News Detail

<p style="margin-left:.25pt; margin-right:5.05pt; text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Full surrender of RO site M/s.Sanjay Service Station (CC.118647) situated at Plot Nos.163,166,167 &amp; 168/174 in Kahat No. 15 &amp; 16/21, Jhumritelaya, Dist: Koderma, State: Jharkhand admeasuring an area of 45,000 Sq.ft (4182.160 Sq.mtr)</span></span></span></p> <p style="margin-left:.5pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial"><strong><u>Lease particulars:</u></strong></span></span></span></p> <p style="margin-left:.7pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Plot A : 30,000 Sq.ft area taken on lease from 01.09.1962 to 31.08.1992 initially for a period of 15 years with further renewal option of 10 years and 5 years at monthly rental of INR125/-.</span></span></span></p> <p style="margin-left:.95pt"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Plot B : 15,000 Sq.ft area taken on lease from 01.08.1963 to 31.08.1992 initially for a period of 14 years 1 month with further renewal option of 10 years and 5 years at monthly rental of INR175/-.</span></span></span></p> <p style="margin-left:.95pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial"><strong><u>Trade:</u></strong></span></span></span></p> <p style="margin-left:1.45pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The last registered sales during the year 2001-02 was 0.67 klpm of MS and 76 klpm of HSD. RO closed since 19.12.2001.</span></span></span></p> <p style="margin-left:1.7pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial"><strong><u>Further Development:</u></strong></span></span></span></p> <p style="margin-left:1.7pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">However, post negotiations the lease could not be registered as there was dispute amongst the legal heirs i.e. the sons and son-in-laws of the deceased land owner. Later in Dec 2001, the landlords created law and order situation at the site and forcibly closed the operations from the site. Police / District officials help was sought but in vain.&nbsp;&nbsp; RO could not function from the site thereafter.</span></span></span></p> <p style="margin-left:2.15pt"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial"><strong><u>Legal Opinion:</u></strong></span></span></span></p> <p style="margin-left:2.9pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Legal opined that there is neither valid lease exist after August, 1992 nor&nbsp; have any contractual or statutory right to continue at the site and somehow BPCL was able to continue&nbsp; at the site till 2001 in spite of retail outlet continuously facing disturbance/law and order problem created regularly by the legal heir claimants of the original lessor which resulted in hindrance of day to day operations and RO operations were suspended from Dec 2001.</span></span></span></p> <p style="margin-left:2.65pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial"><strong><u>Resitement details, if applicable/Dealership status:</u></strong></span></span></span></p> <p style="margin-left:2.9pt"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">In view of the closure of site since Dec 2001 and continuous loss of business, the RO site was fully resited on 26.10.2005. The current combined volume at the resited site is 242 klpm. <strong><u>Justification for surrender :</u></strong></span></span></span></p> <ul> <li><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">There is no valid lease of the RO site since September, 1992</span></span></span></li> <li><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">BPCL does not have any contractual or statutory right to continue at the site</span></span></span></li> <li><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Renewal could not take place because of internal family issues and improper legal documents</span></span></span></li> <li><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">RO has been fully resited in 2005 and old site lying closed since December, 2001</span></span></span></li> <li><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Other SBU&#39;s have also given NO use clearance for the site</span></span></span></li> </ul> <p style="margin-left:4.1pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">View above, Committee for RO Site Surrender which was constituted by the Board has scrutinized &amp; recommended the Surrender Proposal vide note.RNC.SSS dated.06.06.2013.</span></span></span></p> <p style="margin-left:3.85pt"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial"><strong><u>WPV:</u></strong></span></span></span></p> <p style="margin-left:4.1pt"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">WDV of assets as per SAP:&nbsp;&nbsp; Movable : INR 2.01 lacs, Immovable : INR l.32 lacs to be written off</span></span></span></p> <p style="margin-left:4.1pt; margin-right:0in"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial"><strong><u>Approval requested for :</u></strong></span></span></span></p> <ol> <li><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Full surrender of RO site M/s.Sanjay Service Station (CC.l 18647) situated at Plot Nos.163,166,167 &amp; 168/174 in Kahat No. 15 &amp; 16/21, Jhumritelaya, Dist: Koderma, State: Jharkhand&nbsp; admeasuring an area of 45,000 Sq.ft (4182.160 Sq.mtr) to the lessors</span></span></span></li> <li><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Write off for the WDV value of immovable assets INRl.32 lacs</span></span></span></li> </ol> <p><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source:SNP Infra Research</span></span></span></p>