Revocation of Licenses

(1) The Commission may inquire into the conduct or functioning of any licensee in carrying out the obligations under the Act or rules or regulations framed thereunder or the terms and conditions of its license,-

(a) on receiving a complaint from any consumer or consumer association or any trade association; or

(b) on a reference made to it by the State Government or by the Central Government or the Central Electricity Authority or the Central Electricity Regulatory Commission; or

(c) on receiving a complaint from any company or person involved in the generation, transmission, distribution or supply of electricity; or

(d) on its own knowledge or information derived from any source.

(2) Upon making such inquiry, the Commission may, if in its opinion in the public interest so requires, revoke a license in any of the following cases, namely:-

(a) where the licensee, in the opinion of the Commission, has committed a willful or unreasonable default in doing anything required of him by or under this Act, the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948 or rules made thereunder to the extent applicable in the State, read with the provisions of this Act;

(b) where the licensee commits a breach of any of the terms and conditions of his license the breach of which is expressly declared by such license to render it liable to revocation;

(c) where the licensee fails within the period specified in his license or any longer period which the Commission may allow by order,-

(i) to show, to the satisfaction of the Commission, that he is in a position to fully and efficiently discharge the duties and obligations imposed on him by his license; and

(ii) to make the deposit or furnish the security required by his license; and

(d) where in the opinion of the Commission the financial position of the licensee is such that he is unable to fully and efficiently discharge the duties and obligations imposed on him by his license.

(3) Notwithstanding the provisions of sub-sections (1) and (2), where in its opinion the public interest so requires, the Commission may, on the application or with the consent of the licensee and if the licensee is not a local authority, after consulting the concerned local authority, if any, revoke a license as to the whole or any part of the area of transmission or supply upon such terms and conditions as it thinks fit.

(4) No license shall be revoked under sub-section (2) or (3) unless the Commission has given to the licensee not less than three months' notice in writing, stating the grounds on which it is proposed to revoke the license and has considered any cause shown by the licensee within the period of that notice, against the proposed revocation and has given reasons for such revocation.

(5) The Commission may, instead of revoking the license, permit it to remain in force subject to such further terms and conditions as it thinks fit to impose and any further terms or conditions so imposed shall be binding upon and be observed by, the licensee and be of like force and effect as if they were contained in the license.