Petro regulator to impose hefty penalties

The proposed Petroleum and Natural Gas Regulatory Board will be vested with powers to impose strict penalties on violaters. The Board, which...

The proposed Petroleum and Natural Gas Regulatory Board will be vested with powers to impose strict penalties on violaters. The Board, which will have one chairperson and a maximum of four members, can also involve central investigating agencies, like CBI, to assist it.

According to the Petroleum and Natural Gas Regulatory Board Bill, 2004, “If a person contravenes the directions of the Board, such person shall be punishable with a fine which may extend to Rs 25 crore and in case of continuing contravention with additional fine which may extend to Rs 10 lakh per day for every day during which contravention continues.”

The Bill has also proposed similar punishment for entities who market petroleum, petroleum products or natural gas or operate an LNG terminal without valid authorisation.

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If there are violations on directions issued by the Board on transportation rate in respect of a common carrier, or display of maximum retail prices at outlets, the penalty shall not exceed Rs 1 crore for each contravention. Any continuation of the violation will attract a penalty of Rs 10 lakh per day for every day of the violation.

Apart from having the powers to investigate complaints on its own, the Board will also have the power to involve investigating agencies of the government such as the CBI. In fact, according to the proposed Bill, the “Board shall have, for the purpose of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit”.

	WHAT’S IN STORE

			• Board to impose heavy penalties which may extend upto Rs 25 crore • Violations in transportation rate in respect of a common carrier, or display of maximum retail prices at the outlets to attract penalty upto Rs 1 crore • Board can take help of central investigating agencies like CBI • Chairperson of the Board and the other members to be selected by a search committee which will be headed by the Member of the Planning Commission in charge of energy sector • Fund to be created to run the Board

The chairperson of the Board and the other members will be selected by a search committee, which will be headed by the Member of the Planning Commission in charge of energy sector. Other members of the search committee will consists of secretaries in the ministry of petroleum and natural gas, ministry of finance, ministry of commerce and ministry of law and justice.

A Fund shall also be created, to be christened as the Petroleum and Natural Gas Regulatory Board Fund.

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All grants, fees and penalties charged by the Board will come into this fund, which will be used to pay the salaries of the chairperson and other members of the board and other expenses like salaries, allowances, pensions payable to the officers and employees of the Board.

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