THE PETROLEUM REGULATORY BOARD BILL, 2002
————
CHAPTER I
Clauses
1. Short title,
extent, commencement and application.
2.
Definitions.
CHAPTER II
3. Establishment
and incorporation of the Board.
4.
Qualifications for appointment of Chairperson and other Members.
5. Term of
office, conditions of service, etc., of Chairperson and other members.
6. Powers
of Chairperson.
7. Removal of
Chairperson or any other member from office.
8. Meetings of
the Board.
9. Vacancies,
etc., not to invalidate proceedings of the Board.
10. Officers and other employees of
the Board.
11. Regional offices of the
Board.
CHAPTER III
12. Functions of the Board.
13. Powers regarding complaints and
resolution of disputes by the Board.
14. Procedure of the Board.
15. Register of authorisation.
16. Authorisation.
17. Application for authorisation.
18. Publicity of applications.
19. Grant of authorisation.
20. Declaring, laying,
building, etc., of common
carrier.
21. Right of first use, etc.
22. Suspension or cancellation of
authorisation.
CHAPTER V
Clauses
23. Board to settle disputes.
24. Filing of complaints.
25. Power to investigate.
26. Factors to be taken into
account by the Board.
27. Penalty for contravention of
directions given by the Board.
28. Appeals.
29. Order passed under the Act
deemed to be a decree.
CHAPTER VI
Finance,
Accounts and Audit
30. Grants by Central
Government.
31. Fund.
32. Accounts and audit.
33. Annual report and its laying
before Parliament.
CHAPTER VII
34. Power of Central Government to
issue directions.
35. Taking over control and
management of facilities and business premises of any entity and retail outlets
in public interest.
CHAPTER VIII
36. Punishment for contravention of
directions of the Board.
37. Punishment for unauthorised
activities.
38. Punishment for establishing or
operating a liquefied natural gas terminal without authorisation.
39. Punishment for laying,
building, operating or expanding a common carrier without authorisation.
40. Punishment for wilful damages
to common carrier.
41. Offences by companies.
CHAPTER IX
42. Maintenance of data bank and information.
43. Obligations of entities.
44. Furnishing of returns, etc., to
Central Government.
45. Chairperson, members,
etc., to be public servants.
46. Protection of action taken in
good faith.
Clauses
47. Civil courts not to have
jurisdiction.
48. Cognizance of certain
offences.
49. Delegation.
50. Power of Central Government to
make rules.
51. Power of the Board to make
regulations.
52. Rules and regulations to be
laid before Parliament.
53. Transitional arrangements.
54. Power to remove
difficulties.
THE PETROLEUM
REGULATORY BOARD BILL, 2002
a
Bill
to provide for the establishment of the Petroleum
Regulatory Board to regulate the refining, processing, storage, transportation,
distribution, marketing and sale of petroleum and petroleum products excluding
production of crude oil and natural gas so as to, protect the interests of
consumers and entities engaged in specified activities relating to petroleum and
petroleum products, ensure uninterrupted and adequate supply of petroleum and
petroleum products in all parts of the country, promote competitive markets and
for matters connected therewith or incidental thereto.
Be it enacted by Parliament in the Fifty-third Year of the
Republic of India as follows:—
CHAPTER
I
Preliminary
1. Short title, extent
commencement and application.-(1)
This Act may be called the Petroleum Regulatory Board Act,
2002.
(2) It extends to the whole of
India.
(3) It shall come into force on such date as the
Central Government may, by notification in the Official Gazette,
appoint.
(4) It applies to
refining, processing, storage, transportation, distribution, marketing and sale
of petroleum and petroleum products excluding production of crude oil and
natural gas.
2. Definitions.-In this Act, unless the context otherwise
requires,—
(a) “appointed day” means the date with effect
from which the Board is established under sub-section (1) of section
3;
(b) “authorised entity” means an entity
authorised to market any notified petroleum or petroleum products, or to
establish and operate liquefied natural gas terminals, or to lay, build, operate
or expand a common carrier under section 19 or, as the case may be, section 20.
(c) “auto liquefied petroleum gas” means a
mixture of certain light hydrocarbons derived from petroleum, which are gaseous
at normal ambient temperature and atmospheric pressure but may be condensed to
the liquid state at normal ambient temperature by the application of moderate
pressure, and which conform to such specifications for use as fuel in vehicles,
as the Central Government may, in consultation with Bureau of Indian Standards,
notify from time to time;
(d) “Board” means the Petroleum Regulatory Board established under sub-section
(1) of section 3;
(e) “bulk sale” means sale of petroleum products
other than retail sale;
(f) “Bureau of Indian Standards” means the Bureau
of Indian Standards set up under section 3 of the Bureau of Indian Standards
Act, 1986 (63 of 1986);
(g) “Chairperson” means the Chairperson of the
Board appointed under section 4;
(h) “common carrier” means such pipelines for
transportation of petroleum and petroleum products by more than one entity as
the Board may declare or authorise from time to time under sub-section
(3) of section 20, but does not include pipelines laid to
supply—
(i) petroleum products to a specific consumer, or
(ii) crude oil;
(i) “compressed natural gas” means natural gas
used as fuel for vehicles, typically compressed to the pressure of 200-250 bars
in the gaseous state;
(j) “dealer” means a person, association of
persons, firm, company or co-operative society, by whatsoever name called or
referred to, and appointed by an oil company to purchase, receive, store and
sell motor spirit, high speed diesel, auto liquefied petroleum gas or compressed
natural gas;
(k) “distributor” means a person, association of
persons, firm, company or co-operative society, by whatsoever name called or
referred to, and appointed by an oil company to purchase, receive, store and
sell to consumers liquefied petroleum gas in cylinders;
(l) “entity” means a person, association of
persons, firm, company or co-operative society, by whatsoever name called or
referred to, other than a dealer or distributor, and engaged in refining,
processing, storage, transportation, distribution, marketing, import and export
of petroleum and petroleum products including laying of pipelines for
transportation of petroleum and petroleum products, or establishing and
operating a liquefied natural gas terminal;
(m) “exchange of products” shall mean giving and
receiving of a petroleum product in accordance with an agreement entered into by
the concerned entities;
(n) “high speed diesel” means any hydrocarbon oil
(excluding mineral colza oil and turpentine substitute), which conforms to such
specifications for use as fuel in compression ignition engines, as the Central
Government may, in consultation with the Bureau of Indian Standards, notify from
time to time;
(o) “kerosene or
superior kerosene oil” means a middle distillate mixture of hydrocarbons which
conforms to such specifications, as the Central Government may, in consultation
with the Bureau of Indian Standards, notify from time to
time;
(p) “liquefied petroleum gas” means a mixture of
light hydrocarbons containing propane, isobutane, normal butane, butylenes, or
such other substance which is gaseous at normal ambient temperature and
atmospheric pressure but may be condensed to liquid state at normal ambient
temperature by the application of pressure and conforms to such
specifications, as the Central
Government may, in consultation with the Bureau of Indian Standards, notify from
time to time;
(q) “marketing service obligations” means
obligations to set up marketing infrastructure, retail outlets in remote areas,
maintain minimum stock of notified petroleum and petroleum products and such
other obligations as may be provided by regulations;
(r) “maximum retail price” means the maximum
price fixed by an entity at which the petroleum and petroleum products may be
sold to the retail consumers and includes all taxes, cess and levies, local or
otherwise and freight or commission
payable to the dealers;
(s) “member” means a member of the Board
appointed under section 4 and includes the Chairperson;
(t) “motor spirit” means any hydrocarbon oil
(excluding crude mineral oil) used as fuel in spark ignition engines which
conforms to such specifications, as the Central Government may, in consultation
with the Bureau of Indian Standards, notify from time to time;
(u) “natural gas” means gas consisting of
methane, ethane, propane, butane, pentane and other gas with similar
characteristics produced from gas wells, gas condensate wells or oil wells and
includes —
(i) any residual gas which is obtained after
processing such gas upon removal of liquefied hydrocarbon and impurities
therefrom ;
(ii) gas in liquid state, namely, liquefied
natural gas ;
(iii) methane obtained from coal seams,
namely, coal bed methane; and
(iv) compressed natural gas;
(v) “notification” means a notification published in the
Official Gazette and the expression “notified” with its cognate meanings and
grammatical variation, shall be construed accordingly;
(w) “notified petroleum and petroleum products”
means such petroleum and petroleum products as the Central Government may notify
from time to time in the Official Gazette, after being satisfied that it is
necessary or expedient so to do for maintaining or increasing their supplies or
for securing their equitable distribution and availability at fair price;
(x) “oil company” means a company registered
under the Companies Act, 1956 (1 of 1956) and includes an association of
persons, society or firm by whatsoever name called or referred to for carrying
out an activity relating to petroleum and petroleum products;
(y) “petroleum” means any liquid hydrocarbon or
mixture of hydrocarbons, and any inflammable mixture (liquid, viscous or solid)
containing any liquid hydrocarbon, including crude oil, liquefied petroleum gas
and natural gas, and the expression ‘petroleum product’ shall mean any product
manufactured from petroleum;
(z) “prescribed”
means prescribed by rules made by the Central Government under this Act;
(za) “public distribution system” means the
system of distribution, marketing or selling of petroleum products, at the
Government controlled or declared price through a distribution system approved
by the Central or State Government;
(zb) “regulations” means regulations made by the
Board under this Act;
(zc) “retail outlet” means filling station where
one or more dispensing pumps have been provided for sale of motor spirit, high
speed diesel, auto liquefied
petroleum gas or compressed natural gas, and includes distributorship for
liquefied petroleum gas or dealership for kerosene;
(zd) “retail sale” means sale of motor spirit,
high speed diesel, auto liquefied petroleum gas and compressed natural gas from
retail outlet;
(ze) “retail service obligations” means
obligations of dealers and distributors for maintaining supplies to consumers
throughout the specified working hours and of
specified quality, quantity and
display of maximum retail price of notified petroleum and petroleum products as
may be provided by regulations;
(zf) “rules” means rules made by the Central
Government under this Act;
(zg) “Secretary” means the Secretary of the Board
;
(zh) “transportation rate” in relation to common
carrier means such rate for moving each unit of petroleum or petroleum products
as the authorised entity may fix in accordance with the regulations made by the
Board.
CHAPTER II
Petroleum
Regulatory Board
3.
Establishment and incorporation of the Board.-(1) With effect from
such date as the Central Government may, by notification, appoint there shall be
established, for the purposes of this Act, a Board to be called the Petroleum
Regulatory Board.
(2) The Board shall be a body corporate by the
name aforesaid, having perpetual succession and a common seal, with power,
subject to the provisions of this Act, to acquire, hold and dispose of property,
both movable and immovable, and to contract, and shall, by the said name, sue
or be sued.
(3) The Board shall consist of a Chairperson
and other members not exceeding four in number, to be appointed by the Central
Government.
(4) The head office of the Board shall be at
New Delhi.
4.
Qualifications for appointment of Chairperson and other members.-The Central
Government shall appoint the Chairperson and other members of the Board from
amongst persons of eminence in the fields of petroleum industry, management,
finance, law, administration or
consumer affairs.
5. Term of
office, conditions of service, etc., of Chairperson and other
members.-(1) Before appointing any person as the Chairperson or other
member the Central Government shall satisfy itself that such person does not
have any financial or other interest which is likely to affect prejudicially his
functions as Chairperson or such other member.
(2) The Chairperson and other members shall hold
office for a term of five years from the date on which they enter upon their
offices or until they attain the age of sixty-five years, whichever is
earlier:
Provided that the Chairperson and other
members shall not be eligible for re-appointment.
Explanation .— For the
purpose of this section, appointment of a member as Chairperson shall not be
deemed to be re-appointment.
(3) A person in the service of the Central
Government, a State Government or an undertaking, corporation or company owned
or controlled by the Central Government or a State Government shall resign or
retire from such service before joining as the Chairperson or other member as the case may
be.
(4) The salary and allowances payable to and
the other terms and conditions of service of the Chairperson and the other
members shall be such as may be prescribed:
Provided that neither the salary and allowances nor the
other terms and conditions of service of the Chairperson or other member shall
be varied to his disadvantage after appointment.
(5) The Chairperson or other member may resign
his office by giving notice thereof in writing to the Central Government and on
such resignation being accepted,
the Chairperson or such other member shall be deemed to have vacated his
office.
(6) The
Chairperson or any other member, upon ceasing to hold office as such,
shall —
(a) be ineligible for further employment under
the Central Government or any State Government; and
(b) not accept any commercial employment for a period of two years from the date
he ceases to hold such office.
Explanation.—For the purposes of this section, “commercial
employment” means employment in any capacity under, or agency of, a person
engaged in trading, commercial,
industrial or financial business in any field and includes also a director of a
company or partner of a firm and also includes setting up practice either
independently or as partner of a firm or as an advisor or a
consultant.
6. Powers of
Chairperson.-The Chairperson shall have the powers of general superintendence
and directions in the conduct of the affairs of the Board and shall, in addition
to presiding over the meetings of the Board, exercise and discharge such other
powers and functions of the Board, as may be assigned to him by the
Board.
7. Removal of
Chairperson or any other member from office.-The Central Government may remove
from office the Chairperson or any member, who —
(a) has been adjudged as insolvent ;
or
(b)
has been convicted of an offence which, in the opinion of the Central
Government, involves moral turpitude ; or
(c) has
become physically or mentally incapable of acting as a member;
or
(d)
has acquired such financial or other interest as is likely to affect
prejudicially his functions as a member ; or
(e) has so abused his position as to render his
continuance in office prejudicial to the public interest :
Provided that a person shall not be removed from his
office as Chairperson or other
member under clause (d) or clause (e) unless he has been given a reasonable
opportunity of being heard in the matter.
8. Meetings of
the Board.-(1) The Board shall meet at such times and places, and shall
observe such procedure in regard to the transaction of business at its meetings
as may be provided by regulations.
(2) The Chairperson or, if he is
unable to attend a meeting of the Board, the senior-most member present,
reckoned from the date of appointment to the Board shall preside at the
meeting:
Provided that in case of common date of appointment of
members, the member senior in age shall be considered as senior to the other
members.
(3) All questions which come up before
any meeting of the Board shall be
decided by a majority of the members present and voting, and in the event of an
equality of votes, the Chairperson or in his absence, the person presiding shall
have a second or casting vote.
(4)
All orders and decisions of the Board shall be authenticated by the
Secretary or any other officer of the Board duly authorised by the Chairperson
in this behalf.
9. Vacancies,
etc., not to invalidate proceedings of the Board.-No act or proceeding of the
Board shall be invalid merely by reason of —
(a) any vacancy in, or any defect in the
constitution of, the Board; or
(b) any defect in the appointment of a person
acting as a member of the Board;
or
(c) any irregularity in the procedure of the Board not affecting the merits of the
case.
10. Officers and other employees of the
Board.-(1) The Board may appoint a Secretary to exercise and perform
under the control of the Chairperson, such powers and duties as may be specified
by regulations:
Provided that the first Secretary to the Board shall be
appointed by the Central Government.
(2) The Board may, with the prior approval of
the Central Government, determine the number, nature and categories of other
officers and employees required to assist the Board in the discharge of its
functions.
(3) The salary and allowances payable to and
the other terms and conditions of service of the Secretary, the others officers
and employees of the Board shall be such as may be
prescribed.
(4) The Board may, in consultation with the
Central Government, appoint consultants required to assist in the discharge of
its functions on such terms and conditions as may be determined by
regulations.
11. Regional offices of the
Board.-(1) The Board may have regional offices at such places as it
may think necessary having regard to public interest and magnitude of the
work.
(2) The regional offices of the Board shall
perform such functions as may be provided by regulations.
CHAPTER III
Functions
and powers of the Board
12. Functions
of the Board.-The Board may —
(a) protect the interest of consumers by
fostering fair trade and competition amongst the entities;
(b) authorise entities to —
(i) market notified petroleum and petroleum
products;
(ii) establish and operate liquefied natural gas
terminals;
(iii) lay, build, operate or expand a common
carrier;
(c) declare pipelines as common
carrier;
(d) regulate —
(i) access to
common carrier by regulations so as to ensure fair trade and competition amongst
entities;
(ii) transportation rates for common carrier by
regulations;
(e) in respect of notified petroleum and
petroleum products —
(i) ensure adequate
availability;
(ii) ensure display of information about the
maximum retail prices fixed by the entity for consumers at retail
outlets;
(iii) monitor prices and take corrective measures
to prevent profiteering by the entities;
(iv) secure equitable
distribution;
(v) provide by regulations and enforce, retail
service obligations for retail outlets and marketing service obligations for
entities;
(f) levy fees and other charges as determined by
regulations;
(g) maintain a data bank of information on
activities relating to petroleum and petroleum products;
(h) perform such other functions as may be
entrusted to it by the Central Government to carry out the provisions of this
Act.
13. Powers
regarding complaints and resolution of disputes by the Board.-(1) The
Board shall have jurisdiction to —
(a) decide any dispute or matter arising amongst
entities or between an entity and any other person on issues relating to
refining, processing, storage, transportation, distribution, marketing and sale
of petroleum and petroleum products according to the provisions of Chapter
V;
(b) receive any complaint from any person
regarding profiteering by an entity or contravention of —
(i) retail service
obligations;
(ii) marketing service
obligations;
(iii) display of maximum retail price at retail
outlets;
(iv) terms and conditions subject to which a
pipeline was declared as common carrier, or authorisation was granted to an
entity for laying, building, operating or expanding a pipeline as common carrier
or for establishing a liquefied natural gas terminal or for marketing notified
petroleum and petroleum
products;
(v) any other provision of this Act or the rules
or the regulations or orders made thereunder.
(2) While deciding a complaint under sub-section
(1), the Board may pass such orders and issue such directions as it deems
fit or refer the matter for investigation according to the provisions of Chapter
V.
14. Procedure
of the Board.-(1) The Board shall have, for the purposes of discharging
its functions under this Act, the
same powers as are vested in a civil court under the Code of Civil Procedure,
1908 (5 of 1908) while trying a suit, in respect of the following matters,
namely, -
(a) summoning and enforcing the attendance
of any person and examining him on
oath;
(b) requiring the discovery and production of
documents;
(c) receiving
evidence on affidavits;
(d) issuing commissions for the examination of
witnesses or documents;
(e) dismissing an application for default or
deciding it ex parte;
(f) setting aside any order of dismissal of any
application for default or any order passed by it ex
parte;
(g) granting interim relief;
and
(h) any other matter which may be
prescribed.
(2) Every proceeding before the Board shall be
deemed to be a judicial proceeding within the meaning of sections 193 and 228,
and for the purposes of section 196,
of the Indian Penal Code (45 of 1860) and the Board shall be deemed to be
a civil court for the purposes of section 195 and Chapter XXVI of the Code of
Criminal Procedure, 1973 (2 of 1974).
(3) The
Board shall be guided by the principles of natural justice and subject to
other provisions of this Act and of any rules made thereunder, shall have powers
to regulate its own procedure including the places at which it shall conduct its
business.
CHAPTER IV
Authorisations
15. Register of
authorizations.-(1) For the purpose of this Act, a record called the
register of authorisations shall be kept at the office of the Board containing
details of entities authorised for marketing notified petroleum and petroleum
products, or for establishing and operating liquefied natural gas terminals, or
for laying, building, operating or expanding a common carrier, as may be provided by the Board by
regulations.
(2) A copy of any entry in the register
purporting to be maintained by the Board and certified as such by an officer
authorised by the Board, shall be
admitted in evidence in all courts and in all proceedings without further proof
or production of the original.
(3) The register shall be open to public
inspection at the office of the Board.
(4)
Any person may, on application to the Board, and on payment of such fee
as may be determined by the Board,
obtain a certified copy of any entry in the
register.
16.
Authorisation.-No entity shall —
(a) market any notified petroleum or petroleum
product;
(b) lay, build, operate or expand any pipeline as
a common carrier; and
(c) establish or operate a liquefied natural gas
terminal, without obtaining authorisation under this Act:
Provided that an entity marketing any notified petroleum
and petroleum product, and establishing or operating a liquefied natural gas
terminal on the appointed day shall be deemed to have such authorisation subject
to the provisions of this Chapter.
17. Application
for authorization.-(1) An entity which proposes to market any notified
petroleum or petroleum products, or
to establish and operate a liquefied natural gas terminal shall apply in
writing for authorisation for operating such activity to the
Board:
Provided
that an entity marketing any notified petroleum or petroleum product, or
establishing or operating a liquefied natural gas terminal on the appointed date
shall furnish the particulars of such activities to the Board within six months
from the appointed day.
(2) An entity which is laying, building,
operating or expanding, or which proposes to lay, build, operate or expand, a
pipeline as a common carrier shall apply in writing for obtaining an
authorisation under this Act.
(3) Every application under sub-sections
(1) and (2) shall be
made in such form and manner and accompanied with such fee as the Board may
provide by regulations.
(4)
Subject to the provisions of this Act, the Board may either reject or accept an
application made to it, subject to such amendments or conditions, if any, as it
may think fit.
(5) In the case of refusal or conditional
acceptance of an application, the Board shall record in writing the grounds for
such rejection or conditional acceptance.
18. Publicity
of applications.-When an
application for
authorisation for marketing notified petroleum and petroleum products, or for
establishing and operating a liquefied natural gas terminal, or for laying,
building, operating or expanding a common carrier is accepted whether absolutely
or subject to conditions or limitations, the Board shall, as soon as may be,
cause such acceptance to be known to the public in such form and manner as may
be provided by the regulations.
19. Grant of
authorization.-The Board may, after hearing the parties interested, grant
authorisation subject to such terms and conditions as it may
specify.
20. Declaring,
laying, building, etc., of common carrier.-(1) If the Board is of the
opinion that it is necessary or expedient, to declare a pipeline for
transportation of petroleum and petroleum products as a common carrier, or that
an entity be authorised to lay, build and operate or expand a pipeline as common
carrier, it may give wide publicity
of its intention to do so and invite objections and suggestions within a
specified time from all persons and entities likely to be affected by such
declaration, or authorisation.
(2) For the purposes of sub-section
(1), the Board shall provide
an opportunity of hearing to the entity owning, laying, building, operating or
expanding the pipeline, as the case may be, and fix the terms and conditions
subject to which the pipeline may be declared as a common carrier, or an entity
may be authorised for laying, building, operating or expanding a pipeline as a
common carrier and pass such orders as it deems fit having regard to the public
interest, competitive transportation rates and right of first
use.
(3) The Board may, subject to the terms and
conditions fixed under sub-section (2), by notification
—
(a) declare a pipeline as common carrier;
or
(b) authorise an entity to lay, build, operate or
expand a pipeline as a common
carrier.
(4)
For the purposes of this section, the Board shall be guided by the
objectives of promoting competition in marketing among entities, avoiding
infructuous investment, maintaining or increasing supplies or for securing equitable distribution
and availability of petroleum and petroleum products at fair price throughout
the country and follow such principles as the Board considers appropriate in
carrying out its functions under this section by
regulations.
21. Right of
first use, etc.-(1) The entity laying, building, operating or expanding a
pipeline for transportation of petroleum and petroleum products shall have right
of first use for its own requirement and the remaining capacity shall be used
amongst entities as the Board may,
after issuing a declaration under section 20, determine having regard to
needs of fair competition in marketing and availability of petroleum and
petroleum products throughout the country.
(2) An entity other than an entity authorised to
operate shall pay transportation rate for use of common carrier to the entity
operating it as an authorised entity.
(3)
An entity authorised to lay, build, operate or expand a pipeline as
common carrier shall be entitled to institute proceedings before the Board to
prevent, or to recover damages for, the infringement of any right relating to
authorisation.
Explanation. —
For the purposes of this sub-section, “the infringement of any right” means
doing of any act by any person which interferes with common carrier or causes
prejudice to the authorised entity.
22. Suspension or cancellation of authorization.-The Board
may, on application of an affected party or on its own motion, if it is
satisfied that the entity in favour of which authorisation has been granted
under section 19 or under section 20 has failed to comply with any conditions of
authorisation, after giving an opportunity of hearing to such entity, suspend
authorisation for such period as it may think fit or cancel the
authorisation:
Provided that where the Board is of the opinion that an
authorised entity persistently acts in a
manner prejudicial to the interests of consumers, it may take action for
the suspension of the authorisation immediately subject to the opportunity of
hearing being given subsequently, after which action so taken may be confirmed
or revoked.
CHAPTER V
Settlement
of disputes
23. Board to
settle disputes.-(1) If any dispute arises, in respect of matters
referred to in sub-section (2) among entities or between an entity and
any other person, such dispute shall be decided by a Bench consisting of two
members nominated by the Chairperson:
Provided that if the members of the Bench differ on any
point or points, they shall state the point or points on which they differ and
refer the same to a third member for hearing on such point or points and such
point or points shall be decided according to the opinion of that
member.
(2) The Bench constituted under sub-section
(1) shall exercise, on or from the appointed day, all such jurisdiction,
powers and authority as were exercisable by a civil court on any matter relating to
—
(a) refining, processing, storage, transportation
and distribution of petroleum and petroleum products by the
entities;
(b) marketing and sale of petroleum and petroleum
products including the quality of service and security of supply to the
consumers by the entities; and
(c) authorisation issued by the Board under
section 19 or section 20.
(3) Notwithstanding anything contained in the
Code of Civil Procedure, 1908 (5 of 1908) or the Monopolies and Restrictive
Trade Practices Act, 1969 (54 of 1969), the Board shall have the power to decide
matters referred to in sub-section (2) and on or after the appointed
date, neither the Civil Court nor the Monopolies and Restrictive Trade Practices
Commission shall have any jurisdiction in the matter referred to in sub- section
(2).
24. Filling of
complaints.-(1) A complaint may be filed before the Board by any person
in respect of matters relating to entities or between entities on matters
arising out of the provisions of this Act:
Provided that the complaints of individual consumers
maintainable before the consumer dispute redressal forums under the Consumer
Protection Act, 1986 (68 of 1986) shall not be taken up by the Board but shall
be heard and disposed of by the consumer forums only.
Explanation.—For the purposes of this sub-section, the expression
“the consumer dispute redressal forums” shall mean the district forum, State
Commission and the National Commission, as the case may be, constituted under
the provisions of the Consumer Protection Act, 1986 (68 of
1986).
(2)
Every complaint made under sub-section (1) shall be filed within sixty
days from the date on which any act or conduct constituting a contravention took
place and shall be in such form as may be provided by the
regulations:
Provided that the Board may entertain a complaint after
the expiry of the said period if it is satisfied that there was sufficient cause
for not filing the complaint within that period.
(3)
On receipt of a complaint under sub-section (1), if the Board is of the opinion that
there is a prima facie case against an entity, it may either investigate
on its own or refer thematter for investigation under
this Chapter, to an Investigating Officer having jurisdiction; and, where the
matter is referred to such Investigating Officer, on receipt of report from
him, the Board may hear and dispose
of the complaint as a dispute where it falls under sub-section (2)
of section 23 and in other case, it
may pass such orders and issue such directions as it deems
fit.
25. Power to
investigate.-(1) For the purposes of provisions of section 24, the Board
shall, subject to the provisions of sub-section (3), appoint by general
or special order, an officer of the Board as an Investigating Officer for
holding an inquiry in the manner provided by the
regulations.
(2) The Investigating Officer shall give the
person referred to in sub-section (1) a reasonable opportunity for making
a representation in the matter.
(3)
No person shall be appointed as an Investigating Officer unless he
possesses such qualification and experience as may be determined by the Board by
regulations.
(4) Where more than one investigating officer is
appointed, the Board shall specify, by order, the matters and local limits of
jurisdiction with respect to which such officers shall exercise their
jurisdiction.
26. Factors to
be taken into account by the Board.-The Board shall, while deciding a dispute
under this Chapter have due regard to the provisions of this Act, and also to
the following factors, namely:—
(a) the amount of disproportionate gain made or
unfair advantage derived, wherever quantifiable, as a result of the
default;
(b) the amount of loss caused to an entity as a
result of the default;
(c)
the repetitive nature of the default.
27. Penalty for
contravention of directions given by the Board.-In case any complaint is filed
before the Board by any person or if the Board is satisfied that any person has
contravened a direction issued by the Board under this Act to provide access to
, or to adhere to the transportation rate
in respect of a common carrier, or to display maximum retail price at
retail outlets, or violates the terms and conditions subject to which
authorisation has been granted under section 19 or section 20 or the retail service
obligations or marketing service obligations, or does not furnish information,
document, return or report required by the Board may after giving such person an
opportunity of being heard in the matter, by order in writing, direct that,
without prejudice to any other penalty to which he may be liable under this Act,
such person shall pay, by way of civil penalty an amount which shall not
exceed one lakh rupees for each
contravention and in case of a continuing failure with additional penalty which
may extend to six thousand rupees for per every day during which the failure
continues after contravention of the first such direction.
28.
Appeals.-Any person aggrieved by any decision or order of the Board or its Bench
constituted under sub-section (1) of section 23, may file an appeal to the High Court
within thirty days from the date of communication of the decision or order of
the Board to him:
Provided that the High Court may, if it is satisfied
that the appellant was prevented by sufficient cause from filing the appeal
within the said period, allow it to be filed within a further period not
exceeding sixty days.
29. Order
passed under the Act deemed to be a decree.-Every order made by
(a) the Board under this Act;
or
(b)
the High Court in any appeal,
shall, on a certificate issued by an officer of the
Board or the Registrar of the High Court, as the case may be, shall be
executable in the same manner as if it were a decree of the
Court:
Provided that where an appeal lies against an order of
the Board and no appeal is preferred then the order of the Board shall be deemed
to be a decree under this section on the expiry of the period allowed for
preferring appeal against such order before the High
Court.
CHAPTER VI
Finance,
accounts and audit
30. Grants by
Central Government.-The Central Government may, after due appropriation made
by Parliament by law in this
behalf, make to the Board grants of such sums of money as are required to pay
salaries and allowances payable to the Chairperson and the other members and the
administrative expenses including the salaries, allowances and pensions payable
to the officers and employees of the Board.
31. Fund.-(1) There shall be constituted a Fund to
be called the Petroleum Regulatory Board Fund and there shall be credited
thereto—
(i)
all grants, fees, penalties and charges received by the Board under this Act;
and
(ii)
all sums received by the Board from such other sources as may be
approved by the Central Government.
(2) The Fund shall be applied for making
payments towards—
(i) the salaries and allowances payable to
the Chairperson and other members and the administrative expenses including the
salaries, allowances and pensions payable to the officers and employees of the
Board;
(ii) the expenses incurred or to be incurred
in carrying out the provisions of
this Act.
32. Accounts
and audit.-(1) The Board shall maintain proper accounts and other
relevant records and prepare an annual statement of accounts in such form as may
be prescribed by the Central Government in consultation with the Comptroller and
Auditor-General of India.
(2) The accounts of the Board shall be audited by
the Comptroller and Auditor-General of India at such intervals as may be specified by
him and any expenditure incurred in
connection with such audit shall be payable by the Board to the Comptroller and
Auditor-General of India.
(3)
The Comptroller and Auditor-General of India or any other person
appointed by him in connection with the audit of the accounts of the Board shall
have the same rights and privileges and authority in connection with the audit
of the Government accounts and, in particular, shall have the right to demand
the production of books, accounts,
connected vouchers and other documents and papers and inspection of offices of
the Board.
(4)
The accounts of the Board as certified by the Comptroller and
Auditor-General of India or any other person appointed by him in this behalf
together with the audit report thereon shall be forwarded annually to the
Central Government and that Government shall cause the same to be laid before
each House of Parliament.
33. Annual
report and its laying before Parliament.-(1) The Board shall prepare once
every year in such form and at such time as may be prescribed, an annual report giving a summary of its
activities including information relating to the proceedings and policies during
the previous years as may be prescribed. Such report shall also contain
statements of annual accounts of the Board.
(2)
A copy of the report shall be forwarded to the Central Government and the
Central Government shall cause such report to be laid, as soon as may be after
it is received before each House of Parliament.
CHAPTER VII
Power of
Central Government
34. Power of
Central Government to issue directions.-(1) The Central Government may,
from time to time, by writing,
issue to the Board such directions as it may think necessary in the
interest of the sovereignty and integrity of India, the security of the State,
friendly relations with foreign States or public order.
(2) Without prejudice to the foregoing provision,
the Central Government may, if it finds necessary or expedient so to do, for
maintaining or increasing supplies of petroleum or petroleum products or both or for
securing their equitable distribution and availability at fair price, issue
policy directives to the Board in writing and such policy directives shall be
binding upon the Board:
Provided that the Board shall, as far as practicable, be
given an opportunity of expressing its views before any directive is issued
under this sub-section.
(3)
The decision of the Central Government whether a question is one of
policy or not shall be final.
35. Taking over
control and management of facilities and business premises of any entity and
retail outlets in public interest.-In the event of war, natural calamity,
strike, industrial unrest, joint action by any group leading to disruption of
supply, and any other circumstance affecting public interest, the Central
Government may, with a view to ensuring continuous supply of petroleum or
petroleum products and their equitable distribution, by notification, for such limited period
as may be provided in the notification, in public interest, either take over the
control and management of any storage site, facilities and business premises of
any entity and retail outlets or suspend its operation or entrust to any agency
of the Central or State Government to manage it in the manner directed by the
Central Government:
Provided that the affected entities shall be given an
opportunity of hearing before issuing orders to take over the control and
management of retail outlets and other business premises:
Provided further that in case of urgency or in cases
where the circumstances do not permit serving of notice for want of sufficient
time or otherwise upon the entity against whom the order is directed, the
opportunity of hearing may be dispensed with in the public interest in order to
maintain the uninterrupted supply of petroleum or petroleum products for a
specified period.
CHAPTER VIII
Offences
and punishment
36. Punishment
for contravention of directions of the Board.-If a person violates directions of
the Board, such person shall be
punishable with fine which may extend to one lakh rupees and in case of second
and subsequent offence with a fine which may extend to two lakh rupees and in
case of continuing contravention with additional fine which may extend to two
lakh rupees for every day during which the default
continues.
37. Punishment
for unauthorized activities.-If an entity markets any notified petroleum or
petroleum products without a valid authorisation, such entity shall be
punishable with imprisonment which may extend to three years or with fine which
may extend to two lakh rupees, or with both, and, for the second and subsequent
offence with an imprisonment which may extend to five years, or with fine which may extend to five
lakh rupees, or with both.
38. Punishment
for establishing or operating a liquefied natural gas terminal without
authorization.-If a person establishes or operates a liquefied natural gas
terminal without obtaining authorisation required under section 16, such person shall be liable for
punishment with an imprisonment for a term which may extend to three years or
penalty of rupees ten lakh or both.
39. Punishment
for laying, building, operating or expanding a common carrier without
authorization.-If a person lays,
builds, operates or expands a common carrier without obtaining
authorisation required under section 16, such person shall be liable for
punishment with an imprisonment for a term which may extend to three years or
penalty of rupees ten lakh or both.
40. Punishment
for willful damages to common carrier.-Every person who wilfully removes, destroys or damages
any pipeline or other work of the common carrier for supplying petroleum and
petroleum products shall for each such offence be punishable with imprisonment
which may extend to three years or with fine which may extend to two lakh rupees
or with both, and, for the second and subsequent offence with imprisonment which
may extend to five years, or with fine which may extend to five lakh rupees, or
with both.
41. Offences by
companies.-(1) Where an offence under this Act has been committed by a
company, every person who at the time the offence was committed was in charge
of, and was responsible to, the company for the conduct of the business of the
company, as well as the company, shall be deemed to be guilty of the offence and
shall be liable to be proceeded against and punished
accordingly:
Provided that nothing contained in this sub-section
shall render any such person liable to any punishment provided in this Act, if he proves that the offence was
committed without his knowledge or that he has exercised all due diligence to
prevent the commission of such offence.
(2) Notwithstanding anything contained in
sub-section (1), where an offence under this Act has been committed by a company and it is proved
that the offence has been committed with the consent or connivance of, or is
attributable to, any neglect on the part of any director, manager, secretary or
other officer of the company, such director, manager, secretary or other officer
shall also be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly.
Explanation.—For the purpose of this section,—
(a) “company” means any body corporate and
includes a firm or other association of individuals; and
(b) “director”, in relation to a firm, means a
partner in the firm.
CHAPTER IX
Miscellaneous
42. Maintenance
of data bank and information.-(1) The Board shall maintain a data bank
and information system relating to activities of entities dealing with petroleum
and petroleum products in such form and manner as may be provided by
regulations.
(2) The Board shall have power to verify the data
supplied by the entities and appoint any person or persons for the purpose and
take such measures as it may consider necessary.
43. Obligations
of entities.-(1) Every entity shall—
(a) maintain such documentary records as may be
specified by the Board by regulations;
(b) allow inspection of such facilities and
documentary records, as may be specified by the Board, by any person authorised by the
Board;
(c) commence operation of activities for which
authorisation has been granted within such period as may be specified by the
Board in the document of authorisation;
(d) register—
(i) agreements with the Board relating to use of
pipelines for supply of petroleum and petroleum products;
or
(ii) any other document which the Board may
determine by regulations;
(e) comply with marketing service obligations and
retail service obligations.
(2) The Board may call for any information from
any entity including information which is considered necessary for ensuring
transparency or ascertaining true ownership of the entity.
(3) The Board or any officer authorised by the
Board shall have the power to inspect and obtain information, wherever
necessary, from the entities.
(4) For the effective enforcement of the terms
and conditions of authorisation, the Board or any officer authorised by it for
that purpose, shall have all the powers of an inspecting officer as provided
under section 209A of the Companies Act, 1956 (1 of 1956).
(5) It shall be the duty of every entity to carry
out the directions of the Board given under this section.
(6) The Board shall maintain confidentiality in
respect of any information and record received by it from the entities and shall
not disclose information contained therein to any person or authority except on
the grounds of public interest.
44. Furnishing
of returns, etc., to Central Government.-The Board shall furnish to the Central
Government at such time and in such form and manner as may be prescribed or as
the Central Government may direct, such returns and statements and such
particulars in regard to any matter in connection with proposed or existing
activities under this Act, as the Central Government may, from time to time,
require.
45.
Chairperson, members, etc., to be public servants.-The Chairperson, members,
officers and other employees of the Board shall be deemed, when acting or
purporting to act in pursuance of any of the provisions of this Act, to be
public servants within the meaning of section 21 of the Indian Penal Code (45 of
1860).
46. Protection
of action taken in good faith.-No suit, prosecution or other legal proceeding
shall lie against the Central Government,
Board, or any officer of the Central Government or any member, officer or
other employee of the Board for anything which is in good faith done or intended
to be done under this Act or the rules or regulations made
thereunder.
47. Civil
courts not to have jurisdiction.-No civil court shall have jurisdiction to
entertain any suit or proceeding in respect of any matter which the Board is empowered by or under this Act to
determine, and no injunction shall be granted by any court or other authority in
respect of any action taken or to be taken in pursuance of any power conferred
by or under this Act.
48. Cognizance
of certain offences.-(1) No court shall take cognizance of any offence
punishable under Chapter VIII save
on a complaint made by the Board.
(2) No court inferior to that of a Chief
Metropolitan Magistrate or of a Chief Judicial Magistrate of the first
class shall try any offence punishable under Chapter
VIII.
(3) Every offence punishable under section 37,
section 38, section 39 or section 40 shall be cognizable.
49.
Delegation.-The Board may, by general or special order in writing, delegate to
any member or officer of the Board subject to such conditions, if any, as may be
specified in the order, such of its powers and functions under this Act (except
the power to settle a dispute under Chapter V and to make regulations under
section 51), as it may deem
necessary.
50. Power of
Central Government to make rules.-(1) The Central Government may, by
notification, make rules for carrying out the provisions of this
Act.
(2) In particular, and without prejudice to the
generality of the foregoing power, such rules may provide for all or any of the
following matters, namely:—-
(a) the salary and allowances payable to and the
other conditions of service of the Chairperson and the other members under section 5;
(b) the salary and allowances payable to and the
other conditions of service of the Secretary, officers and other employees of the
Board under
sub-section (3) of section 10;
(c) any other matters in respect of which the
Board may exercise the powers of a civil court under clause (h) of sub
section (1) of section 14;
(d) the manner in which the accounts of the Board
shall be maintained under section 32;
(e) the time and manner in which the annual report of the Board shall be
prepared under section 33;
(f) the time and manner in which returns and
statements are to be furnished by the Board to the Central Government under
section 44;
(g) any other matter which is to be, or may
be, prescribed, or in respect of which provision is to be made, by
rules.
51. Power of
the Board to make regulations.-(1) The Board may, by notification, make regulations
consistent with this Act and the rules made thereunder to carry out the
provisions of this
Act.
(2) In particular, and without prejudice to the
generality of the foregoing power, such regulations may provide for all or any
of the following matters, namely:—
(a) the time and places of meetings of the Board
and the procedure to be followed at such meetings under section 8, including
quorum necessary for the transaction of business;
(b) the powers and duties of the Secretary under
sub-section (1) of
section 10;
(c)
the terms and conditions of the consultants appointed under sub-section
(4) of section 10;
(d) the functions and powers of regional offices
of the Board under section 11;
(e) regulating open access to and transportation
rate for the common carrier under clause (d) of section
12;
(f) marketing service obligations for entities
and retail service obligations for retail outlets under sub-clause (v) of
clause (e) of section 12;
(g) levy of fees and other charges under clause
(f) of section 12;
(h) the procedure to be followed by the Board
including the places at which it shall conduct its business under section
14;
(i) the manner of maintaining the register of
authorisation under section 15;
(j) the form and manner of making application and
the fee which shall accompany such application, under sub-section (3) of
section 17;
(k) the form and manner of causing wide publicity
of an application for authorisation under section 18;
(l) the guiding principles and objectives for
declaring, or authorising to lay, build, operate or expand a common carrier
under section 20;
(m) the form in which a complaint may be made
under sub section (2) of section 24;
(n)
the manner of holding an inquiry by an Investigating Officer under sub-section (1) of section
25;
(o) the qualification and experience required for
appointment of Investigating Officer under sub-section (3) of section
25;
(p) the form and manner of maintaining data bank
and information system by the Board under
sub-section (1) of section 42;
(q) maintenance of documentary records by an
entity as specified under clause (a) of sub-section (1) of section 43;
(r) any other type of documents which are to be
registered with the Board under clause (d) of sub-section (1)
of section
43;
(s) any other matter which is required to
be, or may be, specified by regulations or in respect
of which provision is to be or may be made by regulations.
52. Rules and
regulations to be laid before Parliament.-Every rule and regulation made under
this Act shall be laid, as soon as may be after it is made, before each House of
Parliament, while it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in
the rule or regulation or both Houses agree that the rule or regulation should
not be made, the rule or regulation shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule or regulation.
53.
Transitional arrangements.-(1) Where, before the commencement of this
Act, an agreement or agreements have been entered into between one oil company
and another for the purpose of sharing of petroleum products or the sharing of
infrastructure facilities among the oil companies and such agreements have been
approved by the Central Government,
the Board may monitor the implementation of such agreements for the
transition period.
(2)
The Board shall monitor setting up of dealerships and distributorships of
motor spirit, high speed diesel, superior kerosene oil and liquefied petroleum
gas by the entities without affecting in any manner whatsoever on the retail
network of the existing entities.
Explanation I.—For the purposes of this section the expression
“transition period” shall mean a period of two years commencing from 1st day of
April, 2002 and, where the Central Government thinks fit so to do, it may extend the period of two years by a
further period of one year having regard to availability of petroleum and
petroleum products at fair price throughout the country.
Explanation II.—For the purposes of this section, “infrastructure
facilities” shall mean facilities at ports, refineries, terminals, depots and
aviation fuelling stations including hydrant lines and shall include loading and
unloading facilities.
54. Power to
remove difficulties.-(1) If any difficulty arises in giving effect to the
provisions of this Act, the Central
Government may, by order, published in the Official Gazette, make such
provisions not inconsistent with the provisions of this Act as it may deem
necessary for removing the difficulty:
Provided that no order shall be made under this section
after the expiry of two years from the date of commencement of this
Act.
(2)
Every order made under this section shall be laid, as soon as may be
after it is made, before each House of Parliament.
STATEMENT OF
OBJECTS AND REASONS
Consequent upon the Government decision for phased
dismantling of Administered Pricing Mechanism and full deregulation of petroleum sector from April 2002,
marketing and pricing of all petroleum products except Public Distribution
System (PDS) Kerosene and LPG (Domestic) have been decontrolled with effect from 1st April,
2002. One of the basic objectives
of this Bill is to provide for a regulatory mechanism which would facilitate
uninterrupted and adequate supply of petroleum and petroleum products in all
parts of the country including remote areas at fair price, promote competitive
markets and access to monopolistic infrastructure in the nature of common
carrier on non-discriminatory basis
by all entities. With respect to
such petroleum and petroleum products as may be notified by the Government from
time to time, the Bill also entails provision of retail service obligations for
retail outlets and marketing service obligations for entities. To prevent exploitation of consumers in
the deregulated scenario, the Regulatory Board shall ensure that each marketing
entity displays for the information of customers the maximum retail prices for
the notified petroleum and petroleum products, and take steps in accordance with
regulations, to prevent profiteering by the entities. Provisions have been made
in this Bill to ensure redressal of grievances and protection of consumer
interest as also resolution of disputes among entities or between an entity and
any other person.
2. These objectives are intended to be achieved
by:—
(a)
setting up of a Petroleum
Regulatory Board to oversee and regulate the refining, processing, storage,
transportation, distribution, marketing and sale of petroleum and petroleum
products. The Board would operate at an arm’s lengths from the Central
Government;
(b)
giving power to the Central Government to broadly lay down policy
framework;
(c)
making provision for the Central Government to intervene in matters
adversely affecting public interest in certain exigencies;
(d) maintaining a data bank of information on
activities relating to petroleum and petroleum products to enable planning and
development thereof.
3. The Bill
seeks to achieve the above objects.
RAM NAIK.
New Delhi;
The 24th
April, 2002.
————
PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF
THE
CONSTITUTION OF
INDIA
————
[Copy of letter No. P-45011/32/97-Mkt. (Dist), dated the
28th April, 2002 from Shri Ram Naik, Minister of Petroleum and Natural Gas to
the Secretary-General, Lok Sabha]
The President, having been
informed of the subject matter of the Petroleum Regulatory Board Bill, 2002
recommends the introduction and consideration of the Petroleum Regulatory Board
Bill, 2002 in the House under article 117(1) and (3) of the Constitution of
India.
Notes on clauses
Clause 1.—This clause provides for
the short title, application of the proposed legislation to the entire country
in the areas of refining, processing, storage, transportation,
distribution, marketing and sale of
petroleum and petroleum products excluding production of crude oil and natural
gas, and empowers the Central Government to appoint the date of commencement of
the proposed legislation by notification in the Official
Gazette.
Clause 2.—This clause defines the
various expressions occurring in the proposed
legislation.
Clause 3.—This clause provides for
the composition, establishment and incorporation of the Petroleum Regulatory
Board with its head office in New Delhi.
The Board will be a body corporate having perpetual succession, a common
seal and shall by the said name sue and be sued. The Board shall consist of a Chairperson
and not more than four other members.
Clause 4.—This clause lays down
the qualifications of the Chairperson and other members of
the Board. It
provides that the Central Government shall appoint the Chairperson and other members of the
Board from amongst persons of eminence
in the fields of petroleum industry, management, finance, law, administration or
consumer affairs.
Clause 5.—This clause provides
that the Chairperson and the other members shall hold office for a term of five
years from the date on which he enters upon his office or until he attains the
age of 65 years, whichever is earlier and that he will not be eligible for
reappointment. Further, it provides
for the fixation of salary and allowances payable to and the other terms and
conditions of service of the Chairperson and other members. It also deals with
the procedure of resignation by the Chairperson or other members of the
Board. This clause also states that
the Chairperson or the other members ceasing to hold office in the Board shall
be ineligible for further employment under the Central Government, State
Government and will not accept any commercial employment for a period of two
years from the date he ceases to hold such office.
Clause 6.—This clause lays down
the powers of the Chairperson with regard to functioning of the Board in addition to
presiding over the meetings of the Board.
Clause 7.—This clause deals with
the circumstances under which the Chairperson and other members of the Board may
be removed from office and the procedure to be followed in such removal.
Clause 8.—This clause empowers the
Board to determine the procedure for the transaction of business in its meetings
including times and places of such meetings.
Clause 9.—This clause enumerates
the circumstances under which the acts or proceedings of the Board shall not be
invalidated.
Clause 10.—This clause makes
provisions for the appointment of Secretary, other officers and employees of the
Board and for the determination of the salaries and allowances and the other
terms and conditions of service of the Secretary, other officers and employees
of the Board. It also provides for
appointment of consultants as may be required to assist the
Board.
Clause 11.—This clause provides
for the establishment of regional offices of the Board. The functions of the
regional offices shall be determined by the Board by
regulations.
Clause 12.—This clause lays down
the powers and functions of the Board.
The functions of the Board, inter alia, shall be
to—
(a) protect the
interest of consumers by fostering fair trade and competition amongst the
entities;
(b) authorise
entities to market notified petroleum and petroleum products, or to establish
and operate liquefied natural gas terminals, or to lay, build, operate or expand
a common carrier;
(c) declare pipelines
as common carrier;
(d) regulate access
to common carrier and transportation rates for common
carrier;
(e) ensure adequate
availability and display of information about the maximum retail prices fixed by
the entity of such petroleum and petroleum products as may be notified by the
Central Government;
(f) monitor prices of
notified petroleum and petroleum products
and take corrective measures to prevent profiteering by the
entities;
(g) lay down and
enforce retail service obligations for retail outlets and marketing service
obligations for entities;
(h) levy fees and
other charges as determined by regulations;
(i) maintain a data
bank of information on activities relating to petroleum and petroleum
products;
(j) perform such
other functions as may be entrusted to it by the Central Government to carry out
the provisions of this Bill.
Clause 13.—This clause seeks,
inter alia, to empower the Board to settle any dispute or matter arising
amongst entities or between an entity and any other person on issues relating to
refining, processing, storage, transportation, distribution, marketing and sale
of petroleum and petroleum products. The Board shall also receive any complaint
from any person regarding contravention of certain provisions of the proposed
legislation and pass suitable orders to decide the
complaint.
Clause 14.—This clause contains
the procedures and powers of the Board in the discharge of its functions under
the proposed legislation.
Clause 15.—This clause provides
for maintenance of records including a register of authorisation containing
details of entities authorised by the Board to undertake any activity requiring
authorisation under the proposed legislation.
Clause 16.—This clause provides
that no entity shall market any notified petroleum or petroleum product, or lay,
build, operate or expand any pipeline as a common carrier, or establish or
operate a liquefied natural gas terminal,
without obtaining authorisation under this Bill. However, an entity marketing any
notified petroleum and petroleum product, and establishing or operating a
liquefied natural gas terminal on the appointed day shall be deemed to have such
authorisation.
Clause 17.—This clause contains
provisions relating to filing an application by an entity for grant of
authorisation by the Board.
Clause 18.—This clause provides for causing due publicity by
the Board of an application for grant of
authorisation.
Clause 19.—This clause seeks to empower the Board
to grant authorisation subject to such terms and conditions as it may specify,
after hearing the interested
parties.
Clause 20.—This clause contains
the procedure for declaring, laying, building, operating or expanding a pipeline
as common carrier by the Board.
Clause 21.—This clause makes, inter alia,
provision for giving the right of first use for own requirement of the owner of
a pipeline. It also provides for
payment of transportation rates for use of common carrier to the authorised
entity.
Clause 22.—This clause seeks to empower the Board
to suspend or cancel the
authorisation granted by it on failure to comply with any condition of
authorisation.
Clause 23.—This clause makes
detailed provisions for settlement of disputes among entities or between an
entity and any other person. This
clause, inter alia, provides that such disputes shall be decided by a
Bench consisting of two members nominated by the Chairperson. This clause also provides that neither
the civil court nor the Monopolies and Restricted Trade Practices Commission
shall have any jurisdiction in the matters which the Board is empowered to
decide.
Clause 24.—This clause contains detailed provisions for filing
of complaint before the Board by any person in respect of matters relating to
entities or between entities on matters arising out of the provisions of this
Bill. The provisions of this clause
shall not be applied in respect of complaint of an individual consumer
maintainable before a consumer dispute redressal forum or a Consumer Disputes
Redressal Commission or the National Consumer Redressal Commission. It further provides for investigation of such a complaint by the
Board or an Investigating Officer of the Board and procedure for passing order
thereon by the Board.
Clause 25.— This clause seeks to
provide for appointment of
Investigating Officer by the Board.
It further states that in case of more than one Investigating Officer,
the Board shall specify the matters and local limits of their
jurisdiction.
Clause 26.—This clause provides
for the factors that need to be taken into account by the Board to decide a
dispute.
Clause 27.—This clause seeks to
empower the Board to impose civil penalty for contravention of its
direction.
Clause 28.— This clause contains
provisions for filing an appeal to the High Court by any person aggrieved by any
decision or order of the Board.
Clause 29.—This clause states that every order made
by the Board or the High Court shall be executable in the same manner as a
decree of the civil court.
Clause
30.—This clause contains provisions for grants of such sum of money as the
Central Government may, after due appropriation made by Parliament by law
in this behalf, make to the Board
to pay salaries and allowances payable to the Chairperson and the members and
the administrative expenses including the salaries, allowances and pensions
payable to the officers and employees of the Board.
Clause 31.—This
clause provides for constitution of a Fund called the Petroleum Regulatory Board
Fund. It also provides for grants, fees, penalties and charges to
be credited thereto and all payments should be made
therefrom.
Clause 32.—This
clause provides for usual provisions regarding maintenance of proper accounts
and other relevant records by the Board as may be prescribed by the Central
Government. The accounts of the
Board should be audited and certified by the Comptroller and Auditor-General of
India which would be laid before Parliament by the Central Government.
Clause 33.—This
clause provides for furnishing of annual report by the Board to the Central
Government. A copy of the annual
report is required to be laid, as soon as may be after it is received, before
each House of Parliament.
Clause 34.—This clause
empowers the Central Government to issue directions in writing to the Board from
time to time.
Clause 35.—This
clause confers power on the Central Government to take over control and
management of facilities and business premises of any entity and retail outlets
in public interest after affording an opportunity of hearing to the affected
entities.
Clause 36.—This clause
provides for punishment for contravention of directions of the
Board.
Clause 37.—This clause
provides for punishment for marketing any notified petroleum or petroleum
products without a valid authorisation.
Clause 38.—This clause
provides for punishment for establishing or operating a liquefied natural gas
terminal without authorisation.
Clause 39.—This clause
provides for punishment for laying, building, operating or expanding a common
carrier without authorisation.
Clause 40.—This clause
provides for punishment for wilful damages to common
carrier.
Clause 41.—This clause
provides that any offence committed by a company and punishable under the Bill
would cover the person in charge of the company.
Clause 42.—This clause provides for
maintenance of data bank and information by the Board relating to activities of
entities dealing with petroleum and petroleum products. Further, the Board shall have power to verify the
data supplied by the entities.
Clause 43.—This
clause provides for obligations of entities which, inter alia, include
commencement of activities for
which authorisation has been granted within time specified by the Board,
maintenance of documentary records as specified by the Board, and allow
inspection of such facilities and documentary records by any person authorised
by the Board. The entity shall also
register documents as may be specified by the Board. The Board may call for any information
from an entity and shall also have the power to inspect and obtain information
from any authorised entity.
Clause 44.—This clause
provides for furnishing of returns and statements and other particulars by the
Board to the Central Government.
Clause 45.—This clause specifies
that the Chairperson, members, officers and other employees of the Board shall
be deemed to be public servants.
Clause 47.—This clause specifies that no
civil court shall have jurisdiction in
respect of any matter which the Board is empowered by or under this Bill to
determine.
Clause 48.—This clause lays
down that a court shall take cognizance of any offence punishable under the
provisions of this Bill only on a complaint made by the Board. This clause further states that no court
inferior to that of a Chief Metropolitan Magistrate or a Chief Judicial
Magistrate shall try any offence punishable under the Bill. Every offence punishable under the
proposed legislation shall be cognizable.
Clause 53.—This clause seeks to
empower the Board to monitor the implementation of agreements entered into
between one oil company and another for sharing of petroleum products or
infrastructure facilities as approved by the Central Government for the
transition period. The Board shall
also monitor setting up of dealerships and distributorships by the entities
without affecting the retail network of the existing entities during the
transition period. The expression “transition period” shall mean a period of two
years commencing from 1.4.2002 and, where the Central Government thinks fit so
to do, it may extend the period of
two years by a further period of one year.
The Bill provides for the
establishment of a Petroleum Regulatory Board to regulate the petroleum sector
activities and for that purpose to levy fee and other charges.
2. Sub-clause (1) of clause (3)
of clause 3 of the Bill provides
for the establishment of the Board.
Sub-clause (3) of
clause 3 provides for the
composition of the Board. Clause 4
provides for the appointment by the Central Government of the Chairperson and
other members of the Board. Sub-clause (4) of clause 5 provides that the salary and
other conditions of service of the Chairperson and members shall be such as may
be prescribed. Sub-clause
(1) of clause 10 provides
for the appointment by the Board of the Secretary to the Board provided that the
first Secretary to the Board shall be appointed by the Central Government; Sub-clause (2) thereof clause 10 provides for appointment by the Board of
other officers and employees against posts created with the approval of Central
Government while Sub-clause (3) provides that the salary and other conditions of service of
Secretary, officers and employees of the Board shall be such as may be
prescribed. Sub-clause (4) of the said clause 10 provides for the
appointment by the Board, in consultation with Central Government, of
consultants. Sub-clause (1) of clause 11 provides for establisment
of regional offices of the Board at
such locations as may be found necessary.
3. The aforementioned provisions of the Bill
will involve expenditure towards meeting the salaries, allowances and other
remuneration of Chairperson, members, officers, consultants and other employees
of the Board, etc. Clause 30 of the Bill provides that the Central
Government may, after due
appropriation made by Parliament by
law in this behalf, make to the Board grants of such sums of money as are
required to pay salary and allowances payable to the Chairperson and the other
members and the administrative expenses. This expenditure has to be met by
the Board from out of the Petroleum Regulatory Board Fund constituted under
clause 31 of the Bill which will mainly consist of grants, etc. made to the Board by the Central
Government, after due appropriation by Parliament.
4. It is not possible to give an exact
estimate of this expenditure at this stage as the exact structure of the Board
would emerge later in consultation with the Board once it is established. So far as the expenditure on salaries
and allowances of Chairperson, other members, officers, other employees and of
consultants, and other administrative expenses is concerned, it is estimated
that the same would involve an expenditure of Rs. 7 crore during the first year
of functioning of the Board. With
the expansion of the activities of the Board, this expenditure which is of a
recurring nature, may increase by a modest amount. It is not possible to estimate at this
stage the extent to which this expenditure would increase. In addition to the aforementioned
recurring expenditure, it is estimated that there would be a non-recurring
expenditure of Rs. 3 crore towards the establishment of the office of the Board,
etc.
MEMORANDUM REGARDING DELEGATED LEGISLATION
2. Clause 51 of the Bill
empowers the Board to make regulations to carry out the provisions of the
Bill. The matters in respect of
which regulations may be made relate, among others, to the procedure to be
followed at meetings of the Board, terms and conditions of consultants appointed
by the Board, marketing service obligations for entities and retail service
obligations for retail outlets, regulating open access to and transportation
tariffs for the common carrier, the
guiding principles for declaring or authorising to lay, build, operate or expand
a common carrier. The form in which
a complaint may be made, the manner of holding an inquiry by an Investigating
Officer, etc. The matters in respect of which provisions may be made in the
regulations are generally matters of procedure or detail to carry out the
purposes of the Bill.
The delegation of
legislative power is, therefore, of a normal nature.