The Hindu : National : Oil firms can cancel tainted allotments, says court

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Wednesday, Jul 20, 2005

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Oil firms can cancel tainted allotments, says court

Legal Correspondent

Bench vacates interim stay on 178 allotments

NEW DELHI: The Supreme Court on Tuesday empowered oil companies to accept the recommendations of an enquiry committee on 178 petrol pump allotments, 81 of which were tainted, made during the National Democratic Alliance regime.

The committee, headed by a retired judge of the court, S.C. Agarwal, found that the 81 allotments were made on extraneous considerations and suggested their cancellation.

A three-judge Bench comprising Justice Y.K. Sabharwal, Justice D.M. Dharmadhikari and Justice B.N. Srikrishna said the companies could cancel these allotments. On the 97 allotments approved by the committee but stayed by the court, it said they could be continued with the original allottees as no objections had been received. To facilitate the cancellation of 81 dealerships and the continuance of 97 others, the Bench vacated its interim stay on 178 allotments.

In 2003, the court ordered status quo on over 400 dealerships when petitions were filed challenging the Centre's decision to cancel all allotments made between 2000 and 2003. Objections were called for from the allottees and based on their response, the court issued directions to the oil companies.

Amicus curiae Gopal Subramanian wanted the court to issue appropriate directions on 23 issues, which arose from the applications of the parties in the matter. The Bench asked them to file objections in four weeks and posted the matter for further hearing after six weeks.

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