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LATEST NEWS UPDATES | LPG distributors say scam in the making

LPG distributors say scam in the making

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published Published on Jan 5, 2014   modified Modified on Jan 5, 2014
-The Hindu


New Delhi: Alleging that oil companies are a "law unto themselves" and that a "big scam" was in the making at the cost of countless consumers, the Federation of LPG distributors of India on Saturday decided to take to the streets with some members and threatened to go on a hunger strike until their demands were met.

"The Marketing Discipline Guidelines are being used by the oil companies to arm-twist and blackmail us into doing things we don't want to do or shouldn't be doing," alleged P.V. Rao, who was chairing the meeting called by the federation to discuss their issues.

"According to the companies, if 100 out of25,000 applications have some errors, the LPG distributor will be liable for strict action. This means losing 50 per cent of the dealer commission for a month the first time it happens, the second time losing 100 per cent and the third time losing our license. This way, we are made to sell things we don't want to," he said, adding that the people who were in charge of getting the information correct, like the delivery boys, were usually uneducated and that the detailed audit and correctness that was required from them was not beneficial for customer service but only a manner of harassing them.

The Federation said the companies were responsible for the thriving black-marketing of gas. "We have asked them time and again to have tamper-proof seals while giving us the cylinders. But, they didn't listen and it naturally follows that the gas is pilfered and sold in small cylinders in the black market," said Pawan Soni, president of the Federation.

The distributors said the companies were brazenly flouting rules, as prescribed by theMinistry of Petroleum and Natural Gas and in some cases against the very Constitution itself.

"The oil marketing companies have increased reservations in the open categories at the cost of the SC/ST and OBC in the selection of LPG distributorship. This is in gross violation of the reservation norms that have been set. The companies have also ignored the direction of the Ministry of Petroleum and Natural Gas Ministry. They have advertised for 3,465 distributorships when the Ministry has only sanctioned 2,794 distributorships," he added.

Mr. Soni added that the companies were tampering with the physically handicapped quota, clubbing sportsperson and freedom fighters with them. "It is called a combined category quota and the final names are drawn by lots."


The Hindu, 5 January, 2014, http://www.thehindu.com/news/national/lpg-distributors-say-scam-in-the-making/article5539209.ece?homepage=true


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