Bare Acts

CHAPTER II CENTRAL ELECTRICITY REGULATORY COMMISSION


3. ESTABLISMMNT AND INCORPORATION OF CENTRAL COMMISSION.
-

(l) The Central Government, shall, within three months from the date
of the commencement of this Act by notification in the Official
Gazette, establish a body to be known as the Central Electricity
Regulatory Commission to exercise the powers conferred on, and
the functions assigned to, it under this Act.

(2) The Central Commission shall be a body corporate by the name
aforesaid, having perpetual succession and a common seal with
power to acquire, hold and dispose of property, both movable and
immovable, and to contract and shall, by the said name, sue or be
sued.

(3) The head office of the Central Commission shall be at such place
as the Central Government may, by notification in the Official
Gazette, specify.

(4) The Central Commission shall consist of the following Members,
namely: -

(a) A Chairperson and three other Members;

(b) The Chairman of the Central Electricity Authority appointed
under sub-section (3) of Sec. 3 of the Electricity (Supply)
Act, 1948 (54 of 1948), who shall be the Member, ex-offtcio.

(5) The Chairperson and the other Members of the Central
Commission shall be appointed by the Central Government on the
recommendation of the Selection Committee referred to in Sec. 5:

Provided that nothing contained in this sub-section shall apply to
the appointment of a person as the Chairperson, where such
person is or has been a Judge of the, Supreme Court or the Chief
Justice of a High Court.

4. QUALIFICATION FOR APPOINTMENT OF CHAIRPERSON AND
OTHER MEMBERS OF THE CENTRAL COMIMSSION. -

(1) The Chairperson and the Members of the Central Commission shall
be persons having adequate knowledge, experience or shown
capacity in dealing with problems relating to engineering, law,
economics, commerce, finance or management and shall be
appointed in the following manner, namely: -

(a) One person having qualification and experience in the field
of engineering with specialisation in generation, transmission
or distribution of electricity;

(b) One person having qualification and experience in the field
of finance; and

(c) Two persons having qualification and experience in the field
of economics, commerce, law or management

Provided that not more than one Member shall be appointed
under the same category under Cl. (c).

(2) Notwithstanding anything contained in sub-section (1), the Central
Government may appoint any person as the Chairperson from
amongst persons who is or has been a Judge of the Supreme
Court or the Chief Justice of a High Court:

Provided that no appointment under this sub-section shall be made
except after consultation with the Chief Justice of India.

(3) The Chairperson or any other Member of the Central Commission
shall not hold any other office.

(4) The Chairperson shall be the Chief Executive of the Central
Commission.

5. CONSTITUTION OF SELECTION COMMITTEE TO RECOMMEND
MEMBERS. -

(1) The Central Government shall, for the purpose of sub-section (5) of
Sec. 3, constitute a Selection Committee consisting of-

(a) Member of the Planning Commission in charge of the energy
section

--
Chairperson;

(b) Secretary-in-charge of the Ministry of the Central
Government dealing with the Department of Le al Affairs

--Member;


(c) Chairman of the Public Enterprises Selection Board

-Member;

(d) A person to be nominated by the Central Government in
accordance with sub-section (2)
-Member;

(e) A person to be nominated by the Central Government in
accordance with sub-section (3)
--Member;

(f) Secretary-in-charge of the Ministry of the Central
Government dealing with Power;
-Member.

(2) For the purposes of Cl. (d) of subsection (1), the Central
Government shall nominate from amongst persons holding the post
of Chairman or Managing Director, by whatever name called, of any
public financial institution specified in Sec. 4-A of the Companies
Act, 1956 (I of 1956).

(3) For the purposes of Cl. (e) of sub-section (1), the Central
Government shall nominate from amongst persons holding the post
of Director or the head of the institution, by whatever name called,
of any research, technical or management institution notified by the
Central Government in the Official Gazette for this purpose.

(4) Secretary-in-charge of the Ministry of the Central Government
dealing with Power shall be Conveners of the Selection Committee.

(5) The Central Government shall within one month from the date of
occurrence of any vacancy by reason of death, resignation or
removal of the Chairperson or a Member and six months before the
superannuation or end of tenure of any Chairperson or Member,
make a reference to the Selection Committee for filling up of the
vacancy.

(6) The Selection Committee shall finalise the selection of the
Chairperson and Members within one month from the date on
which the reference is made to it.

(7) The Selection Committee shall recommend a panel of two names
for every vacancy referred to it.

(8) Before recommending arty person for appointment as a
Chairperson or other Member of the Central Commission, the
Selection Committee shall satisfy itself that such person does not
have any financial or other interest, which is likely to affect
prejudicially his functions as a Member.

(9) No appointment of the Chairperson or other Member shall be
invalid merely by reason of any vacancy in the Selection Committee

6. TERM OF OFFICE, SALARY AND ALLOWANCES AND OTHER
CONDITIONS OF SERVICE OF CHAIRPERSON AND MEMBERS. -

(l) The Chairperson or other Member shall hold office as such for a
term of five years from the date on which he enters upon his office,
but shall not be eligible for re-appointment:

Provided that no Chairperson or other Member shall hold office as
such after he has attained, -

(a) In the case of the Chairperson, the age of sixty-five years,
and

(b) In the case of any other Member, the age of sixty-two years.

(2) The salary and allowances payable to and the other terms and
conditions of service of the Chairperson and other Members shall
be such as may be prescribed.

(3) The salary, allowances and other conditions of service of the
Chairperson and the Members shall not be varied to their
disadvantage after appointment.

(4) The Chairperson and every Member shall before entering upon his
office, make and subscribe to, an oath of office and of secrecy in
such form and in such manner and before such authority as may be
prescribed.

(5) Notwithstanding anything contained in sub-section (1), Chairperson
or any Member may-

(a) Relinquish his office by giving in writing to the President
notice of not less than three months; or

(b) Be removed from his office in accordance with the provisions
of Sec. 7.

(6) The Chairperson or any Member ceasing to hold office as such
shall-

(a) Be ineligible for further employment under the Central
Government or any State Government for a period of two
years from the date he ceased to hold such office;

(b) Not accept any commercial employment for a period of two
years from the date he ceased to hold such office;

(c) Not represent any person before the Central Commission or
a State Commission in any manner.

Explanation-For the purposes of this sub-section, -

(i) “Employment under the Central Government or under
the State Government” includes employment under
any local or other authority within the territory of India
or under the control of the Central Government or
State Government or under any corporation or society
owned or controlled by the Government;

(ii) “Commercial employment” means employment in any
capacity under, or agency of, a person engaged in
trading, commercial, industrial or financial business in
the electricity industry and includes also a director of
a company or partner of a firm and it also includes
setting up practice either independently or as partner
of a firm or as an adviser or a consultant.

7. REMOVAL OF MEMBERS. –

(1) Subject to the provisions of sub- section (3), any Member of the
Central Commission shall only be removed from his office by order
of the President on the ground of proved misbehaviour after the
Supreme Court, on reference being made to it by the President,
has, on an inquiry, held in accordance with the procedure
prescribed in that behalf by the Supreme Court, reported that the
Member, ought on any such ground to be removed.

(2) The President may suspend any Member of the Central
Commission in respect of whom a reference has been made to the
Supreme Court under sub-section (1) until the President has
passed an order on receipt of the report of the Supreme Court.

(3) Notwithstanding anything contained in sub-section (1), the
President may by order remove from office the Chairperson or any
other Member, if the Chairperson or such other Member, as the
case may be, -

(a) Has been adjudged an insolvent; or

(b) Has been convicted of an offence which, in the opinion of the
Central Government, involves moral turpitude; or

(c) Has become physically or mentally incapable of acting as a
Member; or

(d) Has acquired such financial or other interest as is likely to
affect prejudicially his functions as a Member; or

(e) Has so abused his position as to render his continuance in
office prejudicial to the public interest.

(4) Notwithstanding anything contained in sub-section (3), no Member
shall be removed from his office on the ground specified in Cl. (d)
or Cl. (e) of that sub-section unless the Supreme Court, on a
reference being made to it in this behalf by the President, has, on
an enquiry, held by it in accordance with such procedure as
prescribed in this behalf by the Supreme Court, reported that the
Member ought on such ground or grounds to be removed.

8. OFFICERS OF THE CENTRAL COMMSSION AND OTHER STAFF. -

(1) The Central Commission may appoint a Secretary to exercise and
perform under the control of the Chairperson such duties and
powers as may be specified by regulations made by the Central
Commission.

(2) The Central Commission may, with the approval of the Central
Government, determine the number, nature and categories of other
officers and employees required to assist the Central Commission
in the discharge of its functions.

(3) The salaries and allowances payable to and other conditions of
service of the Secretary, officers and other employees shall be
such as may be determined with the approval of the Central
Government by regulations.

(4) The Central Commission may appoint consultants required to assist
the Central Commission in the discharge of its functions on terms
and conditions as may be determined by regulations made by the
Central Commission.

9. PROCEEDINGS OF THE CENTRAL COMMISSION. -

(1) The Central Commission shall meet at the head office or any of its
offices at such times as the Chairperson may direct, and shall
observe such rules of procedure in regard to the transaction of
business at its meetings (including the quorum at its meetings) as
may be determined by regulations.

(2) The Chairperson or, if he is unable to attend a meeting of the
Central Commission, any other Member nominated by the
Chairperson in this behalf and, in the absence of such nomination
or where there is no Chairperson, any Member chosen by the
Members present from among themselves, shall preside at the
meeting.

(3) All questions which come up before any meeting of the Central
Commission shall be decided by a majority of votes of the Members
(including the Member ex-offtcio) present and voting, and in the
event of an equality of votes, the Chairperson or the person
presiding shall have the right to exercise a second or casting vote.

(4) Save as otherwise provided in sub-section (3), every Member of the
Board shall have one vote.

(5) All orders and decisions of the Central Commission shall be
authenticated by the Secretary or any other officer of the Central
Commission duly authorised by the Chairperson in this behalf.

10. VACANCIES ETC., NOT TO INAVALIDATE, THE PROCEEDINGS OF
CENTRAL COMMISSION.-No act or proceedings of the Central
Commission shall be questioned or shall be invalidated merely on the
ground of existence of any vacancy or defect in the constitution of the
Central Commission.

11. EXPENSES OF CENTRAL COMMISSION TO BE CHARGED UPON
CONSOLIDATED FUND OF INDIA. -The expenses of the Central
Commission including all salaries and allowances payable to, or in respect
of, the Chairperson and the Members of the Central Commission shall be
charged upon the Consolidated Fund of India.

12. POWERS OF THE CENTRAL COMMISSION. -The Central Commission
shall, for the purposes of any inquiry or proceedings under this Act have
the powers as are vested in a Civil Court under the Code of Civil
Procedure, 1908 (5 of 1908) in respect of the following matters, namely, -

(a) The summoning and enforcing of attendance of any witness and
examining him on oath;

(b) The discovery and production of any document or other material
object producible as evidence;

(c) The reception of evidence on affidavits;

(d) The requisition of any public record;

(e) The issue of commission for examination of witnesses;

(f) Review its decisions, directions and orders;

(g) Any other matter, which may be prescribed. 

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