Telangana HC issues notice to oil companies on allotting petrol outlets

Hyderabad: A Division Bench comprising Chief Justice Alok Aradhe and Justice Anil Kumar Jukanti on Tuesday issued notices to the secretary to the Union petroleum ministry, HPCL chairman and MD, Indian Oil Corp chairman, BPCL chairman and MD directing them to respond to notices within four weeks duly furnishing reasons for allotting petroleum outlets and dealerships earmarked for SCs and STs, which are not commercially viable.

The Division Bench was adjudicating the PIL filed by the Telangana SC&ST Petroleum Dealers and Distributors Association, represented by its state president Madari Jayaraju from Secunderabad seeking directions to the Union of India and the oil companies not to proceed or not to select any dealers, pursuant to the notification dated 28-06-2023 issued for selection of 1975 dealers in the Telangana State. The association sought suspension of the notification. About 22.5 percent of total dealerships were allocated for SCs and STs.

Palle Nageshwar Rao, senior counsel for the petitioner, informed the court that HPCL, IOCL and BPCL have issued the notification for the allotment of petroleum outlets and dealership to the candidates belonging to the SCs and STs without any research. Further, the counsel informed the court that most of the petroleum outlets allotted to the SCs and STs are not at all feasible because in most of the locations, where the outlet is sanctioned, there is no availability of the land for setting up of the petroleum outlet, which means that there is no question of awarding the petroleum dealership. In most cases, the allotment is done without conducting any technical study as the outlets are not commercially viable for running the petrol pumps.

The petitioner, through his counsel, averred before the court that the action of the oil companies is nothing but cheating and deceiving the SCs/STs communities by earmarking the wrong locations or sites.