law: Electricity Act, 2003
  24. Suspension of
  
  distribution licence and sale of utility.-
  1.     
  
    If
  
  at any time the Appropriate Commission is of the opinion that a distribution
  
  licensee--
  a.      has persistently
  
  failed to maintain uninterrupted supply of electricity conforming to standards regarding
  
  quality of electricity to the consumers; or
  b.     is unable to
  
  discharge the functions or perform the duties imposed on it by or under the
  
  provisions of this Act; or
  c.      has persistently
  
  defaulted in complying with any direction given by the Appropriate Commission
  
  under this Act; or
  d.     has broken the terms
  
  and conditions of licence, and circumstances exist which render it necessary
  
  for it in public interest so to do, the Appropriate Commission may, for reasons
  
  to be recorded in writing, suspend, for a period not exceeding one year, the
  
  licence of the distribution licensee and appoint an Administrator to discharge
  
  the functions of the distribution licensee in accordance with the terms and
  
  conditions of the licence:
  Provided that before
  
  suspending a licence under this section, the Appropriate Commission shall give
  
  a reasonable opportunity to the distribution licensee to make representations
  
  against the proposed suspension of licence and shall consider the
  
  representations, if any, of the distribution licensee.
  1.     
  
  
  2.     
  
    Upon
  
  suspension of licence under sub-section (1), the utilities of the distribution
  
  licensee shall vest in the Administrator for a period not exceeding one year or
  
  up to the date on which such utility is sold in accordance with the provisions
  
  contained in section 20, whichever is later.
  3.     
  
    The
  
  Appropriate Commission shall, within one year of appointment of the
  
  Administrator under sub-section (1), either revoke the licence in accordance
  
  with the provisions contained in section 19 or revoke suspension of the licence
  
  and restore the utility to the distribution licensee whose licence had been
  
  suspended, as the case may be.
  4.     
  
    In
  
  a case where the Appropriate Commission revokes the licence under subsection
  
  (3), the utility of the distribution licensee shall be sold within a period of
  
  one year from the date of revocation of the licence in accordance with the
  
  provisions of section 20 and the price after deducting the administrative and
  
  other expenses on sale of utilities be remitted to the distribution licensee.