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Ministry of Petroleum & Natural Gas15-March, 2012:Action Taken Against Erning LPG Distributors for Mal-Practices In Release of New Gas Connections

  • Action taken against Erning LPG Distributors for Mal-Practices in Release of New Gas Connections

  • The Minister of State for Petroleum and Natural Gas Shri R.P.N. Singh informed the Lok Sabha in a written reply today that based on the established complaints of forced sale of hot plate or other items/equipment, refusal to register for new LPG connections, action has been taken in 44 cases against LPG distributors in the country during the last three years and the period April 2011 to January, 2012 under the provisions of Marketing Discipline Guidelines (MDG)/Distributorship Agreement.

  • He emphasised that Government has formulated Domestic LPG marketing Discipline Guidelines (MDG) which, inter-alia, provide following action against the distributor for forced sale of hot-plate to the prospective customer:-

•  Fine of Rs.10,000 and recovery of Rs.2000 per customer to whom forced sale is made for 1st offence.

•  Fine of Rs.25,000 and recovery of 2,000 per customer to whom forced sale is made for 2nd offence.

•  Termination of the distributorship for 3rd offence.

  • Shri Singh further stated that the details of rates for availing new LPG connection are displayed at the distributor’s show-room and this is also mentioned in the intimation letters sent to prospective customers for release of connection.

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