The Distributors Federation of India ( LPG operating throughout the country has strongly opposed the decision of management of Hindustan Petroleum Corporation Limited (HPCL) to charge exorbitant interests on payments due from them under new credit policy.
In a joint letter sent to the Ministry of Petroleum and Natural Gas the Distributors Federation has urged the Union Petroleum and Natural Gas Minister to direct the HPCL management to immediately withdraw its credit policy and reimburse the interest already charged from the distributors.
In a press statement General Secretary of the Federation Manoj Nangia said, “Under the new credit policy of the HPCL the distributed are charged high interest of 18 percent or Rs 1500 daily on pending amount of Rs 25000 and 24 percent or Rs 5000 daily on pending amount above Rs 20 lakhs, which is quite high.”
The Federation said, “The new credit policy of the HPCL distributor will work out to be 2105 .77 percent per annum a pending amount of Rs 26000 and 86.90 percent per annum on a pending amount of Rs 21 lakhs, reminding the old days of money lenders exploitation.”
