LPG Reforms: Abolish OTP system for delivery of domestic LPG cylinders? Mumbai High Court gave this verdict

• OTP system for delivery of LPG cylinders
• ‘Digital authentication mechanism’ to be abolished?
• What was the direction given by the Mumbai High Court

LPG Reforms: Since the start of the Iran-Israel conflict, the world has been facing shortages of crude oil and various natural gases, including LPG. In view of this situation, state-owned oil companies in India have implemented a ‘digital authentication system’ for distribution of 14.2 kg domestic LPG cylinders. Due to this decision, a large number of LPG consumers, especially those living in rural areas, are facing difficulties. Now, the Bombay High Court has given some directions. What exactly are the instructions”color: #3366ff;”> IPL Tax Rules: Rule of Income Tax also applies to foreign players; How much money is left in the pocket after the auction of crores?

What did the high court say?

The Nagpur bench of the Bombay High Court on Thursday issued a directive to the central government and public sector oil companies. The High Court said that they should consider the submissions made regarding maintaining the continuity of the offline LPG cylinder booking and delivery system. The court observed that although they have the option of continuing the Digital Authentication Mechanism, certain categories should be exempted from it.

Who has run to court?

LPG Distributors Association President Jayaprakash Tiwari has filed a petition in the Nagpur Bench of Bombay High Court. The petition states that the mandatory OTP verification system implemented by state-owned oil companies for distribution of LPG cylinders is causing serious problems. Connectivity in rural and remote areas is also a major problem, he argues. Furthermore, he noted that network failures, technical difficulties and website shutdowns frequently hinder customers from getting authentication codes. This causes delay or interruption in delivery of cylinders. Therefore, they suggested that an alternative to delivery authentication code system should be explored for distribution of domestic LPG cylinders.

Hearing on the petition completed

Hearing the petition, a bench comprising Justice Anil Kilor and Justice Raj Wakode directed the oil companies to take a decision on the submissions submitted by the association within three weeks. Subsequently, the petition was disposed of. During the hearing, advocate Shyam Ahirkar pointed out that the oil companies initially applied for ‘DAC’ certification for 50 per cent distribution. Subsequently, this limit was increased to 95 percent. Subsequently, a message was circulated through WhatsApp on April 4, 2026, mandating ‘DAC’ certification for 100 per cent LPG distribution. The message also warned that if cylinders are distributed without certification, action will be taken against the distributors.

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