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Electricity – Mahavirtaran Amnesty – Payment of 100% theft amount by auction purchaser

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On 12.5.2008, the petitioner had taken possession of the industrial unit at Tarapur Industrial Area in auction held under SARFAESI Act.

 However, the application of the petitioner for fresh electricity connection was not considered.  The petitioner filed writ petition. It was admitted and interim relief was granted for electricity connection subject to the deposit of unpaid dues of the premises.  This order does not deal with the issue of theft charges. However, the petitioner did not take benefit of the said interim order.

 In 2024, Amnesty scheme was launched to give fresh connection on payment of principal arrears. The petitioner made an application on 11.11.2024, However, by the Circular No.7 of 3.12.2024 the scheme was extended and provided additional condition for payment of 100% payment of theft amount by the permanently disconnected consumers.

 By the letter dated 6.12.2024 of the Maharashtra State Electricity Distribution Co. Ltd to the petitioners for Rs.2,07,24,237/- for electricity charges being categorised as theft case, for consideration of amnesty application dated 11.10.2024 under Mahavitaran Abhay Scheme, 2024.  The said amount was claimed on the basis of decree against the previous owner.

 Clause 12.5 of the Maharashtra Electricity Regulatory Commission (Electricity Supply Code and Standards of Performance of Distribution Licensees including Power Quality) Regulations, 2021, (earlier Regulation 10.5 of the Maharashtra Electricity Supply Code, 2005) provides that any charge of previous owner shall be a charge on the premises transferred to the new owner and same shall be recoverable from new owner.

 The subsequent purchaser of property on “as is where is basis” would become liable to discharge all the liabilities of the seller including electricity charges and also charges for electricity theft.

 The implication of the expression “as is where is basis” in auction notice is that every intending bidder is put on notice that the seller does not undertake responsibility in respect of the property offered for sale with regard to any liability for payment of the dues, like service charges, electricity dues for power connection and taxes of the local authorities.

 Judgment dated 6.6.2025 of the High Court of Bombay in Writ Petition No.2734 of 2025 of Aeon Creations Pvt Ltd and another   Vs.  The State of Maharashtra and others

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