Legal Empowerment of distribution utilities to …...BSES Yamuna Power Limited, BSES Rajdhani Power Ltd. and North Delhi Power Limited, as ‘Authorised Officers’for the purpose

Legal Empowerment of

distribution utilities to control

power theft

Avinash Nair (HOD-EAC)

08.09.2017

Acknowledgement

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Section-135 (THEFT of Electricity)

Section-153 (Constitution of Special Courts)

Section-154 (Procedure and Power of Special Court)

Section-163 (Power for licensee to Enter Premises)

Judgments on issue of Theft of Electricity

Major Changes in new DERC Supply Code-2017


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THEFT OF ENERGY:

Section 135(1) of Electricity Act, 2003 as amended by Electricity (amendment) Act, 2007, Theft of electricity is defined as, whoever dishonestly,

a) Taps:

- overhead

- underground

b) Tampers meter:

- usage of tampered meter

- current reversing transformer

- loop connection

- other device interferes with accurate/proper registration.

c) Other device/method result in a manner whereby:

- electricity is stolen

- damages/destroys an electric meter/ apparatus/equipment/wire/ cause

d) Uses electricity through a tampered meter

e) Uses electricity for purposes other than that which was authorized.


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Provisions of the Electricity Act 2003:

As per sec 135 of the above Act

1.Provisional assessment is made.

2.Consumer is advised to pay the same.

3.Consumer can pay the provisional assessment immediately underprotest and can seek restoration of supply.

4.Licensee on deposit/payment of the assessed amount restores thesupply

within 48hrs.

5.The occupant/any person on his behalf remain present during thesearch.

6.List of all things seized during the search should be prepared andissued to the occupant who shall sign the list.

7.No search/inspection and seizure of any domestic place or premisesshould be conducted between sunset and sunrise except in thepresence of an adult male member occupying such premises.

8.The provisions of the Code of Criminal Procedure 1973(2 of 1974)relating to search and seizure shall apply in this regard.

PROCEDURE FOR BOOKING A CASE FOR THEFT OF

ELECTRICITY

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Regulation 52: List of Authorized officers to be

published prominently in all district office and photo ID

card (clearly indicate that the officer is being authorized

officer as per Section 135 of EA) shall be issued to them.

Inspection can be done suo moto or on receipt of reliable

information.

The inspection team shall carry photo ID Card (to be

shown) and visiting cards to be handed over to the

consumer.

Report shall be prepared by authorized officers as per

format provided. Sufficient evidence has to be recorded.


ELECTRICITY

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No case for theft shall be booked only on account of

seals on the meter missing or tampered or breakage of

glass window, unless corroborated by consumption

pattern of consumer and such other evidence as may be

available.

Authorized officers

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As per the Electricity Act, 2003, the authorized officer is to be designated bythe State Government.

In pursuance to above, GoNCTD vide its notification dated 12.09.2007 hasdesignated technical officers of DISCOMs as the authorized officers underclause (a), (b), (c) of sub section (2) of Section 135 of the Electricity Act,2003 as under:-

1) The technical officials of the level of graduate engineers and working inthe post of officers and above, in the Departments dealing withdistribution (District/Zones), commercial and enforcement functions inBSES Yamuna Power Limited, BSES Rajdhani Power Ltd. and NorthDelhi Power Limited, as ‘Authorised Officers’ for the purpose of clause (a)of sub-section (2) of Section 135 of the said Act, in the respective areas ofthe said companies in the National Capital Territory of Delhi.

Any officer authorized in this behalf may -enter, inspect,break open and search any place or premises in which hehas reason to believe that electricity has been, is being, or islikely to be, used unauthorisedly;

Authorized officers

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2) The technical officials not below the rank of Asstt. Engineer/Asstt.

Manger and above working in the Departments dealing with distribution

(District/Zones), commercial and enforcement functions in BSES

Yamuna Power Limited, BSES Rajdhani Power Limited and North Delhi

Power Limited, as ‘Authorised Officers’ for the purpose of clauses (a)

and (b) of sub-section (2) of section 135 of the aforesaid Act, in the

respective areas of the said companies in the National Capital Territory

of Delhi.

Any officer authorized in this behalf may search, seize and remove

all such devices, instruments, wires and any other facilitator or

article which has been, is being, or is likely to be, used for

unauthorized use of electricity;

Authorized officers

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3) The technical officials not below the rank of Executive

Engineer/Manager and above working in the Departments dealing with

distribution (District/Zones), commercial and enforcement functions in

BSES Yamuna Power Limited, BSES Rajdhani Power Limited and

North Delhi Power Limited, as ‘Authorised Officers’ for the purpose of

clauses (a), (b) and (c) of sub-section (2) of Section 135 of the

aforesaid Act, in the respective areas of the said companies in the

National Capital Territory of Delhi.

Any officer authorized in this behalf may examine or seize any

books of account or documents which in his opinion shall be

useful for or relevant to, any proceedings in respect of the

offence under sub-section (1) and allow the person from whose

custody such books of account or documents are seized to

make copies thereof or take extracts therefrom in his presence.


ELECTRICITY (DT)

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If evidence establishes Direct Theft then disconnection

shall be effected and all material evidence shall be

seized.

Case shall be filed within 2 days of DOI.

Copy of filing shall be served upon on the consumer

(accused) under proper receipt within 2 days. The

assessment bill (12X2) shall be raised and served upon

the consumer under proper receipt.


ELECTRICITY (suspected theft)

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In case of suspected theft - old meter be removed

under a seizure memo and be sealed in presence of

consumer - supply shall be restored with a new meter

Old meter shall be tested in NABL accredited

laboratory (Notified by commission) and test report in

writing along with photographs/video graphs shall

constitute evidence.

The authorized officer shall record reasons to suspect

theft in his report.



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Report shall be signed by authorized officer and allmembers and has to be handed over to consumer at siteimmediately under proper receipt

In case of refusal IR be pasted at a conspicuous placein/outside the premises and photographed.Simultaneously, the report shall be sent to the consumerunder Registered Post.

In case CP for last one year is reasonably uniform andnot less than 75% of the assessed consumption - nofurther proceedings - communication of same toconsumer within 3 days - restoration through originalmeter.



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If on detail examination of evidence and CP if a prima-faciecase of dishonest abstraction of energy is made out thenlicensee shall within 7 days of inspection serve on theconsumer a 7 days show cause notice giving reasons and fulldetails and point, on which reply is to be submitted.

The notice shall clearly indicate the time, date, place,designation of the person to whom reply is to be addressedand submitted there to.

SCN not served even after 30 days from DOI- suspectedtheft shall be considered as dropped.

Theft will not only limited to interference with the meter butshall also include any mode causing interference with theaccuracy of reading e.g. remote control, high voltage injection,etc.



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Theft of electricity may be established by analysis of

metering data downloaded by a third party authorized

laboratory.

In case theft of energy is determined by way of meter

down load, the show cause notice will be sent to the

consumer/user.

PERSONAL HEARING IN CASE OF SUSPECTED THEFT

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After submission of reply - within 4 days personal hearingshall be arranged - if consumer fails to appear secondopportunity be given and if he fails again, he shall beproceeded ex-parte.

During PH every point submitted by consumer shall beconsidered and speaking order has to be passed within 3days whether theft is established or not. Speaking order shallcontain brief of inspection report, written and oral submissionof consumer and reason for acceptance or rejection of thesame.

If no theft established - restoration through original meter.

Where theft established assessment bill is to be raised on12X2 basis and the same be served upon the consumerunder proper receipt.

PERSONAL HEARING IN CASE OF SUSPECTED THEFT

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Payment by consumer shall be done within 7 days of

receipt of the bill – on consideration of financial position

last date of payment could be extended/installment could

be approved, and the same must be stated in the

speaking order.

DEFAULT IN PAYMENT OF ASSESSED AMOUNT OR

INSTALLMENTS THEREOF

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Regulation 54. In case of default in payment of the

assessed amount, the Licensee will, after giving a fifteen

days notice, in writing, file a case against the consumer in

the designated Special Court as per the provisions of

section 135 of the Act. Disconnection of supply,

however, can only be done after getting an order from

the Special Court.

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19

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Section-153 (Constitution of Special Courts)

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The State Government may, for the purposes of providing

speedy trial of offences referred to in sections 135 to 139,

by notification in the Official Gazette, constitute as many

Special Courts as may be necessary for such area or

areas.

A Special Court shall consist of a single Judge who shall be

appointed by the State Government with the concurrence

of the High Court.

Section-154 (Procedure and Power of Special Court)

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The Special Court may determine the civil liability against a

consumer or a person in terms of money for theft of energy

which shall not be less than an amount equivalent to two

times of the tariff rate applicable for a period of twelve

months preceding the date of detection of theft of energy or

the exact period of theft if determined which ever is less

and the amount of civil liability so determined shall be

recovered as if it were a decree of civil court.

Section-163 (Power for licensee to enter Premises)

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Power for licensee to enter premises and to remove fittings or other apparatusof

licensee.

(1) A licensee or any person duly authorized by a license may, at anyreasonable time, and on informing the occupier of his intention, enter anypremises to which electricity is, or has been, supplied by him, of any premisesor land, under, over, along, across, in or upon which the electric supply-lines orother works have been lawfully placed by him for the purpose of –

(a) inspecting, testing, repairing or altering the electric supply lines, meters,fittings, works and apparatus for the supply of electricity belonging to thelicensee; or

(b) ascertaining the amount of electricity supplied or the electrical quantitycontained in the supply; or

(c) removing where a supply of electricity is no longer required, or where thelicensee is authorized to take away and cut off such supply, any electricsupply-lines, meters, fittings, works or apparatus belonging to the licensee.

Section-163 (Power for licensee to enter Premises)

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(2) A licensee or any person authorized as aforesaid may also, in pursuance

of a special order in this behalf made by an Executive Magistrate and after

giving not less than twenty-four hours notice in writing to the occupier, -

(a) enter any premises or land referred to in sub-section (1) for any of the

purposes mentioned therein;

(b) enter any premises to which electricity is to be supplied by him, for the

purpose of examining and testing the electric wires fittings, works and

apparatus for the use of electricity belonging to the consumer.

(3) Where a consumer refuses to allow a licensee or any person authorized

as aforesaid to enter his premises or land in pursuance of the provisions of

sub-section (1) or, sub-section (2), when such licensee or person has so

entered, refuses to allow him to perform any act which he is authorized by

those subsections to perform, or fails to give reasonable facilities for such

entry or performance, the licensee may, after the expiry of twenty-four hours

from the service of a notice in writing on the consumer, cut off the supply to

the consumer for so long as such refusal or failure continues, but for no

longer.

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IMPORTANT JUDGEMENTS

JUDGMENT ISSUES INVOLVED/ DECIDED

JAGMODHAN MEHATAB

SING V/S M.S.E.B

Supreme court has passed several stringent

directions against theft of electricity; pursuant to

this judgment, amendments in Section 135 of EA

2003 was carried out.

MOHD. SALIM V/S STATE

(Delhi High Court)

Hon’ble High Court of Delhi held that monetary

condition may be imposed as condition precedent

for grant of bail

NDPL V/S PRABHAT

KUMAR

Hon’ble Special Court held that accused be

awarded simple imprisonment of 8 months and

Rs.1.50 Lakhs to be paid towards civil liability in a

case where theft of electricity was alleged and

assessment bill of Rs.1,64,379/-

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JHARKHAND STATE

ELECTRICITY BOARD VS

ANWAR ALI (National

Commission)

“Jurisdiction of Fora – Electricity dispute –

Electricity Act and Consumer Protection Act runs

parallel regarding limited purpose in respect of

arbitrary, illegal, unjustified action against rules and

regulations of electricity code-Jurisdiction of Fora

cannot be curtailed in absence of express

provisions

Consumer Fora Lacks jurisdiction once the case

becomes subjudice before Special Court.

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SUBHASH KAKKAR V/S

STATE

Hon’ble High Court of Delhi has held that user can

be summoned as additional accused

MUKESH RASTOGI V/S

NDPL

Lapses in retaining/producing the wires through

which electricity was stolen, cannot absolve the

accused, if the same is proved otherwise.

The theft of electricity cannot be termed as “non-

crime” for want of valid inspection i.e. inspection

not conducted/supervised by Authorized officer.

DVB V/S DEVINDER

SINGH

B.S.E.S V/S NEERAJ

KUMAR

CDRF/ State commission lacks jurisdiction to

entertain FAE/theft cases.

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BIMLA GUPTA & ANR V/S

STATE & ANR

Hon’ble High Court of Delhi upheld the discoms

power to lodge FIR

RAJINDER V/S BSES

RAJDHANI

Hon’ble High Court of Delhi held that there may

not any bar for filing the complaint subsequent to

lodging of FIR

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NDPL V/S PRABHAT

KUMAR

Hon’ble Special Court held that accused be

awarded simple imprisonment of 18 months and

Rs.1.50 Lakhs to be paid towards civil liability in a

case where theft of electricity was alleged and


NDPL V/S SUNIL Hon’ble Special Court held that accused be

awarded simple imprisonment of 2 years and Rs.3

Lakhs to be paid towards civil liability in a case

where theft of electricity was alleged and


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SOHAN LAL VS NDPL

113 (2004) DLT 547

No provision in central Enactment being Act,2003

in respect of assessment in case of theft:

Regulations 25 & 26 provide complete scheme:

Tariff schedule for 2003-2004 come into effect

from 4.7.2003 as made under regulations Formula

6 x 5 provided in the regulations themselves in

case of theft: This formula applicable in case of

theft, covered under section 135 of the E.Act:

Mere fact that section 135 of the Act also provides

certain consequences of prosecution cannot imply

more severe civil liability would not arise: for

certain consequences: Discom Assessment –theft

of electricity- Section 135, 126 -6x5 formula

applicable in the cases of theft

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Jai Dev Sharma Vs

BSES

140 (2007) DLT 111

Section 126,135- DAE- - Inspection report –

Challenge against – Inspection done by assessing

officer who was of rank and designation permitted

by Notification - It hardly matters if team that

carried out inspection comprised officer below

rank or even rank mentioned in notification – Mere

facts meter has been in place for 25 years does

not rule out possibility of it being tampered – on

inspection meter seals found tempered –

consumption pattern also supports same. Petition

Dismissed.

Major Changes in new DERC Supply Code-2017

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Regulation 64 (3) (Suspected Theft) – No provision of

Personal Hearing to the consumers.

Regulation 63 (4) – “ While making the assessment bill,

the Licensee shall give credit to the consumer for the

electricity units already paid by the consumer for the

period of the assessment bill. “

Recovery of Arrears 42 - Reflection of EAC bills as

arrear in the regular bill.

Thank You

Documents

Legal Empowerment of distribution utilities to …...BSES Yamuna Power Limited, BSES Rajdhani Power Ltd. and North Delhi Power Limited, as ‘Authorised Officers’for the purpose