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MDG 2024 questions and answers, part 3: records, inspections and penalties

Short answer

Short answers to dealer test questions on records, inspections and penalties under the Marketing Discipline Guidelines 2024 (MDG 2024). Registers and bills are kept for this and the previous financial year, the inspection record for five years MDG 5.1.12. A show cause notice is due within 30 days of the inspection, or of the test results if samples were drawn MDG 8.5.6. Where a fine is the only action, an unpaid fine leads to suspension from the 31st day MDG 8.7. Irregularities found together are each counted MDG 8.5.3.

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 31 October 2026. Published by MDG Services on 31 October 2026.

Records

What records must a petrol pump keep, and for how long?

The daily sales register, density register, maintenance records, purchase invoices and sales bills for this and the previous financial year, and the inspection record for the previous five years. Also the licences the outlet needs MDG 5.1.12. See records to keep.

What must be kept in a file at the outlet?

Inspection reports, the oil company's letters, test reports and invoice copies, ready for reference at all times MDG 1.5(iv).

Records since the last inspection are all there, but older ones are missing. Which class is that?

Minor, with a warning-cum-guidance letter at the first instance MDG 8.4. If the records since the last inspection are missing, it is major, with 15 days' suspension at the first instance MDG 8.3.

Inspections

Who can draw samples at an outlet?

Oil company officials, mobile labs, agencies the oil company authorises, any authority the law empowers, and joint industry teams MDG 2.2.2.2 MDG 2.4.3. See who can inspect.

Can a dealer refuse an inspection or sampling?

No. Refusing or obstructing either is a major irregularity MDG 5.1.8: 15 days' suspension at the first instance, 30 days at the second, termination at the third MDG 8.3.

How many service points does an inspector mark YES or NO?

Twenty, in the circular of 20.03.2025 Circular 20.03.2025. A lapse draws the action for minor irregularities MDG 5.1.18. See the 20 service points.

Notices, fines and hearings

Show cause notice reply time: what must the notice and the final order contain?

The notice lists every irregularity and comes with its reports, within 30 days of the inspection, or of the test results where samples were drawn MDG 8.5.6, and the reply is due 10 days from issue MDG 8.5.7. The final order gives the irregularities, the reply and the reasons, preferably within 45 days of the reply MDG 8.5.8. See the show cause timeline.

Two irregularities are found together. How are they counted?

Each counts as an instance in its own class and draws its own action MDG 8.5.3, while the miscellaneous minor items in 8.4 count as one irregularity MDG 8.4. MDG does not say how the two fit; ask your oil company.

A fine is not paid. What happens?

For a fine with no suspension attached, the dealer has 30 days from the company's notice; from the 31st day sales and supplies are suspended for 15 days. If still unpaid, the suspension runs 15 days more; if the fine is still unpaid then, the dealership is terminated MDG 8.7. See unpaid fines.

Is there a hearing before termination?

For critical irregularities, yes: the dealership's signatories or their nominees are heard before termination is recommended or approved. After a missed date they get one more chance, then the case can go ahead without them MDG 8.6.

Other parts: part 1 and part 2.

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

Questions dealers ask

01How many instances lead to termination in MDG?

Critical: the first instance MDG 8.2. Major: the third, or the second where normal fuel was sold as branded fuel MDG 8.3. Minor: not on its own ladder, though an unpaid fine can end in termination MDG 8.4 MDG 8.7, and the oil company may act harder once the irregularity is established MDG 8.5.1 MDG 8.5.2. Instances are counted over five years, including the previous guideline MDG 8.5.5.

02What is the MDG minor irregularity penalty?

A warning-cum-guidance letter first, then Rs 10,000 per irregularity, then Rs 25,000 per irregularity from the third time on MDG 8.4. These are minimum amounts MDG 8.5.1.

03Can a dealer appeal against a suspension or a fine?

MDG's appeal is for termination only, within 30 days of receiving the order MDG 8.9. It sets out no separate appeal for a suspension or a fine. For your own order, speak to an advocate or your oil company.

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

Related pages

MDG 2024 questions and answers: stock, nozzle, density and penalty limitsShort answers, with figure and clause, to what dealers are asked in training and tests: tank variation, HSD handling loss, nozzle limit, density, penalties.
MDG 2024 questions and answers, part 2: density, samples and qualityPart 2 of the dealer test questions on MDG 2024: density records, samples, filter paper, water dip and the mobile lab, each with its figure and clause.
MDG guidelines for a petrol pump: MDG 2024 in ten pointsThe Marketing Discipline Guidelines 2024 (MDG 2024) in ten points, ordered by a petrol pump dealer's day, each with its key figure, clause and page.
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.

About Dealer Kavach (advertisement)

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About this page. This page is a plain-language explanation published by MDG Services, a brand of VRUOOM PRIVATE LIMITED (CIN U29194HR2021PTC098450). It is general information, offered free of charge. It is not the official text of any rule.

Not connected with the oil companies or the government. MDG Services is a private company. It is not connected with, approved by, endorsed by, or acting for Indian Oil Corporation Limited (IndianOil), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL) or any government body. Our name shares letters with the short form "MDG" that the oil companies use for their Marketing Discipline Guidelines. That does not mean any link with them.

Names and marks. IndianOil, BPCL, HPCL and the names of their documents belong to their owners. We write them only to say whose rules we are explaining.

Check the official source. The Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) and related circulars are issued by the oil companies. Rules, amounts and dates can change, and amendments may reach dealers directly without being public. Before you act, read the current documents on the oil companies' own websites (iocl.com, bharatpetroleum.in, hindustanpetroleum.com) and ask your own oil company's officer. If this page and the official document differ, the official document is the one to follow.

What the amounts mean. Amounts in the guidelines are the minimum action. The oil company may take higher action, up to ending the dealership. Do not treat any amount shown here as your full exposure.

Court and Parliament items. Where we mention a court order or a statement in Parliament, we report what was said on the date shown. It is not the rule for your outlet, and the position may have changed since. Your dealership agreement and the oil company's current guidelines decide.

Not legal advice. This is general information, not legal advice. For your own notice, reply or appeal, speak to an advocate or your oil company. Examples use made-up outlets.

Last checked. The "checked" date shows the day we last compared this page with the official documents. It does not promise that nothing has changed since.

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