law: Electricity Act, 2003
  128. Investigation of
  
  certain matters.-
  1.     
  
    The
  
  Appropriate Commission may, on being satisfied that a licensee has failed to
  
  comply with any of the conditions of licence or a generating company or a
  
  licensee has failed to comply with any of the provisions of this Act or the
  
  rules or regulations made thereunder, at any time, by order in writing, direct
  
  any person (hereafter in this section referred to as "Investigating Authority")
  
  specified in the order to investigate the affairs of any generating company or
  
  licensee and to report to that Commission on any investigation made by such
  
  Investigating Authority:
  Provided
  
  that  
  
  the Investigating Authority may, wherever necessary, employ any auditor or any
  
  other person for the purpose of assisting him in any investigation under this
  
  section.
  2.     
  
    Notwithstanding
  
  anything to the contrary contained in section 235 of the Companies Act, 1956 (1
  
  of 1956), the Investigating Authority may, at any time, and shall, or being
  
  directed so to do by the Appropriate Commission, cause an inspection to be
  
  made, by one or more of its officers, of any licensee or generating company and
  
  his books of account; and the Investigating Authority shall supply to the
  
  licensee or generating company, as the case may be, a copy of his report on
  
  such inspection.
  3.     
  
    It
  
  shall be the duty of every manager, managing director or other officer of the
  
  licensee or generating company, as the case may be, to produce before the
  
  Investigating Authority directed to make the investigation under sub-section
  
  (1), or inspection under sub-section (2), all such books of account, registers
  
  and other documents in his custody or power and to furnish him with any
  
  statement and information relating to the affairs of the licensee or generating
  
  company, as the case may be, as the said Investigating Authority may require of
  
  him within such time as the said Investigating Authority may specify.
  4.     
  
    Any
  
  Investigating Authority, directed to make an investigation under sub-section
  
  (1), or inspection under sub-section (2), may examine on oath any manager,
  
  managing director or other officer of the licensee or generating company, as
  
  the case may be, in relation to his business and may administer oaths
  
  accordingly.
  5.     
  
    The
  
  Investigating Authority, shall, if it has been directed by the Appropriate
  
  Commission to cause an inspection to be made, and may, in any other case,
  
  report to the Appropriate Commission on any inspection made under this section.
  6.     
  
    On
  
  receipt of any report under sub-section (1) or sub-section (5), the Appropriate
  
  Commission may, after giving such opportunity to the licensee or generating
  
  company, as the case may be, to make a representation in connection with the
  
  report as in the opinion of the Appropriate Commission seems reasonable, by
  
  order in writing--
  a.      require the licensee
  
  or the generating company to take such action in respect of any matter arising
  
  out of the report as the Appropriate Commission may think fit; or
  b.     cancel the licence;
  
  or
  c.      direct the generating
  
  company to cease to carry on the business of generation of electricity.
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  7.     
  
    The
  
  Appropriate Commission may, after giving reasonable notice to the licensee or
  
  the generating company, as the case may be, publish the report submitted by the
  
  Investigating Authority under sub-section (5) or such portion thereof as may
  
  appear to it to be necessary.
  8.     
  
    The
  
  Appropriate Commission may specify the minimum information to be maintained by
  
  the licensee or the generating company in their books, the manner in which such
  
  information shall be maintained, the checks and other verifications to be
  
  adopted by licensee or the generating company in that connection and all other
  
  matters incidental thereto as are, in its opinion, necessary to enable the
  
  Investigating Authority to discharge satisfactorily its functions under this
  
  section.
  Explanation:  For the purposes of
  
  this section, the expression "licensee or the generating company"
  
  shall include in the case of a licensee incorporated in India--
  a.      all its subsidiaries
  
  formed for the purpose of carrying on the business of generation or
  
  transmission or distribution or trading of electricity exclusively outside
  
  India; and
  b.     all its branches
  
  whether situated in India or outside India.
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  9.     
  
    All
  
  expenses of, and incidental to, any investigation made under this section shall
  
  be defrayed by the licensee or the generating company, as the case may be, and
  
  shall have priority over the debts due from the licensee or the generating
  
  company and shall be recoverable as an arrear of land revenue.