Back
Blows Lid Off Fake NOC Petrol Pump Scam, Hands Probe to CBI
In a scathing indictment of a state police investigation gone awry, the has ordered the to take over the probe into a sprawling racket peddling forged No Objection Certificates (NOCs) for petroleum retail outlets across Tamil Nadu and Pondicherry. Delivered by Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan on , the ruling in WP No. 19983 of exposes how over 90 fake NOCs—allegedly bearing forged seals and signatures—fooled regulators into issuing explosive licenses to major oil firms like , , , and .
From to Explosive Exposé
The saga began in during hearings in petitions (HCP Nos. 565 and 589 of ), where the court uncovered fake NOCs purportedly from the and district authorities. These documents were being used to secure licenses for CNG, LPG, and petrol outlets. Shocked by the scale—91 outlets initially flagged—the bench directed police inquiries, FIRs, and reports from the .
Petitioner V.B.R. Menon, appearing in person, filed this writ under in , demanding cancellation of all such licenses issued to respondents 4-7 (the oil companies) and criminal action against PESO's Chennai office for lax verification. Menon referenced court orders from , highlighting how a racket charged hefty sums (up to ₹3 lakhs per beneficiary) for these forgeries.
Police FIRs followed in Chennai, Erode, and Dindigul, with cases transferred to the . Four charge-sheets were filed, nabbing forgers like K.L. Sivakumar, but progress stalled on the end-users.
Petitioner's Firepower vs. Respondents' Deflections
Menon argued that oil majors and PESO blindly accepted photocopies without verifying originals, violating , which mandate District Authority NOCs post-site inspection. He pointed to confessional statements showing beneficiaries directly paid racketeers, bypassing official channels—clear evidence of conspiracy under .
PESO and oil companies countered that they relied in good faith on submitted NOCs, unaware of forgeries. Police status reports claimed action against forgers and two Erode/Dindigul beneficiaries (Sathyaraj and Murugan, now under stay via Cr.O.P.), but the court smelled protectionism.
"No fair investigation is being carried out, to save those beneficiaries,"
the bench noted, frustrated by repeated adjournments and vague affidavits.
Why the Court Lost Patience: A Probe Adrift
Judges dissected the racket's mechanics: Agents contacted aspiring outlet owners, pocketed cash, forged NOCs mimicking official inspections (impossible without site visits), and handed them over for PESO licensing. About 97 fakes unearthed, 27 licenses cancelled via court prodding—but beneficiaries largely escaped scrutiny.
Citing the Supreme Court's
, the bench invoked its
powers for CBI handover in "exceptional situations" where local probes lack credibility.
"The investigating agency has registered offences only against those who are involved in preparing fake no objection certificates,"
it observed, ignoring
conspirators who "paid huge amounts."
Key Observations
"We are at a complete loss as to how such no objection certificate could be issued when no such inspection had ever been conducted by the responsible authorities... the beneficiaries... had personal knowledge that no inspection of their site had taken place."
"Bare facts... show that these beneficiaries were in direct connect with the fake no objection certificate racket and they were directly meeting them and paying them huge amounts."
"The manner in which the investigation has been held... is not in proper direction."
CBI Enters the Fray: A New Chapter for Justice and Safety
The court directed CBCID's Additional Director General to hand over all files to CBI's Director, with Union counsel communicating the order. The writ stands disposed, no costs.
This ruling fortifies public safety—fake NOCs bypassed safety checks for hazardous outlets—and sets a precedent for judicial intervention in biased probes. Future licensing may demand digital verification, as hinted in earlier hearings. Tamil Nadu's fuel retail landscape braces for upheaval, with potential license revocations and prosecutions awaiting CBI's deeper dive.
