Draft Circular

Sub: - Formation of H. O. level Internal Review Committee for the cases

detected u/s 126 of the Electricity Act, 2003, involving assessment
amount more than Rs. 1 Cr

Ref.: Commercial Circular No. 46 and 200.

The guidelines regarding the procedure for cases under Section 126 i. e.
unauthorized use of electricity are already issued vide Commercial Circular No.
200 dated 05.07.2013.

However, it is observed that the cases where the Assessment amount

exceeds Rs. 1 Crs needs to be dealt with properly. The inappropriate dealing of
such cases regarding collection of data, preparation assessment, and serving of
provisional and final assessment bill leads to litigation. This results in delay in
decision of such cases, more chances of failure and results in the blockage of
MSEDCL’s revenue.

In order to resolve these issues the Competent Authority has directed to

form a high level Internal Review Committee at Corporate Office. This Review
Committee will comprise of following members

1. Director (V&S), as a Head of Committee

2. Executive Director (Commercial) as a Member
3. Chief Legal Advisor as a Member

The Review Committee will review all the cases of unauthorized use of
electricity u/s 126 of the Electricity Act, 2003 having provisional assessment
amount more than Rs. 1 Crs.

The designated assessing officer either shall issue provisional assessment

as hitherto ,however after issue of Provisional bill the copy of case papers will be
submitted to the above committee. This committee will check the collected data
and evidences, applicable tariff , authentic documents ,assessment period,
methodology of assessment and its correctness , the validity and applicability of
section of 126,review the case in line with the provisions of Regulations and
Electricity Act 2003 and issue suitable guidelines to the assessing officer for issue
of final assessment order if any. The due precaution shall be taken strictly for
time period regarding suitable guidelines if any ,so as to issue the final
assessment bill within stipulated time period as specified in the act.

After issue of final bill the copy of case papers will be again submitted to the
above committee. This committee will review the case.

Thee HO Internal Review Committee will review the following,

1. Final assessment order having amount more than 1 Crore on merit basis as

per the provisions of Electricity Act and regulation .

2. Analyse the order issued by the Appellate Authority under section 127 of

EA2003 and decide further suitable course of action thereof .

3. Engaging the legal Advocate/Solicitor firm for pleading on behalf of MSEDCL

before the court/judicial body.

4.The Review Committee decision will be appraised to the Competent Authority

every month and conveyed to field offices by the office of the Director (V & S).

The provision of Electricity Act 2003 and prevailing MERC Regulations will
be strictly followed while reviewing such Cases.

Chief Engineer (Commercial)

P-Com/Review Committee/ Date:

Draft submitted for approval please.

Chief Engineer (Commercial)

Chief Legal Advisor

Executive Director (Commercial)

Director (Operations)

Director (Finance)

Managing Director

F:\JERekha Kolhe\JE Rekha\Unauthorized Use Section 126\O.N. formation of committee_25.05.2015.docx

 Draft Circular

Sub: - Formation of H. O. level Internal Supervisory Committee for the cases

detected u/s 126 of the Electricity Act, 2003, involving assessment
amount more than Rs. 1 Cr

Ref.: Commercial Circular No. 46 and 200.

The guidelines regarding the procedure for cases under Section 126 i. e.
unauthorized use of electricity are already issued vide Commercial Circular No.
200 dated 05.07.2013.

The inappropriate dealing of cases regarding collection of data,

preparation assessment, and serving of provisional and final assessment bill
leads to litigation. This results in delay in decision of such cases, more chances
of failure and results in the blockage of MSEDCL’s revenue.

In order to resolve these issues the Competent Authority has directed to

form a Internal Supervisory Committee at Corporate Office for the cases where
the Assessment amount exceeds Rs. 1 Crs . This Internal Supervisory
Committee will comprise of following members

4. Director (V&S), as a Head of Committee

5. Executive Director (Commercial) as a Member
6. Chief Legal Advisor as a Member

The Internal Supervisory Committee will review all the cases of

unauthorized use of electricity u/s 126 of the Electricity Act, 2003 having
provisional assessment amount more than Rs. 1 Crs.

The designated assessing officer either shall issue provisional assessment

as hitherto ,however after issue of Provisional bill the copy of case papers will be
submitted to the above committee. This committee will check the collected data
and evidences, applicable tariff , authentic documents ,assessment period,
methodology of assessment and its correctness , the validity and applicability of
section of 126,review the case in line with the provisions of Regulations and
Electricity Act 2003 and issue suitable guidelines to the assessing officer for issue
of final assessment order if any. The due precaution shall be taken strictly for
time period regarding suitable guidelines if any ,so as to issue the final
assessment bill within stipulated time period as specified in the act.

After issue of final bill the copy of case papers will be again submitted to the
above committee. This committee will review the case.

The Internal Supervisory Committee will review the following,

1. Final assessment order having amount more than 1 Crore on merit basis as

per the provisions of Electricity Act and regulation .

2. Analyse the order issued by the Appellate Authority under section 127 of

EA2003 and decide further suitable course of action thereof .

3. Engaging the legal Advocate/Solicitor firm for pleading on behalf of MSEDCL

before the court/judicial body.

4.The Internal Supervisory Committee decision will be appraised to the

Competent Authority .

every month and conveyed to field offices by the office of the Director (V & S).

The provision of Electricity Act 2003 and prevailing MERC Regulations will
be strictly followed while reviewing such Cases.

Chief Engineer (Commercial)

P-Com/Review Committee/ Date:

Draft submitted for approval please.

Chief Engineer (Commercial)

Chief Legal Advisor

Executive Director (Commercial)

Director (Operations)

Director (Finance)

Managing Director

F:\JERekha Kolhe\JE Rekha\Unauthorized Use Section 126\O.N. formation of committee_25.05.2015.docx

 Draft Circular

Sub: - Formation of H. O. level Internal Supervisory Committee for the cases

detected u/s 126 of the Electricity Act, 2003, involving assessment
amount more than Rs. 1 Cr

Ref.: Commercial Circular No. 46 and 200.

The guidelines regarding the procedure for cases under Section 126 i. e.
unauthorized use of electricity are already issued vide Commercial Circular No.
200 dated 05.07.2013.

The inappropriate dealing of the cases regarding collection of data,

preparation assessment, and serving of provisional and final assessment bill
leads to litigation. This results in delay in decision of such cases, more chances
of failure and results in the blockage of MSEDCL’s revenue.

In order to resolve these issues the Competent Authority has directed to

form a Internal Supervisory Committee at Corporate Office for the cases where
the Assessment amount exceeds Rs. 1 Crs . This Internal Supervisory
Committee will comprise of following members

1. Director (V&S), as a Head of Committee

2. Executive Director (Commercial) as a Member
3. Chief Legal Advisor as a Member

The Internal Supervisory Committee will review all the cases of

unauthorized use of electricity u/s 126 of the Electricity Act, 2003 having
provisional assessment amount more than Rs. 1 Crs.

After issue of final bill the copy of case papers will be submitted to the
above committee. This committee will review the case.

The Internal Supervisory Committee will review the following,

1. Final assessment order having amount more than 1 Crore on merit basis as

per the provisions of Electricity Act and regulation .

2. Analyse the order issued by the Appellate Authority under section 127 of

EA2003 and decide further suitable course of action thereof .

3. Engaging the legal Advocate/Solicitor firm for pleading on behalf of MSEDCL

before the court/judicial body.

4.The Internal Supervisory Committee decision will be appraised to the

Competent Authority .
 every month and conveyed to field offices by the office of the Director (V & S).

The provision of Electricity Act 2003 and prevailing MERC Regulations will
be strictly followed while reviewing such Cases.

Chief Engineer (Commercial)

P-Com/Review Committee/ Date:

Draft submitted for approval please.

Chief Engineer (Commercial)

Chief Legal Advisor

Executive Director (Commercial)

Director (Operations)

Director (Finance)

Managing Director