Rs. 40 lakh scam in LPG sector

KOCHI: A Rs. 40-lakh scam is under way in the LPG sector in Kochi.  Even when agencies and middlemen are having a field day selling thousands of LPG cylinders in the black market, the authorities are standing as mute spectators.  The grey market of domestic LPG cylinders in the city is flourishing with about 15 to 20 cylinders being diverted from a single agency every alternative day. An amount of not less than Rs. 40 lakh is being amassed by the distributors and middlemen a month as part of the illegal diversion of the cylinders. As per a rough estimate, about 15,000 cylinders are being diverted to the grey market from as many as 50 gas distributors in the city at an extra cost of Rs. 250 for every refill.   Even after ‘Express’ exposing the mafia link behind the LPG cylinders two weeks ago, the authorities seem to be playing dumb. District Collector P I Sheik Pareeth had told Express two weeks ago that stringent action would be taken against those who were involved in the illegal distribution of LPG cylinders. He had also said that raids would be held more frequently in the hotels and also at the gas agencies which are involved in the diversion of LPG cylinders.   However, Express found that nothing tangible has happened so far and the authorities are still in a deep slumber. Meanwhile, Sheik Pareeth claimed that raids were intensified and various squads were monitoring the flow of cylinders in the grey market.  Civil Supplies Department director M S Jaya said the Supplyco’s Vigilance team had been  alerted after the Express exposure. “The monitoring is a continuous process and a regular feedback is being received about the activities of the racketeers,” she said adding that the complaints regarding diversion of cylinders had been received from Kakkanad area. “Strict monitoring is being done,” she said.  Meanwhile, the representatives of the oil companies said they had not got any specific complaints from any consumers.  BPCL territory manager Manoj K said they had been monitoring the situation closely. “Once we get a specific complaint regarding a particular gas agency, then there is no doubt that action would be taken immediately. But we have not received any specific complaints yet,” he said.   Two weeks ago, Express had  exposed that a mafia had popped up in the city which was into diverting  LPG cylinders meant for household purposes to the black market.  The racket supplies LPG cylinders meant for households to commercial purposes, mainly to hoteliers and autorickshaw operators.