LPG - multi connections ~ decision of Courts

I had recently posted about KYC and the buzz in Cooking gas agencies.  The filing of KYC is applicable for those having ‘multiple connection’ and not for those having dual cylinders. In order to weed out multiple and fake connections, the three oil companies - Bharat Petroleum, Hindustan Petroleum and Indian Oil Corporation - asked consumers to voluntarily give up additional connections.  There were statements quoting officials that multiple connections "in the same name and at the same address" as well as "husband and wife" connections at the same address would be summarily disconnected. In case of multiple connections at same address under different names, distributors have been asked to collect KYC forms to verify genuine users.

Web-tracking of domestic liquefied natural gas ( LPG) connections has yielded results with oil marketing companies ( OMCs) blocking 1.3 million multiple connections this year. Growth in overall LPG consumption has also fallen to a single digit (6 per cent) in the past few months, which is sharply in contrast to a normal double digit growth even though new connections are being issued.  Formally launched in June this year, the transparency portal allows customers to keep an eye on the number of cylinders sold in their account by the dealer. It empowers companies to get quick data on number of connections a person or a house has and subsidy availed by each consumer.   Reports state that three oil marketing companies — Indian Oil, Bharat Petroleum and Hindustan Petroleum— have blocked 3.8 million connections by end of previous financial year under a drive that began in May 2010. According to the companies, 27 million of the total 140 million LPG connections in the country are with people who already have one LPG connection.

At this juncture, came the new norms announced by the Ministry of Petroleum and Natural Gas  that consumers can retain multiple connections but will have to shell out more for the cylinders. They will be priced thrice as much as the subsidised refill.

Then there are some cases filed before Courts and Courts coming to the rescue (!) of the consumers.  Recently, the Madurai bench of the Madras High Court court  stayed  Govt. order mandating production of ration cards for new connections. The order came on a PIL filed by advocate J Suresh of Karuppayurani in Madurai district. In the order, the court said LPG agencies should not insist on production of ration cards or no objection certificates for consumers coming within their revenue jurisdiction.

Today, Express News Agency reports of another order of the Madras High Court  in case pertaining to  a joint family holding multiple LPG connections, ordering that they be allowed to retain them. The court ordered that the OMC had failed to take into account the hardship experienced by the household in question, which had three families. The court had, in this case, pointed out that the family was having a common kitchen, and hence, it was unfair to ask them to surrender the connections.

While the OMCs’ drive to eliminate multiple connections  is aimed at preventing fraud, there may be genuine instances where certain consumers such as joint families need to have multiple LPG connections.  But there is official channel for them to present their cases and get a favourable decision ~ such decisions have to be based on individual merits of the case or else only chaos will remain

With regards – S. Sampathkumar.