Karnataka HC sets Precedent on Penalties for Electricity Theft Under Electricity Act

LI Network

Published on: 13 August 2023 at 11:44 IST

The Karnataka High Court has established a significant precedent in cases of electricity theft involving a load of less than 10 kilowatts under section 135 of the Electricity Act, 2003.

The court ruled that for a first conviction, the penalty should be a minimum of three times the financial gain obtained from the theft.

This decision has led to the modification and enhancement of a fine imposed on an accused, raising it to Rs. 1,08,189.

Justice Shivashankar Amarannavar, presiding over the case, emphasized that the minimum sentence for electricity theft, in cases where the load is below 10 kilowatts, should be three times the financial gain derived from the theft. The accused in question had gained Rs. 36,063 through the illegal activity, leading to a minimum fine of Rs. 1,08,189.

The case revolved around an appeal filed by the State to revise and increase the sentence handed down by the Special Court.

The accused had been convicted under Sections 135 and 138 of the Electricity Act and was initially fined Rs. 10,000, along with an order to pay the back-billed amount of Rs. 36,063.

The State argued that the penalty for a first conviction under Section 135 should be no less than three times the financial gain resulting from the theft of electricity.

The Court determined that the financial gain from the electricity theft needed to be accurately calculated.

The back-billing amount of Rs. 36,063 was computed based on the average consumption and meter readings of the accused.

Considering this, the Court affirmed that the back-billing amount constituted a financial gain obtained by the accused through the act of electricity theft.

Consequently, the minimum fine for the respondent-accused was determined to be Rs. 1,08,189, in accordance with the three-fold criteria.

In light of this ruling, the Court allowed the appeal, modifying and increasing the fine, and directed the accused to deposit the specified amount within six months from the date of the judgment.

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