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complaint/enquiry report for the purpose of lodging the FIR against the applicants under Section 3/7 of the Essential Commodities Act, 1955 for illegal storage of Biodiesel of about 2785 liters. On the basis of aforesaid complaint, the aforesaid FIR has been registered against the applicants vide Crime No. 77/2022 violated the provisions of Section 7 of the Petroleum Act, 1934; Clause

(xi) and (xii) of Guidelines for sale of Biodiesel for blending with high speed diesel for transportation purposes, 2019; Motor Spirit and High Speed Diesel (Regulation of Supply, Destribution and Prevention of Malpractices) Order, 2005; Clause 14 and 15 of the Notification dated 7.2.2020 bearing No. F4-4 (4-

6) 2018/29-1 issued by Madhya Pradesh Department of Food, Civil Supplies and Consumer Protection.

Learned Senior Counsel appearing for the applicants has submitted that Biodiesel is not an essential commodity defined under Section 2A of the Essential Commodities Act and does not fall within the purview of petroleum or petroleum product. Hence there is no applicability or any contravention of Motor Spirit and High-Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 (hereinafter referred to as Order 2005). Learned Senior Counsel has placed reliance in the judgment of Royal Energy Ltd. Vs. Indian Oil Corporation Ltd. reported in 2012 [SCC OnLine CCI 35; [2012] CCI 34] wherein the learned Competition Commission of India considered and analyzed the Order 2005 and various notifications issued regarding biofuels. Learned Senior Counsel has also relied on interim order dated 3.2.2015 passed by Bombay High Court in Writ Petition No. 3297 of 2014 ( My Own Energy Private Limited Vs. Union Bank of India) wherein it has been observed that Section 3(5) of the Order 2005 only covers petroleum products and no proceedings can be initiated for storage and handling of biodiesel since it does not fall within the definition of petroleum or petroleum products.

Clauses (xi) and (xii) of Guidelines for sale of Biodiesel for blending with high speed diesel for transportation purposes, 2019 read as under:-

"xi. All volume and safety distance norms applicable for Class B Petroleum Products shall be applicable for pumps selling Biodiesel as it is meant for blending with High Speed Diesel which is a Class B Petroleum Product.
xii. To ensure that the Retail Outlets of Biodiesel are selling only Biodiesel conforming to BIS Standards and not mixture of Biodiesel and Diesel or only Diesel, anti-adulteration cells of Public Sector Oil Marketing Companies along with State Government officials are empowered to inspect, search and seize unauthorized and unscrupulous Biodiesel manufacturing plaints, the storage and distribution units and Retails Outlets."
The allegation against the applicants is that they stored 2785 liters of Biodiesel for mixing it with High Speed diesel and as per Clause (xi) of Guidelines for sale of Biodiesel for blending with high speed diesel for transportation purposes, 2019 all volume and safety distance norms applicable for Class B Petroleum Products shall be applicable for pumps selling Biodiesel as it is meant for blending with High Speed Diesel which is a Class B Petroleum Product.Section 7(i) of the Petroleum Act, 1934 provides that a person need not obtain a licence for the transport or storage of petroleum Class B if the total quantity in his possession at any one place does not exceed two thousand and five hundred litres and none of it is contained in a receptacle exceeding one thousand litres in capacity.