398 LPG Cylinders Seized in Madurai, Two Detained Under Goondas Act in Major Hoarding Crackdown

The Tamil Nadu authorities arrested two individuals for stockpiling 398 LPG cylinders, applying the Goondas Act. Officials say fuel supplies remain adequate with thousands of dealers connected to terminals, urging calm and condemning hoarding to prevent artificial shortages.

Authorities in Madurai arrested two persons for allegedly stockpiling 398 LPG cylinders for illegal sale, and both were detained under the Goondas Act. Police said this is the first time in Tamil Nadu that such a strict legal route has been used in a cylinder hoarding case, amid public concern over possible LPG and fuel shortages across the state.

Investigators said the cylinders were seized during coordinated raids at two locations linked to the accused. Officers first searched an open plot near Palani's residence in Kovilpappakudi, where they found 100 subsidised domestic LPG cylinders and 109 commercial cylinders. A follow-up operation at the house of Madan Kumar, 27, in Anandam Nagar yielded another 189 cylinders, including 126 meant for commercial use.

LPG cylinders and fuel shortage in Tamil Nadu: Officials urge people not to panic

The action in Madurai comes as rumours about LPG and fuel scarcity spread in parts of Tamil Nadu, even as both the Centre and state-level industry bodies insist supplies remain stable. The Tamil Nadu Petroleum Dealers' Association asked consumers to avoid panic purchases of petrol or diesel, stressing that 14 fuel terminals across the state can serve more than 7,000 retail outlets according to demand.

K P Murali, president of the Tamil Nadu Petroleum Dealers' Association, said fuel availability is comfortable for the near term. Murali explained that terminals, including three in Chennai, continue to supply petrol and diesel as usual to retail pumps. He added that the network can meet requirements for at least the next three weeks if buying patterns remain normal and organised.

Reassuring motorists, Murali said, "There is no need for the public to fear a shortage. All dealers have adequate stock and are continuously receiving supplies from oil companies. Panic buying will only create an artificial shortage that benefits no one," Murali told PTI. The Centre has also urged citizens to avoid panic booking of LPG or fuel as India maintains sufficient inventory despite global tensions and war-related disruptions.

LPG cylinders and fuel shortage in Tamil Nadu: How distribution works and where rumours began

Murali detailed typical storage levels at fuel stations to counter speculation about dry pumps. "Dealers usually have three days' stock with them. And they buy from these terminals as and when they need. This is happening as usual. So, there is no need to panic," Murali added. According to Murali, more than 7,000 dealers linked to the association draw supplies from these terminals whenever required.

However, Murali acknowledged that scare stories about a possible fuel shortage may have started at a few smaller retail outlets supplied by private companies rather than public sector oil firms. "More than 7,000 dealers are associated with our organisation and they all have access to terminals to replenish their stock as per demand," Murali said. Industry representatives maintain that coordinated communication is needed to stop misinformation causing sudden demand spikes.

LPG cylinders and fuel shortage in Tamil Nadu: Legal crackdown on black marketing

While trade bodies try to calm nerves, enforcement agencies have stepped up checks on LPG cylinder misuse. The Civil Supplies Criminal Investigation Department received a specific tip-off about subsidised domestic LPG being diverted for commercial use in Madurai. Acting on this information, a special CS-CID team carried out the raids that uncovered the 398 cylinders allegedly kept for black-market sale.

A senior official said both accused were charged under the Essential Commodities Act after the seizure. Later, on the recommendation of investigators, Madurai district collector Praveen Kumar ordered their detention under the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, commonly known as the Goondas Act. The CS-CID Madurai zone has warned that hoarding essential commodities will invite strict legal consequences.

LPG cylinders and fuel shortage in Tamil Nadu: Traders highlight impact on hotels and demand action

Business groups are also voicing concern about how any disruption in LPG supply could hit small traders. At a traders' association meeting in Tenkasi on March 12, A. M. Vikkrama Raja, president of the Tamil Nadu Vanigar Sangankalin Peramaipu, said the hospitality sector is already feeling pressure. Raja noted that hotels depend heavily on LPG cylinders to prepare daily menus for customers.

Raja said, "The Union government must take action on a war footing to ensure that traders are not affected as they were during the Covid-19 period. Due to the cylinder shortage, items like 'dosa', 'poori', and 'parotta' are becoming unavailable in hotels. While we are doing our best to feed the people, some agencies are hoarding cylinders and selling them for as high as Rs 4,000. Authorities must conduct inspections and take strict action against such elements," Raja said. Raja cautioned that traders across Tamil Nadu would organise protests if fuel prices are raised citing shortage concerns, and announced a major traders' conference in Tiruvarur on May 5 to seek a special protection law for small-scale traders against the rising influence of multinational companies.

Officials and trade bodies now face a twin task: acting against illegal hoarding of LPG cylinders while convincing the public that supplies of LPG and fuel remain adequate across Tamil Nadu. With enforcement agencies using the Goondas Act in the Madurai case and dealer organisations repeatedly stressing that terminals are well stocked, authorities hope firm action and clear communication will prevent panic buying and protect both consumers and small businesses.