Petrol pump dealership termination under Marketing Discipline Guidelines 2024 (MDG 2024): the appeal

Short answer

Under the Marketing Discipline Guidelines 2024 (MDG 2024), the oil companies' rules for their dealers, a dealer can appeal a termination within 30 days of receiving the order. The appeal is addressed to the Appellate Authority and sent through the oil company's divisional, territory or regional office; the aim is a decision, preferably within 90 days of filing MDG 8.9. Who hears it depends on who approved the termination and whether the dealership is SC/ST MDG 8.9. The appeal covers termination only. This is general information, not legal advice.

The Marketing Discipline Guidelines 2024 (MDG 2024) are the oil companies' rules for their dealers, and bind dealers through the dealership agreement. This page is a plain-language explanation by MDG Services (a brand of VRUOOM Private Limited). It is not the official text and is not connected with or approved by IndianOil, BPCL, HPCL or any government body, so please check the current guidelines and circulars on the oil companies' own websites and with your oil company officer before you act.

Checked against the Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) on 15 October 2026. Published by MDG Services on 21 October 2026.

When MDG brings termination

The notice, the reply and, for critical irregularities, a hearing come first: see the show cause timeline. For a petrol pump dealer, MDG itself names termination in three places:

  • A critical irregularity, at the first instance MDG 8.2.
  • A major irregularity, at the third instance, or the second for selling normal fuel as branded fuel MDG 8.3.
  • A fine left unpaid through the extended suspension MDG 8.7.

See the penalty pages.

Who approves the action

ActionWho approvesClause
Termination, and every critical irregularityThe Regional, State or Zonal head of the oil company, General Manager level or aboveMDG 8.8(i)
Termination of an SC/ST dealershipThe Director (Marketing) at Head OfficeMDG 8.8(i)
A major irregularityIndianOil: the State Retail Head. BPCL and HPCL: an authorised officer of Deputy General Manager rank or above, at State, Region or Zonal levelMDG 8.8(ii)
A minor irregularityThe head of the Territory, Regional or Divisional officeMDG 8.8(iii)

The appeal

The dealer appeals within 30 days of receiving the termination order. The appeal is addressed to the Appellate Authority and sent through the divisional, territory or regional office MDG 8.9.

CaseAppellate AuthorityClause
Not SC/ST; approved below ED rank in the State OfficeThe ED (Retail) at Head Office, or another ED-level officer there whom the company nominatesMDG 8.9
Not SC/ST; approved by an ED-rank officer in the State OfficeA committee of 2 EDs whom the company nominatesMDG 8.9
An SC/ST dealershipA committee of two Directors other than the Director (Marketing)MDG 8.9

For example, an order received on 10 November 2026 leaves until 10 December 2026 to file. MDG does not say how days are counted.

What MDG 2024 leaves open

  • It gives no appeal form and does not list the papers to attach.
  • Clause 8.9 speaks of termination only. It sets out no separate appeal for a suspension or a fine MDG 8.9.

General information, not legal advice. For your own notice, speak to an advocate or your oil company.

Questions dealers ask

01Can a petrol pump dealer appeal against termination under MDG, and within how many days?

Yes. Where MDG is invoked to terminate a dealership, the dealer can appeal within 30 days of receiving the order, through the divisional, territory or regional office MDG 8.9.

02Who hears the appeal against termination of a petrol pump dealership?

Not SC/ST: the ED (Retail) at Head Office or another ED-level officer there if the approver ranked below ED in the State Office, or a committee of 2 EDs if an ED-rank officer in the State Office approved. SC/ST: a committee of two Directors other than Director (Marketing) MDG 8.9.

03How long does an appeal against termination take?

The aim is a decision preferably within 90 days of filing at the divisional, territory or regional office. "Preferably" makes this a target, not a fixed deadline MDG 8.9.

04Does an appeal stop the termination?

MDG 2024 does not say whether the termination stays in force while an appeal is pending. For your own order, speak to an advocate or your oil company.

05Does MDG cover petrol pump lease termination?

MDG 2024 deals with termination of the dealership for irregularities and does not mention land or premises leases. A lease follows its own agreement and the law.

Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).

Related pages

Petrol pump show cause notice under Marketing Discipline Guidelines 2024 (MDG 2024): the timelineWhat MDG 2024 says follows an irregularity: a show cause notice within 30 days, 10 days to reply, a speaking order and a hearing before termination.
Penalties under the Marketing Discipline Guidelines 2024 (MDG 2024): what each irregularity costsWhat a petrol pump dealer faces under the Marketing Discipline Guidelines 2024 for a critical, major or minor irregularity, and how sales get stopped.
Repeat offences under MDG 2024: how a second or third instance is countedHow the Marketing Discipline Guidelines 2024 count a second or third instance over five years, and what follows when several irregularities come together.
Petrol pump inspection: who checks, what they check, what followsWho can inspect a petrol pump, what a visit can cover, why a dealer cannot refuse, and what comes next: samples, lab results and a show cause notice.

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