Petrol pump show cause notice under Marketing Discipline Guidelines 2024 (MDG 2024): the timeline

Short answer

Under the Marketing Discipline Guidelines 2024 (MDG 2024), the oil companies' rules for their dealers, a show cause notice is issued within 30 days of the inspection, or within 30 days of the test results if samples were drawn, together with the reports it relies on MDG 8.5.6. The dealer has 10 days from the date of issue to reply MDG 8.5.7. A reasoned speaking order follows, preferably within 45 days of receiving the reply MDG 8.5.8. 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 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.

StepTime allowedClause
Show cause notice issuedWithin 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 itAll the reports and documents the notice rests onMDG 8.5.6
The dealer's reply10 days from the date the notice is issued, not from receiptMDG 8.5.7
Speaking orderThe 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 hearingBefore termination, for critical irregularitiesMDG 8.6
Fine, where it is the only actionWithin 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.

DateWhat happens
5 Oct 2026Inspection
20 Oct 2026The notice is issued with its reports. The latest date allowed was 4 Nov 2026 MDG 8.5.6.
28 Oct 2026The reply is sent and received. It was due by 30 Oct 2026 MDG 8.5.7.
12 Dec 2026The 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

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.
Petrol pump dealership termination under Marketing Discipline Guidelines 2024 (MDG 2024): the appealWhat MDG 2024 says about terminating a petrol pump dealership: who approves it, the 30-day window to appeal, who hears the appeal, and the 90-day target.
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.
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.

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