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LPG Distributors Fleecing New Customers
Oct 21, 2008 03:46 PM 27682 Views
(Updated Feb 03, 2009 03:15 AM)

I am writing this article to express my shock and severe disapproval over the manner in which local LPG distributors of Indane and HP Gas are fleecing consumers seeking new LPG connections by actually forcing them to buy LPG stoves from them along with the LPG connection. I thought this was happening only with our local Indane distributor, Gajanana Enterprises (Koramangala, Bangalore), but a search on the Internet reveals that this is a far more widespread racket than I thought. It seems to be happening all across the country. This is what prompted me to write this article.


Here's my story...


We registered for an Indane LPG connection in August this year. At that time, all the petroleum companies had put a freeze on issuing new connections, so the folks at the local Indane distributor (Gajanana Enterprises) said that it would take a couple of months for us to be allotted a connection. We were finally allotted a connection in October after the Govt. asked the petroleum companies to start reissuing LPG connections. So far, so good.


Here's where the scam begins. When we went there to get the new connection, we were told clearly by them that as per the "new rules", it is mandatory for all new consumers to buy 'Green Label' LPG stoves from them, without which they would not get the connection. I told them that we already have an ISI marked LPG stove and that it doesn't make sense for us to buy a new one. But he said that an ISI mark is not enough, the LPG stove has to have a 'Green Label' as well. Now, the LPG connection costs Rs. 2, 200. The cheapest LPG stove with the distributor costs Rs. 1, 750, and is a complete waste for us!


I found this hard to believe. We called up the nearby HP Gas distributor to confirm if this was true, and he also said the same thing. I still couldn't believe that anyone could set such a precondition! So, I went home and e-mailed Indane (indanecareblr@indianoil.co.in). I asked them specifically two questions:




  1. Is it mandatory to have 'Green Label' marked LPG stoves, or is ISI mark enough?




  2. If yes, is it mandatory to buy the stove from the distributor or can we buy it from anywhere?






To this, I received the following reply:


From: "INDANECAREBLR@indianoil.co.in"


To: Vijay Padiyar


Sent: Wednesday, 15 October, 2008 5:35:07 PM


Subject: Re: Regarding compulsory purchase of LPG stove with new Indane connection


Dear Customer,


As per your email message appended below, we understand that you are in need of a new LPG Gas Connection.


Kindly be informed that New Domestic LPG Connections are being released across the Counter, to all those customers who wish to avail a New Domestic LPG Connection.


Further, you may also opt for purchasing a LPG Stove / Cooking Range from the range available at our distributors showrooms. We recommend you to buy this product, since it is tested for better quality, higher safety, High Thermal Efficiency to the extent of 68% and cost effectiveness by our Company. We leave the choice to you to buy it from us or from any other source, so long as it bears the BIS mark or is of an approved quality / make.


Kindly get in touch with us on the contact nos. given below in case you require any assistance


With Regards,


Christina Samuel


Dy Mgr (Customer Relationship)


Indane Area Office,


Bangalore


Tel Nos. 22239473 / 22130421


To: INDANECAREBLR@indianoil.co.in, prdeodhar@indianoil.co.in


From: Vijay Padiyar


Date: 10/10/2008 07:43PM


Subject: Regarding compulsory purchase of LPG stove with new Indane connection


Hello


We have been allotted a new Indane domestic connection through Gajanana Enterprises (Indane distributor in Koramangala, Bangalore). The distributor is telling us that we need to compulsorily have a 'Green Label' marked LPG stove at our home or otherwise buy it from them, failing which they cannot give us the new connection.


Can you please confirm if this is a policy decision taken by Indane, or is the distributor illegally forcing us to buy a LPG stove from him? If illegal, whom can I contact to report this?


We already have a LPG stove (with BIS certification but no 'Green Label') and would not like to buy a new one just to get the LPG connection.


Regards


Vijay Padiyar


Clearly as per the mail sent by Indane, there is no such rule that says that new consumers have to buy specifically a 'Green Label' marked LPG stove. The ISI mark is enough. Furthermore, it also clarifies that the LPG stove may be purchased from anywhere and not necessarily from the distributor. I don't know if the distributors are doing this on their own or with the connivance of the petroleum companies. I suspect it's the latter.


So I went and confronted the local distributor Gajanana Enterprises with this e-mail. The guy manning the front desk asked me to talk to the senior official inside the cabin. I went and told him about the discrepancy in their version of the rules and that of Indane. Upon seeing the e-mail, he mumbled something that I couldn't hear properly and then agreed that I can just take the LPG connection and needn't buy the LPG stove.


Satisfied finally, I went back to the front desk guy and told him that his boss agreed with me. Upon hearing this, he immediately got an unpleasant look on his face. He started threatening me saying that they have to conduct an inspection at our house as per the rules to verify that the applicant doesn't already have a LPG connection, and if they find one there then we would not be given the connection. I agreed for this as it's a legitimate rule, but I'm afraid that they can easily misuse this rule and falsely state that we have a connection and deny or at least delay our getting a connection.


Nevertheless, I said ok. Seeing this, he said that they would come anytime during the weekdays between 9 AM to 5 PM for the inspection. Now, both me and my wife are working people and it would not be possible for us to be home on weekdays. So we asked him to at least specify which day they would come, or at least give a phone call before coming so we could be present when they came. He simply refused, clearly betraying his intention of harassing us. Finally my wife, a localite, convinced him to come before 11.30 AM.


Now I cannot leave for work till 11.30 AM for the entire next week. I just hope that they will come within the time they specified and will not harass us further. But even if they do, I am not going to give in to their illegal demands under any circumstances. I will complain to the following:




  • Dept. of Administrative Reforms and Public Grievances (https://pgportal.gov.in)




  • Consumer Protection Forum (https://core.nic.in), for violation under Monopolies and Restrictive Trade Practices Act)




  • Indane LPG helpline (Ph: 1800-2333-555)




  • Newspapers and news channels (through Citizen Journalist initiatives)






UPDATE: Two Weeks Later... A Happy Ending!


In the meantime, I contacted CNN-IBN Citizen Journalist and they responded positively to my appeal. But before my grievance could be televised, the Indane agency owner came to know about the whole thing from my colleague who happens to be her sister. So she had the inspection done promptly and the connection allotted without any problems!


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