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UTTAR PRADESH ELECTRICITY REFORMS ACT, 1999

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S.1 Short title, extent and commencement.

(1) This Act may be called the Uttar Pradesh Electricity Reforms Act, 1999.

(2) It extends to the whole of the State of Uttar Pradesh.

(3) It shall come into force on such date as the State Government may, by notification, appoint in this behalf.

S.2 Definitions.

In this Act,

     (a) "area of supply" means the area within which a licensee is authorised to supply electricity ;

     (b) "area of transmission" means the area within which a licensee is authorised to transmit electricity ;

     (c) "Board" means the Uttar Pradesh State Electricity Board constituted under section 5 of the electricity (Supply) Act, 1948 ;

     (d) "Central Act" means The Electricity Regulatory Commissions Act, 1998 (Act 14 of 1998) ;

     (e) "Chairperson" means the Chairperson of the Commission ;

     (f) "Commission" means the Uttar Pradesh Electricity Regulatory Commission referred to in section 3 ;

     (g) "licence" means a licence granted under Chapter V ;

     (h) "licensee" means a person who holds a license and includes the provisional licensee referred to in clause (a) of sub-section (3) of section 13 ;

     (i) "Member" means a Member of the Commission and includes the Chairperson ;

    

S.3 Constitution of the Commission.

(1)
    (a) There shall be a commission in the State to be known as the Uttar Pradesh Electricity Regulatory Commission to exercise the powers conferred on, and to performs the function assigned to, it under this Act ;

     (b) The Uttar Pradesh Electricity Regulatory Commission established and constituted under section 17 of the Central Act shall be the Commission under this Act and the Chairperson and Member thereof shall be deemed to have been appointed as such under this Act.

(2) The Commission shall be a body corporate and its head quarter shall be at Lucknow.

(3) The Commission shall consist of a Chairperson and two Member to be appointed by the State Government from amongst the persons possessing the following qualifications:-

    (a) one person having Bachelor's Degree in Engineering with experience of not less than twenty-five years in the field of generation, transmission or supply of electricity and having worked for at least two years on

S.4 Constitution of the Selection Committee.

(1) For the purpose of making appointment of the Chairperson and Members, the State Government shall constitute a Selection Committee which shall consist of-

     (a) A person who has been a Judge of the High Court. - Chairman

     (b) The Chief Secretary to the State Government - Member

     (c) The Chairman, Central Electricity Authority or his nominee not below the rank of Member of the Central Electricity Authority - Member

(2) The State Government shall within one month from the date of occurrence of any vacancy by reason of death, resignation or removal and six months before the superannuation or end of tenure of the Chairperson or other Member, make a reference to the Selection Committee for filling up of the Vacancy.

(3) The Selection Committee while making selection of the Chairperson and other Members, shall have due regard to performance record, ability, integrity, character, qualifications and experience o

S.5 Term of office and conditions of service of Members.

(1) The Chairperson or other Member shall hold office for a term of five years from the date on which he enters upon his office or till he attains the age of sixty-five years whichever is earlier and shall not be eligible for reappointment :

Provided that a Member other than the Chairperson shall he eligible for appointment as Chairperson for the remaining period of his term as Member.

(2) A Member may at any time by giving in writing to the Governor notice of not less than three months relinquish his office or may be removed from his office in accordance with the provisions of section 7.

(3) The Chairperson shall, before entering upon his office, make and subscribed an oath of office and secrecy before the Governor and every other member before the Chairperson in such form as may be prescribed.

(4) The salary and allowances payable to, and other terms and conditions of service of the Members shall be such as may be prescribed.

(5) The salary al

S.6 Disqualification for being a Member.

A person shall be disqualified for appointment as a Member, if he, -

    (a) has been adjudged an insolvent ; or

    (b) has become physically or mentally incapable of acting : or

    (c) has been convicted and sentenced to imprisonment for any offence involving moral turpitude : or

    (d) has acquired such financial or other interest as is likely to affect his function as a Member : or

    (e) has so abused his position as to render his continuance in office prejudicial to the public interest ; or

    (f) is a Member of Parliament, the State Legislature or any local authority or is a candidate for election thereto ; or

    (g) is a member of a political party or holds a post therein.



S.7 Removal of Member.

(1) Subject to the provisions of sub-section (2), any Member shall only be removed from his office by the State Government on the ground of proved misbehavior after the Chief justice of the High Court or a sitting judge of the High Court nominated in this behalf by the Chief Justice, on reference being made to him by the State Government, has, no inquiry, held by him in accordance with the procedure specified in this behalf by the Chief justice or such judge, reported that the Member ought on any such ground to be removed.

(2) Notwithstanding anything contained in sub-section (1), the State Government may, by order, remove a member from his office if he has incurred any of the disqualification mentioned in section 6.

(3) Notwithstanding anything contained in sub-section (2), no member shall be removed from his office on the ground specified in clause (b), clause (d) or clause (e) of section 6 unless the Chief Justice of the High Court or a sitting judge of the High Cour

S.8 Officers of the Commission and other staff.

(1) The Commission may appoint a Secretary to exercise and perform under the control of the Chairperson, such powers and duties as may be specified by regulations.

(2) The Commission may, in consultation with the State Government, determine the number, nature and categories of other officers and employees required to assist the Commission in the discharge of its functions and appoint them.

(3) The salaries and allowances payable to and other conditions of service of the Secretary, officers and other employees shall be such as may be determined by regulations, in consultation with the State Government.

(4) The Commission may appoint Consultants required to assist the Commission in discharge of its functions on such term and conditions as may be determined by regulations.

S.9 Proceedings of the Commission.

(1) The Commission shall ordinarily meet once in every fortnight at such time and place within the State as the Chairperson may think fit ;

Provided that a meeting shall be convinced earlier if a request is so made by a Member.

(2) All matters which come up before the Commission shall be decided by a majority of the Member present and voting and all decisions directions and orders or the Commission shall be in writing supported by reasons and shall be available for inspection by any person and copies of the same shall also be made available in such manner as the Commission may determine.

(3) Two Members shall form the quorum for a meeting of the Commission, but in case of a difference of opinion among them on any issue, the matter shall be placed at the next meeting :

Provided that where there is a vacancy in the Commission or only two Members are present at the meeting, the Member presiding over the meeting shall have a casting vote.

(4) The Com

S.10 Functions of the Commission.

The Commission shall have the following functions namely,

     (a) to determine the tariff for electricity, wholesale, bulk, grid or retail, as the case may be :

     (b) to determine the tariff payable for the use of the transmission facilities ;

     (c) to regulate power purchase and procurement process of the transmission utilities and distribution utilities including the price at which the power shall be procured from the generating companies, generating stations or from other sources for transmission, sale, distribution or supply in the State.

     (d) to promote competition, efficiency and economy in the activities of the electricity industry to achieve the objects and purposes of this Act ;

     (e) to regulate investment approval for transmission, distribution or supply of electricity to the entities operating within the State ;

     (f) to aid and advise the State Government in matters concerning electricity generation, transmission

S.11 Powers of the Commission.

(1) The Commission shall, while performing its adjudicatory functions under this Act, have all the powers of a Civil Court trying a suit in respect of the following matters, namely.-

     (a) summoning and enforcing the attendance of any person and examining him on oath ;

     (b) requiring the discovery and production of any document ;

     (c) receiving evidence on affidavits ;

     (d) requisitioning any public record or copy thereof from any court of office ;

     (e) issuing commissions for the examination of witnesses and documents ; and

     (f) any other matter which may be prescribed.

(2) The Commission shall have the power to require any person:

     (a) to produce before, and allow to be examined and kept by, an officer of the Commission specified in this behalf, such books, accounts, or other documents in the custody or under the control of the person so enquired as may be specified or described in the requis

S.12 Powers of the State Government

(1) The State Government may, from time to time, issue directions not inconsistent with this Act, on a policy matter in regard to electricity and if any dispute arises between the Commission and the State Government as to whether a question is or is not a policy matter, it shall be referred to the Central Electricity Regulatory Commission whose decision thereon shall be final and binding.

(2) (a) The State Government shall be entitled to issue policy directions with respect to the subsidies to be granted for supply of electricity to any class or classes or persons or in respect of any area in addition to the subsidies adjusted by the Commission while regulating and approving the tariff structure :

Provided that the State Government shall contribute the amount to compensate licensee or person affected by the grant of the subsidies to the extent of the subsidies granted.

(b) The amount of the subsidy to be paid under clause (a) and the method and manner of payment

S.13 Formation and functions of the Uttar Pradesh Power Corporation Limited.

(1) For the purposes of procurement, transmission and supply of electricity, a Company by the name of the Uttar Pradesh Power Corporation Limited shall be formed and registered under the Companies Act, 1956 as soon as may be after the commencement of this Act by the State Government.

(2) The Power Corporation shall undertake planning and coordination in regard to transmission and shall determine the Commission, the Regional Electricity board, the Central Electricity Regulatory Commission and the Central Electricity Authority.

(3) The Power Corporation shall,

     (a) be provisional licensee for transmission and supply of electricity with in the state until the grant of licence by the commission;

     (b) be responsible for transmission system operations ;

     (c) be the legal successor of the Board in relation to all power purchase and transmission agreement entered into by the Board with generating and transmission companies including those own

S.14 Licensing

(1) No person shall engage in the business of transmission or supply of electricity unless he,

     (a) holds a licence ; or

     (b) is exempted under section 16 from the requirement of a licence ; or

     (c) is so authorized under the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948 ;

(2) Where a dispute arises as to whether any person is no is not engaged in the business of transmission or supply of electricity under sub-section (1), the matter shall be referred to the Commission and the decision of the Commission thereon shall be final.

(3) The Commission shall have the powers to order a person, who is not a licencee, to cease operating and disconnect its apparatus.

S.15 Grant of licence by the Commission

(1) The Commission may on an application made in such form and on payment of such fee, as may be provided by regulations, grant a licence authorizing any person for transmission or supply of electricity, or both, in an area of transmission or supply, or both, as the case may be.

(2) In respect of the grant of a licence under sub-section (1), the following provisions shall apply :

     (a) any person applying for a licence shall publish a notice of his application in such manner, and with such particulars as may be provided in the regulations within fourteen days after making the application ;

     (b) the Commission shall not grant a licence until,

     (i) the objections, if any, received within three months from the date of last publication of the notice referred to in clause (a) have been considered by the Commission ;

     (ii) in the case of an application for licence to transmit or supply of electricity in an area which includes the whole

S.16 Exemptions from the licence.

(1) The Commission may grant exemption from the requirement of a licence on such terms and conditions as may be specified in the regulations :

Provided that the commission shall into grant any exemption under this sub-section except with the consent :

     (i) in case where electricity is to be supplied in an area forming part of any cantonment, aerodrome, fortress, arsenal, or camp or any building or place in the occupation of the Central Government for defense purposes of the Central Government ;

     (ii) in case, where electricity is to be supplied in an area falling within the area of supply of a licensee, of that licensee:

     Provided further that except in a case under Clause IV of the first proviso, no such consent shall be necessary if the commission is satisfied that such consent has been unreasonably withheld.

(2) An exemption may be granted to a person or to a class of persons for a definite period and every such exemption shall be

S.17 Duties and powers of the licencee

(1) It shall be the duty of the licencee of transmission or supply i respect of an area of transmission or supply as the case may be to develop and maintain an efficient, co-ordinated and economical system of electricity transmission or supply.

(2) Every licencee and generating company shall comply with the provisions of the regulations made from time to time governing the terms and conditions for the operation and maintenance of the power system and electric supply lines.

(3) Section 12 to 19 of the Indian Electricity Act, 1910 shall have effect in relation to a licencee as if he were a licensee under the said Act :

Provided that the Commission may impose such restrictions, exceptions and conditions as it may deem fit.

(4) A licensee may unless expressly prohibited by the licence, enter into arrangements for the purchase of electricity from,
     (a) the holder of a supply licence which permits the holder of such licence to supply electricity to ot

S.18 Revocation of licence.

(1) The Commission may inquire into the functioning of a licencee in respect of his obligations under this Act, in the following circumstances, namely :
     (a) upon receiving a complaint from any consumer or consumer association or any trade association ; or
     (b) upon a reference made to it by the State Government the Central Government, the Central Electricity Regulator Commission or Central Electricity Authority ; or
     (c) upon receiving a complaint form a person engaged in the generation transmission, distribution or supply of electricity : or
     (d) upon its own knowledge or information that the licensee is committing or has committed any default in carrying out such obligations.

(2) The Commission may revoke a licence on one ro more of the following grounds, namely,
     (a) that the licensee has committed a willful default to do anything required to be done by or under this Act, the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 19

S.19 Amendment of the licence

(1) The Commission may, either no its own or on an applicant licensee make such alterations and amendments in the terms and conditions or as it thinks fit : Provided that no such alterations or amendments shall be made except consent of the licensee unless such consent has in the opinion of the Commission have been unreasonably withheld.

(2) Where the licensee has made an application under subsection following provisions shall apply namely :
     (a) the licensee shall publish notice of the application in such and with such particulars as may be provided by regulations ;
     (b) the Commission shall not make any alteration or amendment, all the objections received within three months from the date of the publication of the notice have been considered ; and
     (c) in the case of an application proposing amendments in an area transmission or supply comprising the whole or any part of any canton acrodrome, fortress, arsenal, or camp or of any building or place in occu

S.20 Procedure to be followed after revocation of the licence.

(1) Notwithstanding anything contained in the provisions of sections 6 and 7 of the Indian Electricity Act, 1910, where the Commission decides to revoke a licence under section 18, the following provisions shall apply, namely :
     (a) the decision of the Commission shall be communicated to the licensee and the licence shall stand revoked on such communication of the decision ;
     (b) the Commission shall, simultaneously with the communication of its decision under clause (a), make such interim arrangement in regard to the undertaking of the licensee for the purposes of maintaining and continuing transmission and supply of electricity as it may consider appropriate including the appointment of an administrator or administrators for such undertaking and such administrator or administrators shall be deemed to be interim licensees;
     (c) the Commission shall by advertising in atleast two widely circulated newspapers invite applications from such persons as are intending to

S.21 Restrictions on licensees and generating companies

(1) No licensee or generating company shall unless it has applied for and obtained the consent in writing of the Commission acquire the licence or the undertaking of or associate with any other licensee or any other person generating transmitting supplying or intending to generate transmit or supply electricity.

Provided that the Commission shall hear such person or authority as it considers proper before giving the consent under this section.

(2) The Commission shall dispose of an application received under sub-section (1), within two months of receiving such application, after taking into account the objection, if any of the concerned person or authority.

(3) The licensee shall not assign his licence or transfer his undertaking or any part thereof, by sale, mortgage, lease exchange or otherwise without the previous consent in writing of the Commission.

(4) Any person to whom the provisions of section 44 of the Electricity (Supply) Act, 1948 are applica

S.22 Annual accounts of a licensee

Every licensee shall unless expressly exempted under the licence prepare and render to the Commission, on or before such date in each year as may be specified in the licence, an annual statement of accounts of his undertaking and of each separate business unit in such form and containing such particulars, as may be required under thelicence and such statements shall be published in at least two daily newspapers having wide circulation in the area concerned.

S.23 Transfer of the Board's properties, powers functions duties and personnel

(1) On and from the date specified in a transfer scheme prepared and notified by the State Government to give effect to the objects of this Act, hereinafter referred to as the appointed date in this Act, all properties and all interest rights and liabilities of the Board therein shall vest in the State Government.

(2) The properties interest rights and liabilities vested in the State Government under sub-section (1) shall be reverted by the State Government in the power Corporation and in a generating company in accordance with the transfer scheme so notified along with such other property interest rights and liabilities of the State Government as may be specified in such scheme on such terms and conditions as may be determined by the State Government.

(3) In addition to the rights and powers of the Power Corporation as specified in Chapter IV of this Act such of the rights and powers exercisable by the Board under the Electricity (Supply) Act, 1948, as the State Govern

S.24 Licensee's revenues and tariffs

(1) The licensee shall follow the procedure specified in the regulations in calculating the expected revenue from charges which he is permitted to recover and in determining tariffs.

(2) Save as provided in sub-section (3), the Commission may specify in regulations the terms and conditions for the determination of the revenue and tariffs and in doing so the Commission shall be guided by the following, namely :

     (a) the financial principles and their application provided in sections 46, 57 and 57-A of the Electricity (Supply) Act, 1948 and in the Sixth Schedule thereto ;

     (b) the factors which would encourage efficiency, economical use of the resources, good performance, optimum investments, observance of the conditions of the licence and other matters which the Commission may consider appropriate for the purposes of this Act; and

     (c) the interest of the consumers.

(3) Where the Commission departs from the factors specified in clauses (a

S.25 Financing of licensees and generating companies

(1) The State Government may, from time to time, make subventions to any licensee for the purpose of sub-section (2) of section 12 for such months as may be recommended by the Commission.

(2) The State Government may from time to time, advance loans to any licensee or generating company which for the time being is wholly or substantially owned by the State Government, on such terms and conditions as the State Government may determine.

(3) The State Government may guarantee, in such manner as it thinks fit, the repayment of the principal or the payment of interest, or both, of any loan proposed to be raised by, or the discharge of any other financial obligation of any licensee or generating company for the time being wholly or substantially owned by the State Government :

Provided that the State Government shall, so long as such guarantee is in force, lay before the State Government every year a statement of the guarantees, if any, given during the preceding year

S.26 Order by the Commission

(1) Where it comes to the knowledge of the Commission from a complaint or otherwise that any of the terms and conditions of a licence has been contravened by the licensee or is likely to be contravened it may by an order require the licensee to do, or to abstain from doing such things as may be specified in such order for the purposes of securing compliance with the terms and conditions of the licence.

(2) While making an order under this section, the Commission shall have regard to the following facts, namely,

(a) the extent to which the contravention referred to in subsection (1) will affect the achievement of the objects and purposes of this Act ;
(b) the extent to which any person is likely to sustain loss or damage in consequence of anything which is likely to be done or omitted to be done in contravention of any of the terms and conditions of the licence, before an order can be made ; and
(c) any other remedy available in respect of the contravention re

S.27 Enforcement of the orders and directions of the Commission

(1) Without prejudice to the provision of Section 45, every direction or order made by the Commission may be enforced by the Commission as if it were a decree or order made by a Civil Court and the Commission had all the power to execute it.

(2) The Commission shall have the powers to take such assistance from the police and other authorities as may be considered necessary for the enforcement of its orders and directions.

S.28 Fines compensation and charges

(1) The Commission shall have the powers to impose such fines and charges as may be provided by the regulation for contravention by a generating company licensee or other person, of any of the provisions of this Act or the rules and regulations made thereunder or the directions or orders of the Commission made from time to time. The fines that the Commission may impose may extend to rupees five lakh for contravention of any of the provisions of this Act and in case of a Continuing contravention, the Commission may impose a further fine which may extend to rupees twenty thousand for each day during which such contravention continues.

(2) The Commission shall have the power to direct the person, who has contravened the provisions of this Act, to make payment of compensation to the person who has suffered loss or damage due to such contravention.

(3) The fines and charges imposed and compensation ordered to be paid under this section shall be in addition to and not in dero

S.29 Electricity Advisory Committee

(1) The Commission shall in consultation with the State Government constitute a committee to be known as the Electricity Advisory Committee which shall advise the Commission on policy matters and on any other matter relating to quality and continuity of service provided by licensees.

(2) the Electricity Advisory Committee shall consist of such number of persons including ex-officio Chairperson and Members, being not less than fifteen and not more than twenty one, as the Commission may decide. The Commission shall appoint the members on the said Committee in such manner that there shall be at least one members representing each of the interests of licensees, generating companies operating in the State, commerce, industry, transport, agriculture, labour employed in the electricity supply industry and consumers of electricity.

(3) The Chairperson and the other Members of the Commission shall respectively be ex-officio Chairperson and other Members of the Electricity Adviso

S.30 Power of commission to make regulation

(1) The Commission may, in consultation with the licensee and the Electricity Advisory Committee and any other person as it thinks fit, make regulations which may provide for all or any of the following matters, namely, -
     (a) The circumstances in which licences are to inform customers of their rights ;
     (b) standards of performance in relation to any duty arising out of the rights referred to in clause (a) ; and
     (c) the circumstances in which the licensees are to be exempted from any requirements of the regulations; and may make different provisions for different licensees.

(2) Nothing in this Act shall affect the rights and privileges of the consumers under any other law for the time being in force.

S.31 Electricity supply and overall performance standards

The Commission may, form time to time, in consultation with the licensees, the Electricity Advisory Committee and any other persons as it thinks fit :
     (a) determine such standards of overall performance in respect of electricity supply services and promotion of the efficient use of electricity by consumers as in its opinion are economical and ought to be achieved by such licensees ad different standards may be determined for different licensees ; and
     (b) publish the standards so determined in such form and in such manner as the Commission may consider proper.

S.32 Information with respect to levels of performance

(1) On or before such date in each year as may be specified by the Commission, every licences shall furnish to the Commission the information in respect of the following, namely:
     (a) the number of cases in which a penalty was imposed and the amount of the penalty ; and
     (b) the level of performance achieved by the licensee for each standard determined under section 31.

(2) the Commission shall, at least once in every year, publish for general information the information received by it under sub-section (1) in at least two daily newspaper widely circulating in the area of supply of the licensees.

S.33 Restriction on disclosure of information

(1) Save as otherwise provided in this Act, no unpublished information in respect of any person or business which, has been furnished to or obtained by the Commission under this Act shall be disclosed by the Commission, without the consent of the concerned person or the person incharge of the business :

Provided that such information may be is closed to be Central Government, the State Government, Accountant General of the State or a person who requires it in connection with the discharge of his functions under the law relating to insolvency or in connection with the investigation of any criminal offence or for the purposes of any civil or criminal proceedings.

(2) the restriction contained in sub-section (1) shall not apply to the information relating to tariff.

S.34 Arbitration

(1) Notwithstanding anything contained in the Arbitration and Conciliation Act, 1996, any dispute or differences arising between licensees or in respect of matters specified in sub-section (1) of section 30, shall be referred to the Commission for arbitration. The Commission may proceed to act as arbitrator or nominate an arbitrator to adjudicate ad settle the dispute. The arbitrator shall follow such procedure as may be in accordance with the principles of natural justice.

(2) Where the award is made by an arbitrator nominated by the Commission it shall be filed before the Commission and the Commission may make an order to,
     (a) confirm and enforce the award ;
     (b) set aside or modify the award ; or
     (c) remit the award for reconsideration by the arbitrator.
(3) An award made under sub-section (1) or an order made under sub-section (2) by the Commission involving a valuation of over 50,000 rupees shall be appealable under this Act.

(4) An awa

S.35 Appeals from the orders of the Electrical Inspector

Notwithstanding anything contained in the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948, or any rules made thereunder an appeal shall lie from the decision of an Electrical Inspector, other than an Inspector of the Central Government or the Central Electricity Authority, within a period of thirty days from the date of communication of the order appealed from to the Commission.

S.36 Appeals from the orders of the Commission

Any person aggrieved by an award or order of the Commission under this Act (other than an award or order under section 34 involving a valuation of up to 50,000 rupees only) may, within sixty days from the date of communication to him of the order of the Commission, prefer an appeal to the High Court : Provided that the High Court may, if it is satisfied that appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be preferred within a further period not exceeding sixty days.

S.37 Offences and Penalties

(1) Whoever,
     (a) in contravention of the provisions of this Act, the rules or the regulation made under this Act or of the provisions of the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 or the rules made thereunder engages in the business of transmission or supply of electricity, or
     (b) refuses or fails without reasonable cause to comply with or give under this Act, effect to any direction, order or requirement made shall be guilty of an offence under this Act.

(2) Any person guilty of offence under clause (a) of sub-section (1), shall be punished with imprisonment which may extend to six months or with fine which may extend to rupees five lakh, or with both, and a further penalty which may extend to rupees twenty thousand for each day after the first during which the offence continues.

(3) Any person guilty of an offence under clause (b) of subsection (1) shall be punished with imprisonment which may extend to six months or with f

S.38 Offences by Companies

(1) If the person committing an offence under this Act is a company, the company as well as every person in charge of and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly : Provided that no such person shall be liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company, and it is proved that the offence has been committed with the consent or connivance of or that the commission of the offence is attributable to any neglect on the part of any director, manager, secretary or other officer of the company such director, manager, secretary or other officer shall also be deemed to be guilt

S.39 Composition of offences

(1) The Commission may, for reasons to be recorded in writing, accept from any person who has committed or is reasonably suspected of having committed an offence punishable under this Act, a sum of money not exceeding rupees five lakh by way of composition fee and compound the offence.

(2) On the composition of any offence under sub-section (1) no proceed shall be taken or continued against the person concerned in respect of such offence, a if any proceedings in respect of that offence have already been instituted against him any court, the composition shall have the effect of his acquittal.

S.40 Cognizance of offence

(1) No court shall take cognizance of any offence under this Act except on a complaint in writing of an officer of the Commission authorized in this behalf by the Commission.

(2) An offence under this Act shall be triable by a court not lower in range than that of the Chief Judicial Magistrate or Additional Chief Judicial Magistrate having jurisdiction.

S.41 Penalties and proceedings not to prejudice other actions

All proceedings and actions against a person under this Act shall be in addition to, and not in derogation of, any proceeding or action under any other law for the time being in force.

S.42 Grant by the State Government

(1) The State Government shall after due appropriation made by the State Legislature by law in this behalf, pay to the Commission by way of grants such sums of money as the State Government may think fit for being utilized for the purposes of this Act :

Provided that expenditure in respect of salaries and allowances of the Chairperson and other Members shall be charged on the Consolidated Fund of the State.

(2) The Commission may spend such sums as it thinks fit for performing the functions under this Act, and such sums shall be treated as expenditure payable out of the grants referred to in sub-section (1).

S.43 Accounts and Audit

(1) The Commission shall maintain accounts and other records and shall cause to be prepared an annual statement of accounts in such form as may be prescribed.

(2) The accounts of the Commission shall be audited by the Accountant General, Uttar Pradesh, or any officer authorized by him in this behalf.

(3) The copies of annual statement of accounts of the Commission together with the audit report thereon shall be forwarded to the State Government.

(4) A copy of the annual statement of accounts of the Commission together with the audit report thereon received by the State Government under sub-section (3) shall be laid before each House of the State Legislature.

S.44 Annual Report of the Commission

(1) The Commission shall prepare in such form and at such time, for each financial year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year and copies thereof shall be forwarded to the State Government.

(2) The State Government shall cause the annual report to be laid, as soon as may be, after it is received, before each House of the State Legislature.

S.45 Amount recoverable as Land Revenue Amount

Any amount payable under this Act, except an amount payable under Chapter X may, on certificate of the Secretary of the Commission, be recovered as arrears of land revenue.

S.46 Application of files and charges

The Commission while imposing any fine or charges under this Act may direct that the whole or any part thereof shall be applied in or towards payment of the cost of the proceedings to a party.

S.47 Protection of action taken in good faith

No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act or rules or regulations or orders made thereunder.

S.48 Bar of jurisdiction

No order or proceedings made under this Act shall be appealable except as provided in this Act and no civil court shall have jurisdiction in respect of any matter which the Commission or any other authority is empowered by or under this Act to decide.

S.49 Power to remove difficulties

(1) If any difficulty arises in giving effect to the provisions of this Act, by reasons of anything contained in this Act, or any other enactment for the time being in force, the State Government may as the occasion requires, by order direct that this Act shall, during a period not extending beyond twelve months after the date of such order have effect subject to such adaptions whether by way of modification, addition or omission, as it may deem to be necessary and expedient and any such order may be made with retrospective effect from any date not earlier than the commencement of this Act.

(2) No order under sub-section (1) shall be made after the expiration of a period of two years from the commencement of this Act.

(3) The provisions of sub-section (1) of section 23-A of the Uttar Pradesh General Clauses Act, 1904 shall apply to an order made order sub-section (1) as they apply in respect of rules made by the State Government under any Uttar Pradesh Act.

S.50 Proceedings before the Commission to be judicial proceedings

All proceedings before the Commission shall be deemed to be judicial proceedings within the meaning of sections 193, 219 and 228 of the Indian Penal Code and the Commission shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

S.51 Chairperson, Members and staff of the Commission to be public servants

The Chairperson, Member and other employees of the Commission shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

S.52 Power to make regulations

(1) The Commission may make regulation not inconsistent with this Act or the rules made thereunder for the efficient performance of its functions under this Act.

(2) In particular, and without prejudice to the generality of the provisions of sub-section (1), such regulations may provide for all or any of the following matters, namely :

     (a) the administration of the affairs of the Commission in the exercise of its functions ;
     (b) determination of the functions to be assigned to licensees and other persons involved in the generation, purchase, transmission, distribution or supply of electricity, the manner in which such functions shall be discharged and the procedures to be adopted and enforced in regard to the operation and maintenance of power system and electric supply lines ;
     (c) the procedure and the conditions for the grant of licences, the particulars and documents to be made available by the persons applying for licences, the standards and gene

S.53 Power to make rules

(1) The State Government may, by notification make rules for carrying out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the power contained in sub-section (1), such rules may provide for all or any of the following matters, namely :

     (a) the procedure to be adopted by the Selection Committee for selection and appointment of the Chairperson and the Members ;
     (b) the form and manner in which the accounts of the Commission shall be maintained ; and
     (c) any other matter which is required to be, or may be, prescribed by rules.

S.54 Effect of this Act on the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948

(1) Except as provided in section 55, the provisions of this Act, notwithstanding that the same are inconsistent with or contrary to the provisions of the Indian Electricity Act, 1910, or the Electricity (Supply) Act, 1948 shall prevail in the manner and to the extent provided in sub-section (3).

(2) Subject to sub-section (1), all matters in the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948, with which the Board has been concerned or dealing with, shall be subject to the following :

     (a) the Board shall cease to undertake the functions which are to be discharged by the Commission in terms of the provisions of this Act, or any rules or regulations made under the Act ;
     (b) upon the issue of notification in terms of section 23 of this Act, the Board shall cease to undertake such of the functions of the Board as are assigned under the notification to the companies or body corporate or persons or authority.

(3) Subject to sub-sectio

S.55 Savings

(1) Notwithstanding anything contained in this Act, the powers, rights and functions of the Regional Electricity Board, the Central Electricity Authority, the Central Government and authorities other than the State Electricity Board and the State Government under the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948, or rules made thereunder shall remain unaffected and shall continue to be in force.

(2) Nothing contained in this Act shall in relation to the inter State transmission of electricity apply to the Power Grid Corporation of India Limited or to licensees, generating companies, undertakings or other bodies owned or controlled by the Central Government.

(3) All actions taken by the State Government or the Commission under the Central Act prior to the commencement of this Act shall be valid and enforceable notwithstanding that they are inconsistent with or contrary to the provisions of this Act.

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