- (1.) This petition has been filed by a dealer of Superior Kerosene Oil of Indian Oil Corporation Ltd. at district Badaun (hereinafter referred to as the ''petitioner') for quashing the letter dated 29th September, 2005 issued by the Senior Divisional Manager, Indian Oil Corporation selecting the petitioner for the Pilot Project Scheme in district Badaun and directing the petitioner to issue licence to four sub-dealers appointed by the petitioner. A further direction has also been sought in this petition for not including the name of the petitioner in the Pilot Project Scheme.
(2.) Pursuant to the meeting held on 30th May, 2005 in respect of the Scheme for strengthening the distribution of kerosene oil under the Public Distribution System (popularly known as ''Pilot Project Scheme'), a communication dated 1st July, 2005 was sent to all the State Level Coordinators to select the wholesale dealers who would then appoint the sub-wholesale dealers. The relevant portion of the Pilot Project Scheme as contained in Annexure ''2' to the petition, is as follows:- "Salient features of the proposed Scheme for strengthening the distribution of kerosene under the Public Distribution System (PDS). BACKGROUND 1. MOP&NG makes State wise allocation of SKO on a quarterly basis, and the State Governments further allocate it to the Districts. The product is made available to the retail points (around 5 lakhs in no.) through a network of 6547 wholesale SKO dealers appointed all across the country by the Oil Marketing Companies (OMCs). 2. Out of the total of 6056 development block in the country, 2776 blocks do not have wholesale, dealerships of SKO. The State/UT-wise details are at Annex-A. It is critical to rectify this situation with a view to ensuring the availability of this product to the targeted consumers. OBJECTIVE OF THE SCHEME 3. PDS Kerosene to be made available to the targeted consumers. This would involve the following:- (i) Working with the State Government to ensure that the target group implies BPL families. (ii) Go by the definition of the Planning Commission regarding BPL families. (iii) Based on NCAER study findings, calibrate Kerosene allocations to different States taking into account the number of BPL families in the State. 4. To contain diversion of PDS Kerosene for unintended usage/adulteration. This objective is proposed to be achieved by ensuring that Kerosene reaches the targeted consumers and by involving Panchayat Raj Institutions (PRIs) in monitoring the implementation of the scheme. SALIENT FEATURES OF THE SCHEME 5. For meeting the above stated objectives, the Ministry has proposed that the OMCs will establish at least one whole sale SKO dealership in each of the development blocs of the country with the following facilities. (a) Storage tank with the minimum capacity of 20 Kilo liters. (b) Electronically metered dispensing pumps. (c) Adequate number of barrels for delivery of SKO to sub wholesale points. (d) One or more barrel sheds. 6. Existing wholesale dealers will also be provided these facilities if these do not already exist. The expenditure incurred on creation of these facilities will be borne by either the Government or the OMCs. It will be responsibility of the OMCs and not the dealer to supply kerosene at the block wholesale points. 7. About 5 to 10 sub wholesale points would be created in each block in consultation with the District Administration. These sub wholesale points would further make supplies to the retail points. The supplies to the sub wholesale points would be made under the direct supervision of the Oil Companies. The OMCs would also provide at their own cost, adequate number of barrels at these sub wholesale points for convenient transportation of the product."
(3.) In connection with the aforesaid Pilot Project Scheme, the Indian Oil Corporation sent a communication dated 6th July, 2005 to the petitioner and the relevant portion of the communication is as follows:- "Government of India have approved a Pilot project for strengthening the distribution of PDS kerosene in 10% blocks in the country. The main purpose of the scheme is to ensure delivery of PDS kerosene to the targeted beneficiaries in the rural areas by setting up at least one wholesale dealer and 5-10 sub-wholesalers in each of the block. Your SKO agency has been identified to be part of the project. In this scheme SKO will be supplied to the Sub-whole sellers through specially coloree barrels, which will be provided to them by Oil Co. These barrels will be transported by a MCV (TATA make etc.) that will be painted as per specifications given to you by the Oil Co. and this vehicle will have to be arranged by the dealer by 20th July 05. Transportation charges will be given to you as decided by the Oil co. For filling SKO from dealer's Corporation will install two dispensing unit which are to be calibrated and stamped by 15th July 05. Barrels storing shed is to be constructed in the SKO godown premises for which necessary approval has to be taken from the Explosives Deptt. after incorporating the necessary changes in the present layout of the godown. Under this scheme you have to appoint sub wholesaler together with District Coordinator and the field officer in consultation with the district civil supplies by keeping these points in consideration. 1. Sub wholesaler should have an arrangement for land/rented premises for storing the barrels. 2. Sub wholesaler belong to the local area. 3. He/she should not be the existing dealer or Reseller. 4. He/she must have appropriate finance to carry out the business of 24 Kl. SKO. This must be finished by 8th of July 05." ;