(1) The Commission may inquire into the functioning of a licencee in respect of his obligations under this Act, in the following circumstances, namely :
     (a) upon receiving a complaint from any consumer or consumer association or any trade association ; or
     (b) upon a reference made to it by the State Government the Central Government, the Central Electricity Regulator Commission or Central Electricity Authority ; or
     (c) upon receiving a complaint form a person engaged in the generation transmission, distribution or supply of electricity : or
     (d) upon its own knowledge or information that the licensee is committing or has committed any default in carrying out such obligations.
(2) The Commission may revoke a licence on one ro more of the following grounds, namely,
     (a) that the licensee has committed a willful default to do anything required to be done by or under this Act, the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948 ;
     (b) that the licenseehas committed breach of any of the terms and conditions of the licence , the breach of which is expressly declared by the licence to render it liable to revocation ;
     (c) that the licensee has failed within the period specified in the licence or any longer period allowed by the Commission to show that he is in a position to fully and efficiently discharge the duties and obligations imposed on him by the licence or to pay the fees or charges or to make the deposit or furnish the security required by the licence ;
     (d) where in the opinion of the Commission the financial position of the licensee is such that he is unable to fully and efficiently discharge the duties and obligations imposed on him by the licence.
(3) Notwithstanding anything contained in sub-section (1) and (2), the Commission may, on the application or with the consent of the licensee, revoke the licence in respect of the whole or any part of the area of transmission or supply, upon such terms and conditions as it thinks fit.
(4) A licence shall be revoked under this section only after giving to the licensee a notice of not less than three months, stating the grounds on which the revocation is proposed and after affording him an opportunity of being heard.
(5) Where the Commission might under sub-section (2) revoke a licence, it may instead of revoking the licence permit it to remain in force subject to such further terms and conditions as it thinks fit to impose and any further terms or conditions so imposed shall be binding upon and be observed by the licensee and shall be deemed ot be incorporated in the licence.