The Nagpur bench of the Bombay High Court on Thursday directed the Union government and public sector oil companies to consider a representation seeking the continuation of offline LPG cylinder booking and delivery systems alongside mandatory digital authentication mechanisms.
Petition Challenges Mandatory DAC System
The direction came while hearing a petition filed by the LPG Distributors Association (India), which challenged the compulsory implementation of the Delivery Authentication Code (DAC) system for domestic LPG cylinder distribution. The petition, filed by association president Jayprakash Tiwari, argued that the mandatory OTP-based delivery system was creating serious operational difficulties for distributors and consumers, particularly in rural and low-connectivity regions.
Court Order and Timeline
A division bench comprising Justices Anil Kilor and Raj Wakode disposed of the petition after directing the authorities to take a decision on the association's representation within three weeks. According to the plea filed through counsel Shyam Ahirkar, oil companies initially implemented DAC authentication for 50% of deliveries before increasing it to 95%. Subsequently, a message circulated through WhatsApp on April 4, 2026, made DAC mandatory for 100% of LPG deliveries, warning distributors of action if cylinders were supplied without authentication.
Consumer Challenges Highlighted
The petitioners contended that not every consumer possesses a mobile phone or understands OTP-based verification systems. They further argued that network failures, technical glitches, and website disruptions frequently prevent customers from receiving authentication codes, delaying or halting cylinder distribution. The association also claimed that between March 8 and 17, described in the petition as a "blackout period," major discrepancies emerged between physical stock and online inventory records, affecting booking and delivery data.
The petition sought directives to oil companies to retain the offline booking mechanism by allowing consumers to directly visit agencies and obtain cylinders without exclusive dependence on digital authentication systems.
