BENGALURU: The Karnataka High Court directed oil marketing companies (OMCs) -- Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd and Indian Oil Corporation Ltd to consider the representation seeking enhancement of the allocation in the supply of ethanol within four weeks.
Allowing the petition filed by M/s Vinp Distilleries and Sugars Pvt Ltd, Haveri district, seeking directions to OMCs to consider the representation dated October 27, 2025, Justice M Nagaprasanna said the petitioner becomes entitled to issuance of a writ of mandamus directing OMCs to act in consonance with Clause 6.8 of the agreement, particularly when they themselves invoked Clause 6.8 to enhance procurement from 1.44 crore litres to 3.92 crore litres.
There cannot be selective or partial invocation of Clause 6.8 by denying 9.90 crore litres as sought for. If such conduct were to be countenanced, operation of the clause would be reduced to the whims and fancies of OMCs, an eventuality wholly antithetical to law, he said.
The petitioner was established exclusively for supplying ethanol to OMCs. The OMCs notified a tender in August 2021 for entering into long-term offtake agreements with dedicated ethanol plants in ethanol-deficit states, and the bids were opened in September of the same year.
In March 2023, the OMCs issued a second expression of interest to sign LTOAs in some states. In September 2025, a tender was floated inviting bids by OMCs for the supply of 1,050 crore litres of denatured anhydrous ethanol for ethanol supply year 2025-26. Through an e-mail on October 17, 2025, it was communicated that the petitioner was allotted a quantity of only 3.92 crore litres of ethanol against the allocation in the bid of 9.26 crore litres.
