Petrol dealers in Mumbai approach high court on tenancy protection

Nearly 120 of the 257 auto fuel pumps here face closure, as oil marketing companies (OMCs) have lost their earlier protection under the Maharashtra Rent Control Act.

They were enjoying protection from eviction by the land owners prior to 2005. However, after the rule was amended, they lost it and were served with eviction notices by the owners as soon as the lease period expired.

So far, six pumps in Mumbai have been closed and one in Panvel in the adjoining Raigad district. Each pump’s average monthly sale has been about 180 kl of petrol and 111 kl of diesel. About 110 pumps have a daily sale of 4,000 kg of CNG, while 28 pumps are engaged in the daily sale of 1,000 kg of LPG in Mumbai.

Of the 119 pumps facing eviction, a majority are owned by Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL). Indian Oil Corporation is a minor stakeholder.

Mumbai Petrol Dealers Association (MPDA) and the Federation of All Maharashtra Petrol Dealers Association have approached the high court here with separate pleas. MPDA has petitioned that the state government’s recent order disallowing the change of use of land for petrol pumps in all municipal corporation areas should be amended and it should be applicable to Mumbai alone.

On the other hand, the Federation has argued that due to the state government’s order the landowners of petrol pumps would not be in a position to do any other business other than running petrol pumps. This, the Federation claimed was against constitutional rights because as an owner, one has the right to go for a new business by closing the existing pump. The HC will hear the matter next week. Officials from BPCL and HPCL preferred not to comment.

Ravi Shinde, president of MPDA, told Business Standard: “The situation is completely different in Mumbai, wherein OMCs have taken land on lease and the landlords will be free not to renew lease.” He said more and more petrol pumps in Mumbai are required, as over 400 vehicles are registered daily. “If the existing petrol pumps are closed, it will create hardships for motorists, as they will have to drive long distance for their fill,” he said.