Section 149 of EA 2003, Electricity Act : Section 149: Offences By Companies

Explanation using Example

Imagine a scenario where a power distribution company is found to be illegally tapping electricity and selling it to consumers. This is a violation of the Electricity Act, 2003. As per Section 149:

• The CEO and the managers who are in charge of the company's operations at the time the offence was committed are presumed to be guilty along with the company.
• If the CEO can prove that he was unaware of the illegal activity and that he took all necessary steps to prevent such an offence, he may not be punished.
• If it is discovered that the illegal activity was carried out with the knowledge or negligence of any of the company's directors or officers, those individuals would also be held responsible and subject to legal action.

In this case, the company and its in-charge personnel could face legal proceedings and penalties unless they can demonstrate their innocence or due diligence in preventing the offence.