Section 7: Deduction from the gross amount.

The Government shall be entitled to deduct the following sums from the gross amount payable under this Act to the licensee:- a) the amount, if any, already paid in advance; b) the amount, if any specified in Section 8 ; c) the amount payable, due, or accrued, if any, including interest and/or surcharge thereon, from the licensee to the Board, for energy supplied by the Board before the vesting date ; d) all amount and arrears of interest, if any , thereon, due from the licensee to the Government ; e) the amount, if any, equivalent to the loss sustained by the Government by reason of any property or rights belonging to the undertaking not having been handed over to the Government, the amount of such loss being deemed to be the amount by which the market value of such property or rights exceeds the amount payable therefore under this Act, together with any income which might have been realised by the Government if the property or rights had been handed over on the vesting date ; f) the amount of all loans due from the licensee to any financial institutions constituted by or under the authority of the Government and arrears of interest, if any, thereon ; g) all sums paid by consumers by way of security deposit and arrears of interest due thereon on the vesting date in so far as they have not been paid over by the licensee to the Government ; h) all advances from consumers and prospective consumers, and all sums which have been or ought to be set aside to the credit of the consumer’s fund, in so far as such advances or sums have not been paid over by the licensee to the Government ; i) the amounts remaining in Tariffs, and Dividends Control Reserve, Contingencies Reserve, Provident Fund and Staff Gratuity Fund accounts and the Development reserve, in so far as such amounts have not been paid over by the licensee to the Government ; j) the amount if any, as specified in sub-sections (2) and (3) of Section 10 ; k) the amount , if any, relating to debts, mortgages or obligations as mentioned in proviso to sub-section (2) of Section 5: Provided that before making any deduction under this section, the licensee shall be given a notice to show cause against such deduction, within a period of fifteen days from the date of receipt of such notice.