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A total of 3718 petrol pumps, gas agencies and kerosene dealerships will be cancelled as the fall out of the August 5 government order, for which oil companies are likely to issue termination notices from early next week.
"The previous announcements cancelling 3158 petrol pump and gas agency allotments following allegations of favouritism had taken into account only the allotments done by Dealer Selection Boards constituted by Petroleum Minister Ram Naik in June 2000. But since the prime minister's order explicitly said cancellations from January 2000, the total number has now gone up to over 3700," government sources said.
After three rounds of secretary level consultations between petroleum and law ministries, a legally acceptable methodology of terminating the dealerships, which minimises scope for arbitration, has been firmed up.
"State-owned oil companies will start issuing termination notices to all allottees and holders of Letters of Intents (LoIs) for petrol pumps, gas agencies and kerosene dealerships (issued since January 2000) from next week. The process would take up to 20 days to complete," they said.
Based on the consultations between the ministries of law and petroleum, a draft is being provided to the oil companies, who have till now filed 2598 caveats in the Supreme Court and various high courts to prevent local courts from granting ex-parte stay on the cancellation of dealerships.
Emphasising that no dealership has been cancelled as of now, sources said the termination notice would give a month's notice to the allottees before formally evicting them.
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