Section 24(1) in Karnataka Electricity Reform Act, 1999
(1)Notwithstanding the provisions of sections 6 and 7 of the Indian Electricity Act, 1910, where the Commission revokes a license, under sub-section (2) of section 22 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take effect.(b)The Commission shall invite applications for acquiring the undertaking of the licensee whose license has been revoked and determine the terms and conditions of the sale of the undertaking;(c)The Commission may by notice in writing require the licensee to sell, and thereupon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 additional directors for the undertaking;(e)On and with effect from the date of revocation or where the undertaking of the licensee is sold to a purchaser earlier to the date of revocation in pursuance of any of the provisions of the Act , on and with effect from such date of purchase, all the rights, duties, obligation and liabilities of the licensee under this Act shall cease and stand determined except for any liabilities that have accrued prior to that date.
