Amendment status not verified — confirm the current text below against the official source.
(1) Where an undertaking of a licensee has vested in the State Government by an order under section 4 there shall be paid to such licensee a compensation which shall be equal to the market value of the undertaking as on the vesting date. (2) The market value of an undertaking for the purpose of sub-section (1) shall be deemed to be the value as determined in accordance with the provisions of sub-section (2) of section 7A of the Electricity Act : Provided that there shall be added to such value such percentage, if any, not exceeding twenty per centum of that value, as may be specified in the licence on account of compulsory acquisition. (3) In the case of all undertaking which vest in the State Government under this Act, the licence granted or the sanction given for the supply of electricity shall be deemed to have been terminated on the vesting date and all the rights, liabilities and obligations of the license under any agreement to supply electricity entered into before that date shall devolve on the State Government : Provided that where any such agreement is not in conformity with the rates and conditions of supply approved by the State Government and in force of the vesting date, the agreement shall be voidable at the option of the State Government. (4) In respect of any undertaking to which section 4 applies it shall be lawful for the State Government after removing any obstruction that may be or Power of State Government to take over any undertaking. Vesting of the undertaking or its assets. Compensation payable to a licensee. 1969 : Guj. 7] Gujarat Electricity Supply Undertakings (Acquisition) Act, 1969 might have been offered, to take possession of the entire undertaking or, as the case may be, of the fixed assets and of all documents relating to the undertaking which the State Government may require, for carrying it on.