Checked against the Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) on 15 October 2026. Published by MDG Services on 17 October 2026.
The clock, step by step
No action can be taken against a dealer until the irregularity is established MDG 8.5.2.
| Step | Time allowed | Clause |
|---|---|---|
| Show cause notice issued | Within 30 days of the inspection, or of the test results if petrol or diesel samples were drawn. It lists all the irregularities. | MDG 8.5.6 |
| What comes with it | All the reports and documents the notice rests on | MDG 8.5.6 |
| The dealer's reply | 10 days from the date the notice is issued, not from receipt | MDG 8.5.7 |
| Speaking order | The reasoned decision: the irregularities, the reply, and why it is or is not accepted. Preferably within 45 days of receiving the reply. | MDG 8.5.8 |
| Personal hearing | Before termination, for critical irregularities | MDG 8.6 |
| Fine, where it is the only action | Within 30 days of the company's notice. See unpaid fines. | MDG 8.7 |
An illustration with made-up dates
For example, an inspection on 5 October 2026 draws no samples.
| Date | What happens |
|---|---|
| 5 Oct 2026 | Inspection |
| 20 Oct 2026 | The notice is issued with its reports. The latest date allowed was 4 Nov 2026 MDG 8.5.6. |
| 28 Oct 2026 | The reply is sent and received. It was due by 30 Oct 2026 MDG 8.5.7. |
| 12 Dec 2026 | The speaking order is passed, preferably by this date: 45 days after the reply is received MDG 8.5.8. |
MDG does not say how the days are counted.
Before the notice, and the hearing
Some findings stop sales on the spot while samples are tested MDG 5.1.9 MDG 5.1.11: see failed samples. For a toilet finding, clause 5.1.14(b) adds an instant letter, and MDG does not say whether it replaces the notice MDG 5.1.14(b).
Where a critical irregularity may lead to termination, the head of the State office, State Office (Retail) or Zonal office, or a nominee, hears the dealership's signatories or their nominees first. If they miss the date, one more is given, then the case can go ahead without them (ex parte) MDG 8.6. Clause 8.6 speaks of critical irregularities only. The appeal in clause 8.9 is for termination only: see the appeal page MDG 8.9.
General information, not legal advice. For your own notice, speak to an advocate or your oil company.
Questions dealers ask
01How many days does a dealer get to reply to a show cause notice under MDG?
10 days from the date the notice is issued MDG 8.5.7. MDG counts from issue, not from the day the notice reaches the dealer.
02Within how many days must the oil company issue a show cause notice?
Within 30 days of the inspection, or of the test results if samples were drawn. The notice lists all the irregularities and comes with the reports it rests on MDG 8.5.6.
03What is a speaking order?
It is the oil company's reasoned decision after it reviews the charges and the dealer's reply, passed preferably within 45 days of receiving the reply MDG 8.5.8.
04Is there a fixed format for a show cause notice reply for a petrol pump?
MDG 2024 gives no format for the reply. It fixes only the 10 days to reply MDG 8.5.7. For your own notice, speak to an advocate or your oil company.
05Does the dealer get a personal hearing before termination?
For critical irregularities, yes, before termination is recommended or approved. A missed date is followed by one more chance MDG 8.6.
Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).
Related pages
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