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This is an archive article published on October 12, 2004

Yes, 73% of NDA pumps tainted, confirms SC

Confirming The Indian Express August 2002 investigative series on largescale irregularities in the allotment of dealerships for petrol pumps...

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Confirming The Indian Express August 2002 investigative series on largescale irregularities in the allotment of dealerships for petrol pumps, LPG and kerosene outlets, the Supreme Court today said that over seven out of 10 allotments made by the NDA government were ‘‘improper.’’ And suggested cancellation of 297 of them.

‘‘Almost 73 per cent of the allotments were found to be improperly made,’’ the SC said, making public the findings of a high-level committee which examined over 400 cases published by The Indian Express to show how these outlets had been cornered by relatives and friends of the BJP and its allies.

But today’s order has sprung another irritant for oil marketing companies: maintaining extra vigil on petrol pumps to prevent possible adulteration.

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The SC order allows dealers, whose names figure in the list of tainted allotments, to inspect the two-judge committee report and file objections on issues other than the findings by the panel.

Since the case would be listed after two months, it gives ample time to pump owners to maximise revenue through unfair means before it is snatched away, say oil company officials.

‘‘Those who are sure of losing their dealership would attempt to make hay while the sun shines,’’ said an official with Bharat Petroleum Corp (BPCL).

An Indian Oil Corp offcial said the situation required that ‘‘the periodicity of product sampling and inspections should be stepped up’’. Sales of these pumps should be monitored on daily basis, he added.

 
How Express exposed
and the SC disposed
   

However, a clueless Petroleum Ministry did not issue any advisory to marketing companies. ‘‘We don’t know how many of the 297 cases are petrol pumps… how many of these were commissioned or were in LoI (letter of intent) stage,’’ says an official.

The Ministry cannot take a decision and issue instructions either way since the allotments and their cancellation ‘‘remains sub judice’’.

A two-member committee, comprising retired SC judge Justice S C Agrawal and retired HC judge Justice P K Bahri, had been asked by the SC to probe the lists after it quashed an order of the NDA government which, reacting to the public furore over The Indian Express reports, had ordered cancellation of all 3,158 allotments made between 2000 and 2002.

In the Supreme Court today, a bench, comprising Justice Y K Sabharwal and Justice D M Dharmadhikari, before whom the detailed 21-volume report was placed, said the committee found irregularities in the allotment of 297 petrol pumps out of the ‘‘409 tainted allotments referred for scrutiny.’’

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The bench allowed inspection of the committee report by the counsel for those whose clients’ name figured in the list of tainted allotments.

However, the court made it clear that it would not entertain any argument from the counsel of the affected parties on the question of facts which has been thoroughly examined by the committee.

The bench said ‘‘as far as the factual aspect of the matter is concerned, it stands closed. If we have to go into the factual aspect of the matter again, then there was no need for us to refer the matter to a high-level committee.’’

It said the counsel for the affected parties could raise objections with regard to irregularities found by the committee based on the guidelines pertaining to allotment of petrol pumps.

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The bench adjourned hearing on the matter for eight weeks to give time to the counsel to inspect and take copies of the necessary portion of the report required to prepare the defence.

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