JOIN USThe High Court of Karnataka on Wednesday directed the State government to implead in the petition, filed by Indian Oil Corporation Limited (IOCL), challenging the MoU signed between Karnataka State Road Transport Corporation and Bharat Petroleum Corporation Limited (BPCL) with regard to the supply of high-speed diesel (HSD) to KSRTC, BMTC and two other transport corporations.
The petitioner IOCL had contended that despite exemption granted by the State government to procure HSD from four other oil companies, the State government has gone ahead inviting quotations and entering into an MoU with BPCL.
The IOCL had entered into an agreement with KSRTC and three other transport corporations with regard to supplying of HSD for the past 30 years and later sought exemption to procure fuel from other companies as well, to which the State government had issued a notification in May 2015. The petitioner further contended that they have already constructed bunks to store HSD at a cost of Rs 48 crores.
The petitioner has sought for quashing of the MoU between the State government and the BPCL and to consider the exemption granted to them.
KSRTC in their defense has contended that despite asking IOCL to reduce the price, they had not reduced the same and hence the corporation invited quotations from other companies and MoU was signed.
Justice Anand Byrareddy sought information with regard to the State government’s understanding about exemption granted by them to IOCL and adjourned the hearing till November 09.