The Indian Electricity Act, The Electricity Act 2003

1910
Provision Section 39 Section 135

Theft defined Theft of energy. – Whoever Whoever, dishonestly, -- (a) taps, makes or
dishonestly abstracts, consumes causes to be made any connection with
or uses any energy overhead, underground or under water
lines or cables, or service wires, or service
facilities of a licensee or supplier as the
case may be; or
(b) tampers a meter, installs or uses a
tampered meter, current reversing
transformer, loop connection or any other
device or method which interferes with
accurate or proper registration, calibration
or metering of electric current or otherwise
results in a manner whereby electricity is
stolen or wasted; or
(c) damages or destroys an electric meter,
apparatus, equipment, or wire or causes or
allows any of them to be so damaged or
destroyed as to interfere with the proper or
accurate metering of electricity, (d) uses
electricity through a tampered meter; or (e)
uses electricity for the purpose other than
for which the usage of electricity was
authorised,
so as to abstract or consume or use
electricity
Punishment shall be punishable with The person shall be punishable with
imprisonment for a term, which imprisonment for a term which may extend
may extend to three years, or to three years or with fine or with both.
with fine, which shall not be
less than one thousand rupees. where the load abstracted, consumed, or
Or with both: and if it is proved used or attempted abstraction or attempted
that any artificial means not consumption or attempted use - does not
authorised by the licensee exist exceed 10 kilowatt - fine imposed on first
for the abstraction, conviction shall not be less than three
consumption or use of energy times the financial gain on account of such
by the consumer, it shall be theft of electricity and in the event of
presumed, until the contrary is second or subsequent conviction the fine
proved, that any abstraction, imposed shall not be less than six times the
consumption or use of energy financial gain
has been dishonestly caused by exceeds 10 kilowatt, the fine imposed on
such consumer. first conviction shall not be less than three
times the financial gain on account of such
theft of electricity and in the event of
second or subsequent conviction, the
 sentence shall be imprisonment for a term
not less than six months, but which may
extend to five years and with fine not less
than six times the financial gain on account
of such theft of electricity

In the event of second and subsequent

conviction of a person where the load
abstracted, consumed, or used or attempted
abstraction or attempted consumption or
attempted use exceeds 10 kilowatt, such
person shall also be debarred from getting
any supply of electricity for a period which
shall not be less than three months but may
extend to two years and shall also be
debarred from getting supply of electricity
for that period from any other source or
generating station

Applicability of Sections 126 and 135 of the Electricity Act, 2003: Section 126 of the
Electricity Act lays down that following detection of unauthorized use of electricity, the
electricity charges payable by the person making use of or benefited by the use of
unauthorized use shall be provisionally assessed to the best of the judgement of the
inspecting officer. Section 135 of the Act speaks about theft of electricity being
punishable.
The Government of India clarified the difference between the ‘unauthorized use’ and
‘theft’ as being the latter necessarily possessing the ingredient of ‘dishonest intention’.
For prosecuting someone under section 135 of the Act, a complaint or report by the
police to the Court is necessary u/s 151 of the Act. Section 126 is for assessment of
charges and would also be attracted in cases of offences covered u/s 135 of the Act
where action is taken for the offence of theft and the situation of alleged commitment of
offence is covered under the provisions of Section 126.