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Section 137: Punishment for receiving stolen property

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 2003
Section 136 All 185 Sections of Electricity Act Section 138

Legal Commentary & Landmark Judgments: Section 137

Section 137 of the Act prescribes punishment for receiving stolen electric lines or materials, imposing imprisonment of up to three years or fine of up to ten thousand rupees, or both, on scrap dealers or individuals knowingly purchasing stolen power equipment.

  • Criminalization of Fencing Utility Materials: Targets scrap yards, metal recyclers, and black-market dealers who receive or retain stolen conductors, copper windings, or transmission components.
  • Knowledge or Reason to Believe Prerequisite: Requires proof that the accused knew or had reasonable cause to believe that the materials were stolen electrical utility property.
  • Presumption of Knowledge for Distinctive Utility Markings: Creates an adverse judicial inference where the seized metal components carry embossed government utility emblems or distinctive high-voltage transmission braids.
Key Landmark Precedents:
  • M.P. Electricity Board v. Shail Kumari (2002) 2 SCC 162: Supreme Court highlighted that illegal commercial markets for stolen copper lines drive transmission grid vandalism and endanger human life.
  • Executive Engineer, Southern Electricity Supply v. Sri Seetaram Rice Mill (2012) 2 SCC 108: Affirmed the comprehensive penal net covering all participants in the illicit electrical theft chain.
  • State of M.P. v. Kedar Narain AIR 1969 MP 110: Affirmed that scrap dealers receiving industrial infrastructure materials bear a duty to verify lawful provenance.
Courtroom Practice & Strategic Litigation Guidance:

Metal recyclers and commercial scrap dealers must maintain a formal acquisition logbook recording seller Aadhaar cards and vehicle numbers for all industrial metal purchases; failure to produce documentation creates immediate Section 137 criminal liability.

Section 136 All 185 Sections of Electricity Act Section 138