Daijiworld Media Network - Mangaluru
Mangaluru, May 14: A day after Prakash, a dealer with Hindustan Petroleum Corporation Limited (HPCL) went on a protest alleging unjust treatment and discrimination over an act committed by another employee, HPCL issued a clarification to daijiworld explaining the matter.
The statement reads as follows:
Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned public sector enterprise in the business of refining crude oil and marketing of petroleum products, throughout India. The petroleum products are essential commodities under the Essential Commodities Act.
"Vide dealership agreement dated October 18, 2007 entered into by and between HPCL and M D Prakash, the said M D Prakash was appointed as the dealer to carry on the business of sale of petroleum products of petrol/diesel/motor oils/greases and such other products, in the name of M/s Genuine Petro Point at Mudigere, district Chikkamagaluru. The relationship between HPCL and M D Prakash (hereinafter called dealer) is based on the dealership agreement which is a commercial contract and both the HPCL and the dealer are bound by the terms and conditions of dealership agreement dated October 18, 2007 and the dealer is contractually obligated to carry out the business in strict compliance with the clauses of dealership agreement dated October 18, 2007 and to faithfully and promptly carry out, observe and perform all directions, orders or rules made by the Corporation from time to time for the proper carrying on of the dealership business.
"This is a Company owned outlet fully developed by the Corporation with sales building, canopy and driveway and also an amount of Rs 10.34 lacs has been granted to the dealer as working capital loan for operating the outlet under the Corporation’s corpus fund scheme. As per the working capital loan agreement, he is required to repay the working capital loan installment along with the interest from the 13th month of commissioning the outlet. It was noted that he has not been making repayment of the working capital loan and interest from January 2014.
"In September 2013, dealer has solicited for additional HSD business, whereby sales improved up to 188 KL (petrol plus diesel) in October 2013. Based on his earlier request letters and taking into consideration the improved sales, credit was extended to the dealer during exigencies.
"However, the dealer had not made full payment towards the supplies given on November 18, 21 and 23, 2013, amounting to Rs 25,30,989 which is still outstanding, which includes a carry forward balance of Rs 4,05,632.
"We have been continuously following up with the dealer for payment of the above amount who informed that due to non-recovery of dues payable from KSRTC and other customers, payment is pending and same would be cleared. He requested for continuing supplies against credit facility in the meantime. However in view of the outstanding amount as mentioned above, supplies to the outlet were stopped. Dealer also stopped sales form the outlet. Thereafter we have been having several meetings and the dealer was also counselled. During all these meetings the dealer reiterated that outstanding is on account of non-recovery from the market, including KSRTC.
"The dealer lodged a complaint with Director of Civil Rights Enforcement (DCRE) Mangaluru against ASM, Mangaluru alleging that he is not being allowed smooth operation of the outlet, discrimination on a SC category dealer apart from disowning the outstanding amount of Rs 25,30,989 payable to the corporation. After the necessary investigation, the authority is of the view that the matter is purely civil in nature and does not fall under the purview of atrocity vide his order dated 19/3/2014."
"A show cause notice (SCN) was issued to the dealer by Mangaluru regional office vide letter dated 15/04/2014, after obtaining necessary approvals in this regard from appropriate authority in the corporation.
Mangaluru regional office is not aware of arrangements made, if any, by the dealer for operating the outlet. Any such arrangement by the dealer, neither has any recognition nor approval of the corporation, nor is in violation of the terms and conditions of the dealership agreement.
"The dealer had submitted a proposal to our Mangaluru regional office for inducting one D H Dashrath as financial partner in the dealership, in September 2013. Upon scrutiny of the documents submitted by him along with his proposal, it was observed that the dealer’s application was not in order.
"In conclusion, it may be noticed that the dealer is alleging discrimination, harassment, injustice and atrocities only with the intention to avoid making payment against the outstanding amount owed by him to the corporation."