Major Crackdown on LPG Black Marketing in Coimbatore
In a significant enforcement action targeting illegal hoarding and profiteering, authorities in Coimbatore have conducted a major raid resulting in the seizure of 1,000 commercial LPG cylinders and the arrest of the gas agency owner involved. The operation was launched to curb black marketing activities that were exploiting the ongoing LPG supply crisis.
Arrest and Charges Under Essential Services Act
The arrested individual has been identified as S Karthikeyan, 33, a resident of Lakshmi Mills who had been operating LPG distribution services for approximately three years. He has been formally booked under the Essential Services Maintenance Act (ESMA), a legislation designed to prevent disruptions in critical supplies. Police have remanded Karthikeyan into judicial custody and are actively pursuing three additional suspects linked to the case.
Details of the Raid and Seizure
Acting on specific intelligence inputs, a joint team comprising officials from Indian Oil Corporation and Bharat Petroleum, alongside the Civil Supplies CID police, executed a surprise raid at Shanthi Energies located on Vinayagar Kovil Street near Lakshmi Mill Junction along Avinashi Road. During the inspection, authorities discovered and confiscated 1,000 filled commercial cylinders that were being stored at a single location, far exceeding permissible limits. Following the seizure, revenue officials moved swiftly to seal the gas agency premises to prevent further illegal activities.
Exploitation of LPG Crisis and Price Gouging
Investigations reveal that unscrupulous traders were capitalizing on the prevailing LPG shortage by hoarding commercial gas cylinders and selling them on the black market at exorbitantly inflated prices. While the official price for a commercial cylinder is fixed at ₹2,100, reports indicate that these same cylinders were being illegally sold for between ₹4,500 to ₹5,000, effectively more than doubling the cost and burdening businesses and consumers. This crackdown underscores the authorities' commitment to maintaining supply chain integrity and protecting consumers from predatory pricing practices during times of crisis.
