Section 28 of The Petroleum and Natural Gas Regulatory Board Act, 2006
In case any complaint is filed before the Board by any person or if the Board is satisfied that any person has contravened a direction issued by the Board under this Act to provide access to, or to adhere to the transportation rate in respect of a common carrier, or to display maximum retail price at retail outlets, or violates the terms and conditions subject to which registration or authorisation has been granted under section 15 or section 19 or the retail service obligations or marketing service obligations, or does not furnish information, document, return of report required by the Board, it may, after giving such person an opportunity of being heard in the matter, by order in writing, direct that, without prejudice to any other penalty to which he may be liable under this Act, such person shall pay, by way of civil penalty an amount which shall not exceed one crore rupees for each contravention and in case of a continuing failure with additional penalty which may extend to ten lakh rupees for every day during which the failure continues after contravention of the first such direction: Provided that in the case of a complaint on restrictive trade practice, the amount of civil penalty may extend to five times the unfair gains made by the entity or ten crore rupees, whichever is higher.
Summary
- The Board can impose civil penalties on entities that ignore its directions, fail to display retail prices, violate registration or authorization terms, or refuse to provide required information.
- The Board cannot impose these penalties without giving the accused person a proper opportunity to be heard.
Practical examples
FAQ
1. Can the Board issue a penalty without any warning?
No, the Board is legally required to give the person an opportunity to be heard before directing them to pay a civil penalty.
Test yourself
Q1.Under Section 28 of The Petroleum and Natural Gas Regulatory Board Act, 2006, a penalty can be issued for violating terms of registration granted under Section 15. According to Section 15 of The Petroleum and Natural Gas Regulatory Board Act, 2006, what type of activity requires this registration?
Q2.Under Section 28 of The Petroleum and Natural Gas Regulatory Board Act, 2006, a penalty applies if an entity violates an authorisation granted under Section 19. Under Section 19 of The Petroleum and Natural Gas Regulatory Board Act, 2006, what does this authorisation allow an entity to do?
Q3.Under Section 28 of The Petroleum and Natural Gas Regulatory Board Act, 2006, what is the maximum standard civil penalty the Board can impose for a single contravention of its directions?
Q4.Under Section 28 of The Petroleum and Natural Gas Regulatory Board Act, 2006, how is the maximum penalty calculated for a complaint concerning a restrictive trade practice?