commission may decide urgent matters by the procedure of circulation subject to the following conditions:

(a) Where a matter is required to be decided by the Commission urgently, the Chairperson may, instead of bringing the matter for discussion at a meeting of the Commission, direct that it may be circulated to the members for opinion and if all the members are unanimous and the Chairperson thinks that a discussion at a meeting of the Commission is not necessary, the matter shall be decided without such discussion.

(b) If the members are not unanimous or if the Chairperson thinks that a discussion at a meeting is necessary, the matter shall be discussed at a meeting of the Commission.

(1) The Commission in order to enable it to perform its functions, may,-

(a) with the approval of the State Government, determine the number and category of officers and employees, and

(b) appoint Secretary, officers and other employees having regard to the number and category of officers and employees determined under clause (a).

(2) The manner of recruitment of, the salary and allowances payable to, and other conditions of service of the Secretary, officers and other employees, shall be such as may be determined by the Commission by regulations.

The Commission may, for the purpose of enabling it to perform its functions, appoint consultants on such terms and conditions as may be determined by the regulations.

(1) The expenditure of the Commission shall be charged upon the Consolidated Fund of the State.

(2) The Commission may also levy on licensees and other persons seeking any approval, consent, order or directions from the Commission or making any other application to the Commission such fees and charges as the Commission may specify in the regulations and utilise the amounts collected thereof towards meeting the expenses of the Commission.

Provided that:

(1) No act or proceeding of the Commission shall be questioned or be invalid on the ground merely of the existence of any vacancy in, or any defect in, the constitution of the Commission. (2) No act done by any person acting in good faith as a member shall be deemed to be invalid merely on the ground that he was disqualified to be a member or that there was any other defect in his appointment.