Checked against the Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) on 15 October 2026. Published by MDG Services on 20 October 2026.
The five-year look-back
To place a new finding on a ladder, the oil company looks at the five years before the date the irregularity is established. Any earlier instance in that window counts, including one under the previous guideline MDG 8.5.5. The ladders are on the penalties page.
Illustration: a made-up outlet is found without the reference density figure, established on 9 March 2026, so the look-back starts from 9 March 2021. The irregularity is major in both MDG 2012 (Ver. 7, 30.11.2022) and MDG 2024 MDG 2012 8.3 MDG 8.3, and every earlier finding is assumed to be the same irregularity.
| Earlier findings | Inside the five years? | This finding is | Action (standard major ladder) |
|---|---|---|---|
| None | n/a | First instance | 15 days' suspension MDG 8.3 |
| 2 February 2021 | No, more than five years back | First instance | 15 days' suspension MDG 8.3 |
| 18 June 2023 (under MDG 2012) | Yes | Second instance | 30 days' suspension MDG 8.3 |
| 18 June 2023 and 14 January 2024 (both under MDG 2012) | Both | Third instance | Termination MDG 8.3 |
MDG words the cycle as running "starting from the date of first irregularity" and then restates it as a look-back MDG 8.5.5. This page follows the look-back. If your case turns on the exact start, ask your oil company.
Several irregularities found together
When several irregularities are found together at one outlet, each is counted as an instance in its own class, and each draws its own action. MDG calls this a compounding effect MDG 8.5.3. Separately, 8.4 counts the miscellaneous minor items as one irregularity when action is decided MDG 8.4. MDG does not say how the two fit, and gives no worked case. Ask your oil company how it would count yours.
A fine that is not paid is a different matter: see unpaid fines.
General information, not legal advice. For your own notice, speak to an advocate or your oil company.
Questions dealers ask
01What does second instance mean in MDG?
The new irregularity is the second instance when the oil company finds one earlier instance in the five years before the date it is established MDG 8.5.5. The second step of the ladder then applies MDG 8.3 MDG 8.4.
02How many years are counted for a second or third instance?
Five, counted back from the date the new irregularity is established MDG 8.5.5.
03Do irregularities under the old MDG count as instances?
Yes, when they fall inside the five-year window. MDG 2024 counts irregularities under the previous guideline in that window as instances MDG 8.5.5.
04What if two irregularities are found together at a petrol pump?
Each is counted as an instance in its own class, and each draws its own action MDG 8.5.3. How this fits with 8.4, which counts the miscellaneous minor items as one irregularity, is not stated, so ask your oil company MDG 8.4.
05Must the earlier instance be the same irregularity?
MDG does not say whether an earlier instance must be the same irregularity or only the same class. Ask your oil company. The example here assumes the same irregularity each time.
Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).
Related pages
About Dealer Kavach (advertisement)
Dealer Kavach is an app from MDG Services that tracks your outlet's filings, renewals, inspections and daily reports, and reminds you before deadlines, in Hindi and English.