Assam News

Bank-funded enterprise runs illegally on AOD land near Digboi Refinery

A serious case of alleged regulatory failure and unauthorized commercial activity has come to light in Digboi's station area along Shillong road,

Sentinel Digital Desk

OUR CORRESPONDENT

DIGBOI: A serious case of alleged regulatory failure and unauthorized commercial activity has come to light in Digboi's station area along Shillong road, where a disposal item shop continues to operate despite the expiry of its trade licence, cancellation of its GST registration, and questionable occupation of land claimed to be an AOD GM plot located dangerously close to the Digboi Refinery.

Records from the Golai Gaon Panchayat reveal that the trade licence issued to the proprietor, Ranjan Kumar Debnath, under Section 71 of the Assam Panchayati Raj Act, 1986, expired on March 31, 2022. More than two years after the lapse, the business remains fully operational, with no visible evidence of renewal or temporary authorization. The continued operation of the establishment in the absence of a valid licence constitutes a clear violation of local governance laws and raises serious concerns over the enforcement mechanism of licensing authorities.

Equally troubling is the status of the shop's GST registration. The establishment was earlier registered under GSTIN 18ASTPD9531A1ZP as a Composition Scheme Holder. However, the registration reportedly stands suo moto cancelled by the GST Department. Despite this, the shop is allegedly continuing business transactions and issuing bills, an act that amounts to misrepresentation and a direct breach of GST laws, exposing consumers and the public exchequer to unlawful financial practices.

The issue becomes even more contentious due to the land on which the shop is operating. The proprietor claims the site to be an AOD GM plot but has failed to produce any supporting documentation, including the GM plot number or any written authorization or permission from AOD management for construction and commercial use of the premises. Instead, an unsubstantiated claim has been made that the land was allotted approximately 80 years ago.

Legal observers point out that such assertions, in the absence of documentary evidence, do not confer any legal right, particularly for commercial exploitation, which mandatorily requires explicit approval from the competent AOD authority.

Adding another layer of concern, sources indicate that the proprietor was earlier a registered contractor with IOC AOD Digboi.

Ironically, the disposal materials business presently operating on the AOD GM plot is reportedly financed by Digboi Gramin Vikash Bank under a government-sponsored scheme PMEGP. This revelation has raised eyebrows among nearby localities, with questions being asked about how financial assistance under a government scheme was extended to a business allegedly operating without valid licences, cancelled GST registration, and unresolved land authorization.

Adding to the gravity of the situation is the shop's proximity to the Digboi Refinery. The establishment is located at an estimated distance of merely 10 meters from the refinery's vulnerable boundary wall. Digboi Refinery is a critical oil installation where stringent safety, security, and buffer norms are expected to be enforced. The presence of an unauthorized commercial unit so close to refinery infrastructure poses serious risks, including fire hazards, industrial accidents, security vulnerabilities, and environmental threats.

The nature of the business further compounds these risks. Disposal item manufacturing and supply units typically involve the storage and handling of paper, plastic, and other combustible materials. Operating such a unit in close vicinity to petroleum infrastructure without safety clearance or authorization is widely viewed as reckless and potentially disastrous in the event of an accident.

Despite these apparent violations and risks, the establishment has reportedly continued its operations without any visible administrative intervention. This has triggered widespread concern among local residents and observers, who question how an unlicensed, tax-noncompliant business can function unchecked in a strategically sensitive area. The silence of the concerned authorities has raised uncomfortable questions about regulatory oversight, institutional accountability, and due diligence.

There is now an increasing demand for immediate action by the district administration, Golai Gaon Panchayat, AOD Management, and relevant enforcement agencies.

Citizens and concerned groups are calling for a thorough inspection of the site, verification of land ownership and authorization, scrutiny of the financing under government schemes, enforcement of licencing and taxation laws, and prompt removal or sealing of unauthorized commercial establishments operating near the refinery.

As of the filing of this report, no official response has been issued by the concerned departments.

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