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New Delhi 24 January 2011

Press Release


Power Theft: CEO gets 2 years Jail, fined Rs 38 lakh



In a significant judgment, the CEO of a mid-sized clothes manufacturing unit has been convicted for power-theft u/s 135 of the Indian Electricity Act 2003 by the Special Court of Electricity, Saket, and sentenced to a two-year jail term. A fine of Rs 23.29 lakh and a penalty of Rs 15.53 lakh have also imposed on the accused. The Hon’ble Court granted bail to the convict for a period of 30 days, for enabling him to “present appeal before the appellate court”, by furnishing a personal bond of Rs 1 lakh and surety of the like amount.


The accused has been ordered to pay the fine within one-month and in event of a default, will further undergo simple imprisonment for six months.


The Special Court passed the judgment after hearing lengthy arguments, cross-examining of witnesses and going through the evidence presented by both the Complainant (BRPL) and Accused. One of the main arguments presented by the accused was that he was drawing electricity from a generator – an argument, which he could not prove.


The order states, “…the accused Mukesh Jain – CEO, Bahubali Marketing Pvt Ltd and Bahubali Marketing Pvt Ltd have miserably failed to prove that they were not using electricity directly from the BSES LV Mains”


The Order further states, “….the circumstances and evidence proved by the complainant company established the involvement of the accused in the direct theft of electricity. The complainant has proved its case against the accused beyond reasonable doubt…”


Sentence


“….the convict has been sentenced (to) undergo imprisonment for a period of two years and his civil liability u/s 154 (5) and (6) of the Electricity Act has been determined separately.


“…as the convict has failed to discharge his onus that he was not using the energy for preceding 12 months, Therefore, the convict is directed to pay a sum of Rs 15,53,932.- has his civil liability….”.


“….calculating the fine on the said basis, the convict is directed to pay a fine of Rs 23,29,548/- for the offence u/s 135 of the Electricity Act, 2003 within one month from today and in default of payment of fine, the convict will undergo simple imprisonment for six months”


The Case


A BSES Rajdhani Power Limited (BRPL) inspection at F -1, Jawahar Park, Khanpur in October 2005 had unearthed power theft of over 50 KW. The said premises (Basement, First and Second Floors) – being used by the CEO of Bahubali Marketing Pvt Ltd – was found to be stealing electricity by hooking from the nearby BSES LV Mains. The stolen electricity was being used for manufacturing and stitching of clothes in the unit employing 40-50 people. No meter was found on the premises. A penalty of Rs 19.4 lakh was imposed on the accused.

On a complaint by BRPL, the case was initially heard by the Predecessor Court (Trial Court) in December 2005. Though the Court had granted bail to the accused on furnishing a personal bond of Rs 25,000, along with the surety of the like amount, the accused was also asked to pay Rs 10 lakh to the Complainant.

The accused had appealed the order of the Sessions Court before the High Court in 2005, which stayed the payment of penalty of Rs 10 lakh and granted bail to the accused on personal bond of Rs 1 lakh and surety of the like amount.

After taking cognizance of the offence, the accused was summoned by the Predecessor (Trial) Court and released on bail as per the orders of the Hon’ble High Court of Delhi. A notice u/s 351 Cr PC was framed against the accused by the Predecessor Court, to which the former had pleaded not guilty and claimed trial.

According to a BSES spokesperson, “During the last one year, the Special Court’s of Electricity at Dwarka and Saket have convicted more than 100 people for theft of electricity”

BRPL and BYPL, Delhi’s premier power distribution companies are committed to ensuring quality and reliable electricity supply to all their consumers.