(1) With effect from the date on which a transfer scheme, prepared by the State Government to give effect to the objects and purposes of this Act, is published or such further date as may be stipulated by the State Government (hereinafter in this Part referred to as the effective date), any property, interest in property, rights and liabilities which immediately before the effective date belonged to the State Electricity Board shall vest in the State Government on such terms as may be agreed between the State Government and the Board.
Legal Commentary & Landmark Judgments: Section 131
Section 131 of the Electricity Act, 2003 governs the vesting of property of the State Electricity Board in the State Government and its re-vesting in successor generating companies, transmission utilities, and distribution licensees (unbundling).
In litigating legacy agreements entered into with former State Electricity Boards, cite Section 131 and the applicable State Transfer Scheme to establish privity of contract and enforceable liability against the successor distribution company (DISCOM).