Tough stand of Government on Petrol Pump Land

It is becoming difficult for petrol Pump owners in India to release their land from the clutches of Public Sector Oil Marketing Companies with Government of India taking a tough stand on the above issues. In recent years due to non increase of commission on sale of fuels the business of petrol pump has become unviable for the petrol pumps  having low sales. Even if the Dealer wants to quit the business of the petrol Pump for some other lucrative business, the Land on which the petrol pump stands cannot be released from the PSU oil companies due to current directives of the Petroleum & Natural Gas ministry to the PSU oil Companies in form of Deleasing Policy for Retail Oulet sites-2010 Policy circular no:R-30024\56\07MC dated 28.4.2010

       In the above policy it is clearly specified that the PSU Oil companies to coerce the landlords to sale or let out their property to PSU oil companies even after the lease period have expired. The policy has stressed upon to persue litigation upto the last available option, irrespective to the provision contained in the lease agreements executed between the Land owners and the Oil companies. In the policy it is clearly stated that even after the lease period have expired the oil companies should not vacate the land  and opt for all available legal options to continue squatting on the land of poor landlords.

 The lease rents on the above properties which were taken on lease decades before are in the range of Rs.50 to Rs.80 per month only which is less then the daily wage of a worker employed under NREGA scheme of Government. Decades have passed and still the litigations for release of land by the Petrol pump owners languish in the courts. The policy of oil companies not to honour the committments made under the lease agreement and to go for unnecessary litigation in order to squat on the public land on meager lease rent clearly shows the policy of PSU oil companies to find loopholes in the law to enjoy unlawfull gains. 

 The plight of petrol pump owners who have not given the land on lease to the Oil companies and own the land  on which the petrol pump stand themselves is even more bad, because the Oil companies in the dealership agreements with the Dealers who own the land themselves have inserted a clause which bounds them to sell the land on which the Petrol pump stands to the oil Companies at the rate in which the dealer had purchased the land. Most of the dealers had purchased the land  decades before and now if they sell the land to the oil companies at their purchase rates then they have to pay the Capital gains tax on the property caculated on the current market rates from their pockets.