law: Electricity Act, 2003
  19. Revocation of
  
  licence.-
  
  1.     
  
    If
  
  the Appropriate Commission, after making an enquiry, is satisfied that public
  
  interest so requires, it may revoke a licence in any of the following cases,
  
  namely:--
  a.      where the licensee,
  
  in the opinion of the Appropriate Commission, makes wilful and prolonged
  
  default in doing anything required of him by or under this Act or the rules or
  
  regulations made thereunder;
  b.     where the licensee
  
  breaks any of the terms or conditions of his licence the breach of which is
  
  expressly declared by such licence to render it liable to revocation;
  c.      where the licensee
  
  fails, within the period fixed in this behalf by his licence, or any longer
  
  period which the Appropriate Commission may have granted therefor--
                       
  
   i.        
  
    to
  
  show, to the satisfaction of the Appropriate Commission, that he is in a
  
  position fully and efficiently to discharge the duties and obligations imposed
  
  on him by his licence; or
                      
  
   ii.        
  
    to
  
  make the deposit or furnish the security, or pay the fees or other charges
  
  required by his licence;
  a.    
  
  
  b.    
  
  
  c.    
  
  
  d.     where in the opinion
  
  of the Appropriate Commission the financial position of the licensee is such
  
  that he is unable fully and efficiently to discharge the duties and obligations
  
  imposed on him by his licence.
  1.     
  
  
  2.     
  
    Where
  
  in its opinion the public interest so requires, the Appropriate Commission may,
  
  on application, or with the consent of the licensee, revoke his licence as to
  
  the whole or any part of his area of distribution or transmission or trading
  
  upon such terms and conditions as it thinks fit.
  3.     
  
    No
  
  licence shall be revoked under sub-section (1) unless the Appropriate
  
  Commission has given to the licensee not less than three months' notice, in
  
  writing, stating the grounds on which it is proposed to revoke the licence, and
  
  has considered any cause shown by the licensee within the period of that
  
  notice, against the proposed revocation.
  4.     
  
    The
  
  Appropriate Commission may, instead of revoking a licence under subsection (1),
  
  permit it to remain in force subject to such further terms and conditions as it
  
  thinks fit to impose, and any further terms and conditions so imposed shall be
  
  binding upon and be observed by the licensee and shall be of like force and
  
  effect as if they were contained in the licence.
  5.     
  
    Where
  
  the Commission revokes a licence under this section, it shall serve a notice of
  
  revocation upon the licensee and fix a date on which the revocation shall take
  
  effect.
  6.     
  
    Where
  
  the Appropriate Commission has given notice for revocation of licence under
  
  sub-section (5), without prejudice to any penalty which may be imposed or prosecution
  
  proceeding which may be initiated under this Act, the licensee may, after prior
  
  approval of that Commission, sell his utility to any person who is found
  
  eligible by that Commission for grant of licence.