Section 4 in The Central Electricity Regulatory Commission (Procedure, Terms and Conditions for Grant of Trading Licence and other Related Matters) Regulations, 2009
4. Disqualifications.
- The applicant shall not be qualified for grant of licence if:(a)The applicant, or any of his associates, or partners, or promoters, or Directors is an undischarged insolvent; or(b)The applicant, or any of his associates or partners, or promoters, or Directors has been convicted of an offence involving moral turpitude, fraud, or any economic offence during the year of making the application or three years immediately preceding that year and a period of six months has not elapsed since his release from imprisonment, if any, consequent to such conviction; or(c)An order cancelling the licence of the applicant, or any of his associates, or partners, or promoters, or Directors, has been passed by the Commission; or(d)The applicant holds a licence for transmission of electricity; or(e)The applicant, or any of his associates, or partners, or promoters, or Directors has in the past been(i)refused a licence on the grounds which continue to remain valid,or(ii)found guilty in any proceedings for non-compliance of any of the provisions of the Act or the rules or the regulations made thereunder or an order made by the Appropriate Commission, during the year of making the application or five years immediately preceding that year;or(f)The applicant is not considered a fit and proper person for the grant of licence for any other reason to be recorded in writing.Explanation. - For the purpose of determining as to whether the applicant is a 'fit and proper person', the Commission may take account of any consideration as it deems fit, including but not limited to the following namely:(i)financial integrity of the applicant,(ii)his competence;(iii)his reputation and character; and(iv)his efficiency and honesty.
