Indian Oil Corporation Limited Reconstitution Policy for Contracts & Dealerships
The policies of Indian Oil Corporation Limited (IOCL) and other Oil Marketing Companies (OMCs) allow for the transfer or reconstitution of dealership agreements and Letters of Intent (LOIs) to legal heirs primarily in cases of death or total incapacitation of the original holder. Under specific guidelines by the Ministry of Petroleum & Natural Gas, reconstitution at the LOI stage is largely restricted, except under these circumstances. Legal heirs must meet dealer eligibility criteria, with provisions for age and education relaxed. The process involves application within defined timelines, eligibility scrutiny, and requires various supporting documentation. Transfers must be completed within six months.
Reconstitution / Transfer of IOCL–OMC Dealerships & LOIs
Update: 27th January 2026
(On Death or Incapacitation of the Dealer / LOI Holder)
As per the policies of Indian Oil Corporation Limited (IOCL) and other Oil Marketing Companies (OMCs), transfer or reconstitution of a dealership, tender contract, or Letter of Intent (LOI) in favour of legal heirs is permitted only under specified conditions, primarily in cases of death or total and permanent incapacitation of the original dealer/LOI holder.
These policies are governed by the Reconstitution Guidelines issued by the Ministry of Petroleum & Natural Gas (MoP&NG) and subsequent amendments adopted on an industry-wide basis.
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1. Reconstitution at LOI Stage
A. Applicability
Reconstitution at the LOI stage is generally not permitted, except in cases involving:
- Death of the LOI holder, or
- Total and permanent incapacitation due to serious illness or accident.
B. Time Limits
- Intimation letter to legal heirs: Within 10 days of receiving information.
- Time to apply: 30 days, extendable by another 30 days.
- Transfer of LOI to be completed within 6 months from the date of vacancy.
2. Eligibility of Legal Heirs
A legal heir may be considered for transfer/reconstitution subject to the following:
- Must meet general dealer eligibility norms applicable at the time of original selection.
- Relaxation permitted in:
- Age (minimum age: 18 years)
- Educational qualification (must be able to read, write, and count)
- Minor legal heir:
- A local guardian may operate the dealership until the heir attains majority.
- Multiple dealership norms apply, except where specific relaxations are provided.
3. Cases Based on Investment Status
A. Where Substantial Investment Has Been Made
(Substantial investment includes availability of suitable land and land development)
- LOI may be transferred directly to the legal heir.
- In partnerships, reconstitution with the legal heir is permitted.
- Legal heir is interviewed for suitability.
- No fresh evaluation vis-à-vis empanelled candidates required.
B. Where Substantial Investment Has NOT Been Made
- Legal heir’s candidature is evaluated against the next empanelled candidate.
- Fresh merit list prepared after interview and evaluation.
- Earlier LOI is cancelled and a fresh LOI issued upon approval.
4. Reconstitution Under 2014 Dealer Selection Guidelines
For selections made under guidelines effective 21.05.2014:
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- Reconstitution at LOI stage allowed only in death/incapacitation cases.
- Fresh LOI issued after cancellation of earlier LOI.
- Legal heir must accept all original LOI terms including land, finance, and bidding obligations.
- Transfer must still be completed within six months.
5. Reconstitution of Commissioned Dealerships
A. General Principles
- Induction of minority partners permitted after 5 years of commissioning.
- Subsequent reconstitution allowed only after 5 years from the last reconstitution.
- Sole proprietor may resign after 10 years, subject to transfer to family members.
B. Death of Dealer / Partner
- Sole proprietorship: dealership may be transferred to legal heir.
- Partnership: reconstitution with legal heirs and surviving partners.
- If no willing legal heir exists, dealership may be terminated.
C. Incapacitation
- Minority partner may be inducted in cases of permanent disability.
- Medical certification from CMO or Government-recognized Medical Board required.
6. SC/ST Dealerships
- Induction of an outside-category minority partner permitted up to 25% share, subject to:
- SC/ST partners retaining at least 75% shareholding.
- Incoming partner meeting financial and eligibility norms.
- Non-SC/ST spouse of SC/ST dealer is counted as SC/ST share.
7. Fees
A. Application Processing Fee
- ₹25,000 (non-refundable)
- Exemptions apply when:
- Legal heir holds the same share as the deceased.
- SC/ST and Corpus Fund category dealerships.
B. Reconstitution Fee
- Equivalent to prevailing security deposit.
- Exemptions apply in:
- Induction of family members.
- Death/incapacitation cases with same shareholding.
- SC/ST category reconstitutions.
8. Procedure
- Submission of application to Divisional/Territory/Regional Office.
- Acknowledgement with unique docket number.
- Scrutiny of documents and eligibility.
- Personal appearance and verification of parties.
- Grant of “in-principle approval”.
- Execution of revised agreement within 60 days.
9. Timelines & Grievance Redressal
- Applications should be disposed of preferably within 90 days.
- Grievances may be addressed to the Head of the State/Regional/Zonal Office, to be resolved within one month.
10. Mandatory Affidavits & Documents
- Death Certificate / Incapacitation Certificate.
- Succession Certificate / Legal Heir Affidavit.
- No Objection Certificates / Relinquishment Deeds (where applicable).
- Standard notarized affidavit confirming nationality, age, non-conviction, and dealership norms.
- Probated Will (if applicable).
IOCL/OMC policies do permit transfer or reconstitution of LOIs and dealerships in favour of legal heirs, but only within a tightly regulated framework, with strict timelines, eligibility verification, and procedural compliance.
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