Search the Internet          Tips  Sites: Finance, Investment

Oil PSUs mull pre-termination legal options

State-run oil retailing companies held detailed consultations with petroleum ministry on the legal and procedural aspects of cancelling 3718 allotments of petrol pumps, gas agencies and kerosene dealerships, notices for which are likely to be issued later this week.

The oil companies are likely to begin issuing from Friday cancellation notices as a follow up to the prime minister's decision last week in the wake of allegations that ruling BJP functionaries were favoured during the allotments, sources indicated.

As a prelude to the termination notices, Indian Oil, Bharat Petroleum and Hindustan Petroleum have already filed caveats in various high courts and the Supreme Court to prevent local courts from granting ex-parte stay on the cancellation of dealerships.

When contacted, IOC director (marketing), P K Aggarwal, said: "We are tying loose ends by studying various legal aspects involved in the whole process."

Stating that no legal notice has so far been issued, he said oil companies which received government directive to cancel all allotments of petrol pumps, gas agencies and kerosene dealerships made since January 2000 in "public Interest" are likely to complete legal consultations in a day or two.

He, however, did not say as to how long it would take for cancelling all the allotments, notices for which would be issued individually.

Senior petroleum ministry officials said the process could take up to 20 days to complete.

ALSO READ:
The Petrol Pump Row
More Money Headlines