Supply On Petroleum Products To Puducherry's Yanam 'Significantly High': Andhra Pradesh High Court Seeks Response

The Andhra Pradesh High Court has concurred that the supply of petroleum products to Yanam, a town in Union Territory of Puducherry is 'significantly high”. It has thus directed petrol companies to submit records showing the supply, sale, and consumption of petrol and petrol products.

The order was passed by the Division Bench of Chief Justice Dhiraj Singh Thakur and Justice R. Raghunandan Rao in a PIL filed by A. Bhima Naga Ramesh challenging the inaction on part of the State Authorities in initiating action to stop alleged illegal trade of Petroleum products within the State of AP and specifically in the Union Territory.

“Since the supply to 14 petroleum outlets in Yanam appears to us to be significantly high, it would be better to seek some clarification from the petroleum companies, which have appointed retail dealers in Yanam area, to supply the information in this regard as to the exact quantity of the petroleum products supplied to their respective dealers in Yanam numbering 14 in all. The petroleum companies should also reflect the average sale expected from a retail outlet in any other comparable area having similar population. The statistics should reflect monthly supplies for the period with effect from March, 2023 to March, 2024,” the Court stated in its order.

The petitioner had stated that there are ten (10) Petroleum Outlets within the limits of Yanam and once again by way of the impugned notification, the respondent Corporations are proposing to establish '11' more Petroleum Outlets in Yanam, and the population of Yanam is 69,375 only.

The transporters, it was contended, after filling up the lorries from Vizag Petroleum Refinery ordinarily headed for Yanam, decant their supplies to petroleum dealers/agencies enroute, thereby causing loss to the Government of Andhra Pradesh which, alleged to approximately be Rs.250 Crores a year.

Owing to the said contentions, the Court last year had directed the Petroleum Corporations not the finalize establishment of Petroleum in Yanam and had also directed the CBI to inform the Court as to how the complaint submitted by the petitioner had been dealt with.

Last week, an additional affidavit was filed by the CBI and based on the prima facie evidence available, the Court concluded that the petroleum consumption in Yanam was disproportionate to its population. Hence, directed for additional records to be filed.

Case no.: WP(PIL) 154 of 2023

Counsel for petitioner: K.S. Murthy (Sr)

Counsel for respondents: Yagnadutt, Maheswara Rao Kuncheam, VV Satish and SVSS Siva Ram.

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