28. Sanction required by non-licensees in certain cases .- [(1) No person, other than a licensee, shall engage in the business of supplying energy to the public except with the previous sanction of the State Government and in accordance with such conditions as the State Government may fix in this behalf, and any agreement to the contrary shall be void.
(1-A) The State Government shall not give any sanction under sub-section (1)-(a)except after consulting the State Electricity Board; and(b)except with the consent-(i)in any case where energy is to be supplied in any area for which a local authority is constituted, of that local authority;(ii)in any case where energy is to be supplied in any area forming part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Government for defence purposes, of the Central Government;(iii)in any area falling within the area of supply of a licensee, of that licensee:Provided that except in a case falling under sub-clause (ii), no such consent shall be necessary if the State Government is satisfied that such consent has been unreasonably withheld.](2)Where any difference or dispute arises as to whether any person is or is not engaging, or about to engage, in the business of supplying energy [to the public] [ Inserted by Act 32 of 1959, Section 20.] within the meaning of sub-section (1), the matter shall be referred to the [State Government] [ Substituted by A.O. 1950, for " Provincial Government" .], and the decision of the State Government thereon shall be final.
