IOC penalises 25 erring gas agencies Distributors Penalised For Selling Domestic LPG Cylinders To Commercial Establishments

times of india, chennai edition 29th may 2009 page no.2

IOC penalises 25 erring gas agencies
Distributors Penalised For Selling Domestic LPG Cylinders To Commercial Establishments
Julie Mariappan | TNN

Chennai: The Indian Oil Corporation has taken “stern action” against 25 distributors in the city for their alleged role in diverting domestic cylinders for commercial use during the last two years. The IOC, however, has not specified the nature of action. During repeated raids following complaints from the public, it was discovered that distributors themselves were involved in the business of selling domestic cylinders to commercial establishments at a higher price.
“Action has been taken against erring distributors and penalty imposed as per policy of the Indian Oil Corporation,” IOC deputy general manager G Ramkumar said in his reply to an RTI query, while confirming that diversions were made by authorised dealers of Indane between February 2007 and December 2008. The list of charges against distributors include diversion of domestic cylinders to non-existing customers, releasing unauthorised connections, collecting excess charges while supplying refills and behaving rudely with customers.
The distributors penalised for various malpractices include Kavitha Gas Agency, TUCS Limited (at Teynampet, Pallavaram, Shenoy Nagar, Villivakkam, Nungambakkam and Tiruvanmiyur), Barathi Gas, Nanda Gas, Naveen Gas Agency, Triloks Gas Agency, Sri Jayam Indane Gas, Sri Ma Kripa Gas Agency, Prarthana, South Madras Gas Agency, Super Flame, Rajesh Gas, Vaishnavi Agency, Padma Gas, Mahaganapathy and Trilok.
“The number of raids conducted by vigilance personnel of IOC is minimal. The department conducts raids only once in a month in most cases, even though diversion of cylinders for commercial purposes is so rampant these days,” said V Gopalakrishnan, an activist who had filed the RTI application.
Indane’s domestic cylinders of 14.2 kg each are supplied at a subsidised rate of Rs 314.75 per cylinder, while commercial cylinders of 19 kg are priced at Rs 830 in the market. “The cost difference enhances the chances of diversion of cylinders,” says D Johnson, a resident of Mylapore. Most of the tea shops in commercial areas such as N S C Bose Road in Broadway, Kodambakkam, K K Nagar, Mylapore and Ekkaduthangal are supplied with domestic cylinders. In the central business district, delivery boys of TUCS indulge in diversion of domestic cylinders in broad daylight, residents allege.
In its recent circular to all field level officials and LPG distributors, the office of the chief area manager said they should not insist on a 21-day waiting period before the customer books another cylinder. “But dealers are neither aware of such directions nor are they properly educated on customer relations. They turn down requests rudely despite being told about the circular,” M Leeladevi, a resident of Pammal Nallathambi Street, said.