Section 20 in Telangana Electricity Reform Act, 1998
20. Provisions where licence is revoked.
(1)Notwithstanding the provisions of sections 6 and 7 of the Indian Electricity Act, 1910 where the Commission revokes a licence, under sub-section (2) of section 18, the following provisions shall apply:-(a)the Commission shall serve a notice of revocation upon the licensee and shall fix a date on which the revocation shall take effect with effect from that date or with effect from the earlier date on which the undertaking of the licensee is sold to a purchaser in pursuance of any of the provisions of this Act, all the rights, duties, obligations and liabilities of the licensee under this Act shall absolutely cease and determine except for any liabilities that have accrued to that date;(b)the Commission shall invite applications for acquiring the undertaking of the licensee whose licence has been revoked and determine terms and conditions of the sale of the undertaking;(c)the Commission may, by notice in writing, require the licensee to sell, and thereupon the licensee shall sell the undertaking to the person whose application has been accepted by the Commission. Such person is referred to in this section as the "purchaser"; and(d)the Commission may make such interim arrangement in regard to the undertaking of the licensee for maintaining the electricity transmission and supply as may be considered appropriate including the appointment of administrators and special directors for the undertaking.(2)Where an undertaking is sold under sub-section (1), the purchaser shall pay to the licensee the purchase price of the undertaking determined in accordance with the application submitted by the purchaser.(3)Where the Commission issues any notice under sub-section (1) requiring the licensee to sell the undertaking, it may by such notice require the licensee to deliver and thereupon the licensee shall deliver on a date specified in the notice, the undertaking to the designated purchaser pending the payment of the purchase price of the undertaking. Any pending fines and charges shall be deducted from the amounts payable to the licensee:Provided that in any such case, the purchaser shall pay to the licensee interest at such rate not less than the Reserve Bank lending rate ruling at the time of delivery of the undertaking as the Commission may decide, on the purchase price of the undertaking for the period from the date of delivery of the undertaking to the date of payment of the purchase price.(4)Where before the date fixed in the notice issued under clauses (a) of sub-section (1) as the date on which the revocation of the licence shall take effect, no notice has been issued to the licensee requiring him to sell the undertaking or where for any reason no sale of the undertaking has been effected under that sub-section, the State Government shall acquire the undertaking on the date of revocation of the licence and shall pay to the licensee an amount determined in accordance with sub-sections (1) and (2) of section 7-A of the Indian Electricity Act, 1910, as amended in the State and shall perform all the obligations of the licensee until such time as the State Government is able to sell the undertaking to a new licensee which it shall endeavor to do expeditiously without undue delay.(5)The licensee shall duly implement the orders of the Commission, notwithstanding that the licensee may be aggrieved by the order of the Commission and intends to take legal action challenging the orders of the Commission.
