21. Vesting of utility in purchaser.–Where a utility is sold under section 20 or section 24, then, upon completion of the sale or on the date on which the utility is delivered to the intending purchaser, as the case may be, whichever is earlier– (a) the utility shall vest in the purchaser or the intending purchaser, as the case may be, free from any debt, mortgage or similar obligation of the licensee or attaching to the utility: Provided that any such debt, mortgage or similar obligation shall attach to the purchase money in substitution for the utility; and 22 (b) the rights, powers, authorities, duties and obligations of the licensee under his licence shall stand transferred to the purchaser and such purchaser shall be deemed to be the licensee.
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Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 3 · National Electricity Policy and Plan.Section 4 · National policy on stand alone systems for rural areas and non-conventional energy systems.Section 5 · National policy on electrification and local distribution in rural areas.Section 6 · Joint responsibility of State Government and Central Government in rural electrification.Section 7 · Generating company and requirement for setting up of generating station.Section 8 · Hydro-electric generation.India Code, Government of India. Text fetched 10 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.