Cheat chip that helped petro dealers make ₹ 200 cr pm

STF claims 80% pump owners in the state involved in such theft

LUCKNOW: The Uttar Pradesh petrol pump owners were siphoning off over Rs 200 crore per month by using a hi-tech chip-based device that helped in dispensing less petrol, initial probe after the Thursday raids on city petrol pumps has revealed.

The UP Special Task Force (STF), which raided seven petrol pumps in Lucknow on Thursday, claimed on Friday that not only pumps in the state capital but around 80% petrol pumps across the state were in fact dispensing less fuel using the device.

“While initial probe suggests that the “wonder chip” is already installed at around 80% of fuel filling stations in UP, the figure could further go up as the probe progresses and more facts tumble out,” said STF SSP Amit Pathak.

At least 23 people, including four petrol pump owners and an electric technician, were arrested on Friday after registration of seven separate FIRs. The arrest of more persons is likely in the matter.

The city-based electrician Rajendra has admitted installing such a chip in hundreds of refilling stations in Lucknow and other districts, as well as other states.

The chip is controlled by a remote controlled device used to reduce the oil quantity delivered to consumers even as the oil dispenser meter showed the right measurement. This way a consumer gets around 100 ml less fuel per litre at stations where these chips are installed.

Up for sale in Kanpur and Delhi, the chip set comes with a diagram that explains how to install the same on the machine.

While each chip cost around ₹ 30,000 to ₹ 40,000, an electrician took ₹ 5,000 to ₹ 10,000 to install the same at the petrol pumps.

The remote device used to activate and deactivate the chip could operate from a distance of 100 metres and hence was generally placed in cash bags of the vendor. It used to be deactivated only when any consumer used to take fuel in a container as the bluff could have called in such cases.

During Thursday raids, it was found that at least 100 ml fuel per litre was dispensed less at Lalta Prasad Filling Station located on KGMU crossing in Lucknow Chowk area.

“It was verified when the STF team along with other concerned authorities measured the dispensed oil through measurement vessel during raid. A consumer who was paying for 20 litres petrol/diesel was only getting around 18 litres here,” said the SSP STF.

“A rough calculation done by our officials suggested that on an average an urban area or prime location petrol pump used to earn ₹ 12 to 15 lakh extra per month and rural area or remotely located petrol pump used to earn at least ₹ 6 to ₹ 7 lakh extra by cheating consumers this way,” the SSP said.

Giving an example of another petrol pump, Pathak said the records of Maan Filling station on Sitapur road in Madiaon revealed that its daily sale was of around 12,000 litre (both petrol and diesel) and that they were delivering at least 6% less fuel per litre.

He said the calculation suggested that they daily dispensed 720 litres less fuel to customers, earning at least ₹40,000 extra per day.

Rajendra, whose arrest led to the detection of theft racket, has confessed that he and other members of his gang were in the business of installing electronic chip at petrol pumps for last seven years.

They had installed the chip at nearly 1000 fuel refilling stations. The police claimed the accused has revealed that names of at least seven other members of the gang.

Interestingly, the accused insisted that many other similar gangs were also in this business, he added.