Scam: 120 Kerala agencies to lose licences
By James Paul | 08 Aug 2002
Thiruvananthapuram:
Nearly
120 gas agencies in Kerala may lose their licences, with
allotments across India being cancelled after allegations
of the Bharatiya Janata Party (BJP)-led union governments
favouritism.
There have been allegations that Petroleum Minister Ram
Naik misused powers of patronage in doling out favours
to the kith and kin of BJP leaders and their supporters
by allotting them lucrative dealerships for cooking gas,
petrol stations and kerosene vends. Following the scandal,
Prime Minister Atal Bihari Vajpayee ordered that these
licences be cancelled.
In the last two years in Kerala, 179 agencies secured
approval, including allotments to soldiers killed in a
border conflict, ex-servicemen, handicapped people and
similar categories. Many who secured licences reportedly
had to pay hefty sums to middlemen. The issue has upset
the Kerala BJP.
State BJP president C K Padmanabhan tried to put up a
brave faced when he told domain-B: [The Kerala
BJP] has not come under any severe criticism. In fact,
many people are upset that the party was not able to secure
licences for its well-wishers. What I have come to understand
is that the selection process this time was a stiff one
and the party never intervened in it.
Naturally, the
general impression many have is that the party had intervened
and was able to get licences for many. The truth of the
matter is different, but at the same time one must not
discount the possibility of some getting it through the
influence of the party, he added.
The cancellation of the allotments has sent shock waves
among those who have already commenced business after
investing huge sums. Reports indicate that some invested
nearly Rs 1 million to start cooking gas agencies.
The spouse of one such licensee said their gas agency
was opened only last month in Thiruvananthapuram after
investing around Rs 7 lakh. For the last several months
we were running from pillar to post to get the required
papers and finally we heaved a sigh of relief when we
commenced business.
The couple is keeping their fingers crossed. We continue to do our business and what we have been told by the oil company is that we can do business till we receive a formal letter.
Reports
indicate that the Kerala BJP is divided on the amount
received by way of donations for such licences. While
some say it was around Rs 30 million, the others think
it was around Rs 50 million.