November 29, 2022


The Supreme Court docket on Tuesday dismissed a plea by Adani Gasoline Ltd, excluding it from supplying gasoline distribution rights in three areas of Ahmedabad district and granting the identical to state-owned Gujarat Gasoline Ltd.

A bench of Justices U U Lalit, S Ravindra Bhat and Hrishikesh Roy rejected AGL’s rivalry that Regulation 18 of the Petroleum and Pure Gasoline Regulatory Board (Authorizing Entities to Lay, Construct, Function or Increase Metropolis or Native Pure Gasoline Distribution Networks) Laws, 2008, is violative of Articles 14 and 19(1)(g) of the Structure, and extremely vires Part 16 of Petroleum and Pure Gasoline Regulatory Board Act, 2006 (PNGRB Act).

“It’s held that Regulation 18 is neither arbitrary, nor extremely vires. The target underlying Regulation 18, is appropriate with the general aims of the PNGRB Act. Regulation 18 just isn’t contraindicated by any particular provision of the Act. Additional, as a sectoral regulator, PNGRB is entrusted with the ability to border applicable laws to make sure the aims of the Act, and thus the problem to Regulation 18 can not succeed,” the bench stated.

The SC dominated that AGL’s “declare is precluded by the precept of approbate-reprobate, because it accepted authorization granted by PNGRB (together with exclusion of disputed areas), furnished the efficiency bond and even participated within the public sale for the excluded areas, and solely thereafter challenged authorization when its bid was unsuccessful”.

The bench held that “exclusion of the disputed areas (Sanand, Bavla, and Dholka) was justified within the total information and circumstances”.

The PNGRB Act was enacted by Parliament after the SC, on a Presidential Reference to it, opined in March 2004 that solely Parliament had the correct to legislate in relation to pure gasoline.

Regulation 18 of the 2008 Laws made beneath the Act offers that an entity, not authorised by the Central authorities for laying, constructing, working or increasing CGD community earlier than the appointed date, shall apply for acquiring an authorisation within the prescribed format and the Board might consider the factors for contemplating the applying.

Accordingly, AGL which had earlier been granted sanction by the state for supplying gasoline within the district utilized for authorisation from the Board. However in 2013, it was granted authorisation for Ahmedabad metropolis and Daskroi space, excluding areas of Sanand, Bavla, and Dholka areas of the district.

AGL challenged this within the HC, which rejected its plea.

Dismissing the attraction, the SC additionally requested Adani to pay Rs 10 lakh in prices to the Centre.



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