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Evaluation Report
on
Impact and Effectiveness
of
Consumer Protection Act, 1986
Project Directors
Prof. Suresh Misra Dr. Sapna Chadah
Dr. Mamta Pathania
Project Team
Dr. Amit Kr. Singh Shri Virendra Nath Mishra
Shri Pankaj Kr. Singh Shri Ashutosh Dixit Dr. Yatish Mishra
Sponsored by
Department of Consumer Affairs Ministry of Consumer Affairs, Food
and Public Distribution Government of India
Conducted by
Centre for Consumer Studies Indian Institute of Public
Administration New Delhi
Centre for Consumer Studies, IIPA
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PREFACE
The Consumer Protection Act was enacted in 1986 for better protection of the
consumers. The Act provides for the redressal of grievances and also the relief that the
consumers are entitled to, apart from setting up councils to promote consumer welfare. The
Act has been in operation for the last twenty five years and it was expected to provide relief
to consumers and give a boost to the consumer movement in the country.
An assessment of the working of the Act reveals a number of loopholes in its
implementation. Even though the redressal mechanism has been established yet the justice
delivery mechanism has not been able to provide relief to the much exploited consumers.
Large numbers of complaints are pending in the three tier mechanism and the pendency is
only growing. The complaints are not redressed within the stipulated time as a result the
consumers are not approaching the forums to file complaints. Moreover, the capacity of the
forums to deliver justice itself needs to be upgraded. Another major reason relates to the
level of consumer awareness in the country about the existence of such legislation. As a
result consumers are unaware of their rights. Perhaps this is one of the major drawbacks.
After twenty five years of the Act being in operation, it is time to evaluate and assess
its impact and effectiveness. The Department of Consumer Affairs, GoI has initiated this
study on “Evaluation of the Impact and Effectiveness of Consumer Protection Act, 1986”.
The Study has been entrusted to the Centre for Consumer Studies, Indian Institute of Public
Administration, New Delhi. The Study covered 5 states 10 districts and 50 villages. To widen
the scope of the study and also to get a true perspective more than 310 District Forums and
60 villages were covered. Apart from this large number of consumers from cross section of
the society as well as complainants formed the bulk of the sample size.
The Report presents a detailed analysis of the state of consumer protection and the
effectiveness of the Consumer Protection Act. Various parameters have been used to get a
clear picture of the existing ground realities and what ails the consumer movement in the
country. It also presents a detailed analysis of the role of various stakeholders in promoting
consumer welfare and the lacuna that exists in the policy and practice which needs to be
filled up. We are confident that the analysis, findings and the recommendations of the study
will go a long way in reframing consumer policies, programmes and strategies to provide
better protection to the consumers and take the consumer movement forward.
We will be happy to receive valuable comments about the report. New Delhi 14.1.2013
Prof. Suresh Misra Dr. Sapna Chadah
Dr. Mamta Pathania Project Directors, IIPA
Centre for Consumer Studies, IIPA
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ACKNOWLEDGEMENTS
We are thankful to the Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution, Government of India for sponsoring this study and providing all necessary support while the study was being conducted in various states. We are grateful to Shri. Pankaj Agrawala, Secretary, Department of Consumer Affairs, Shri Manoj Kumar Parida, Joint Secretary, Department of Consumer Affairs and other Officers for the support they extended to us during the study. We would also like to place on record our thanks to Shri Rajiv Agarwal, Former Secretary, Department of Consumer Affairs for his support and advice during the initial stages of the study.
We are also indebted to various State Governments, Officers and Officials of the Food, Civil Supplies and Consumer Affairs Departments for their support. The Presidents and Members of various SCDRCs and the District Forums and other officials of the redressal agencies were very helpful and provided all the relevant data that was required to complete the study. The Registrar, Joint Registrar, Deputy Registrar and Assistant Registrar of the NCDRC were very helpful and provided all the required information to us. We are thankful to all of them, but for their cooperation it would have been difficult to complete the study.
We have no words to express our gratitude to various institutions, organisations, consumer activist, consumer experts, legal experts and the consumers of the five states who helped us and provided support in various forms to complete the study. But for their help and support the study would have not seen the light of the day.
Apart from the field data, data, information, literature and useful material has been
collected from various sources, we are thankful to all of them for their help.
We would also like to place on record our thanks to Director, IIPA and other officers for their support in completing the study. We will be failing in our duty if we do not acknowledge the support extended by the Research Officers of the Centre for Consumer Studies, IIPA namely Dr. Amit Kr.Singh, Shri Virendra Nath Mishra, Shri Pankaj Kumar Singh, Shri Ashutosh Kumar Dixit and Dr. Yatish Mishra in completing the field work in time inspite of various problems in the field. We are also thankful to Shri Sandeep Kumar (Research Officer) and Ms. Kalyani Mishra and Shri Kapil Nagar (Field Investigators) for their help in collecting and compiling the data. We would like to thank Shri R.C.Mangla, Consultant, CCS for providing excellent administrative and financial support during the study. We are also thankful to Ms. Deepa, Ms. Hema and Mr. Anand Singh, for providing secretarial assistance and to Mr. Anoop and Mr. Dhara Ballabh Joshi for providing logistic support.
Project Directors
Centre for Consumer Studies, IIPA
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CONTENTS
Preface i
Acknowledgements ii
List of Tables iv-vi
List of Figures vii
Executive Summary viii-xxix
Chapter I Introduction 1-39
Chapter II Impact of Consumer Protection Act (Perception of Consumers - Cross section)
40-75
Chapter III Working of Consumer Redressal Mechanism (Perception of the Members of the Consumer Foras)
76-133
Chapter IV Effectiveness of the Grievance Redressal Mechanism (Perception of the Complainants/Appellants)
134-156
Chapter V Role of Various Stakeholders in Consumer Protection (Central & State Governments, VCOs, Educational Institutions, Business & Trade)
157-192
Chapter VI Findings and Recommendations 193-209
Annexures
Annexure I Data on Functioning of the Consumer Foras 210-214
Annexure II Structure for Department of Consumer Affairs in the States 215-217
Annexure III Scrutiny Sheet for A Consumer Complaint Filed Before DCDRFs in Maharashtra
218-221
Annexure IV List of Persons Contacted by the Research Team 222-226
Annexure V Bagla Committee Report 227-237
Annexure VI Shenoy Committee Report
238-241
Annexure VII Recommendations on Role of Consumer Clubs in Promoting Awareness & Education
242-249
Annexure VIII Notifications for Conducting Examination for Appointment of Members in DCDRFs in the States of A.P and Maharashtra
250-265
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List of Tables
Table No.
Title of Table
1.1 Total Number of Consumer Complaints Filed / Disposed since inception under Consumer Protection Law
1.2 Fee Structure Introduced by Third Amendment 1.3 Stratification Criteria of Sample 1.4 Sample Plan 1.5 Time Frame 1.6 List of Surveyed States, Districts, Blocks/Talukas and Villages 2.1 Age Group of the Consumers 2.2 Occupation of the Consumers 2.3 Education Level of the Consumers 2.4 Annual Income of the Consumers 2.5 Place of Purchase of Daily Goods 2.6 Inquiry into Various Aspects before Making Purchase 2.7 Insistence on Cash Memo/Bill while Purchasing Durables 2.8 Awareness about MRP and Bargaining on MRP 2.9 Awareness about Standard Marks and Labels 2.10 Consumers‘ Experience regarding Forms of Exploitation 2.11 Consumers Reaction against Exploitation 2.12 Knowledge about Consumer Protection Act 2.13 Level of Awareness among Consumers about Consumer Protection Act, 1986
(Socio – Economic Classification) 2.14 Source of Information about Consumer Protection Act 2.15 Who can file a Complaint in District Consumer Forum (Out of those who knew about CP Act,
1986) 2.16 Procedure Adopted to File Complaint in the District Forum (Out of those who filed complaint in
DCF) 2.17 Reason for not filing complaint in District Forum (Out of those who did not file complaint in DCF) 2.18 Implementation of Orders of District Forums 2.19 Threat of CP Act and Response of Shopkeepers/Traders 2.20 Why Consumer Protection Movement is Not Successful 2.21 Agencies to be involved in Consumer Awareness Programme 2.22 Best Medium to Spread Consumer Awareness 2.23 Source of ‗JAGO GRAHAK JAGO‘ Campaign 2.24 Know about Consumer Days 2.25 Knowledge about Dates of Consumer Days (Out of those who know the day) 3.1 Functional Status of State Commissions and District Forums 3.2 Vacant Positions in State Commissions and District Forums 3.3 Number of District Forums and Members covered under the Study 3.4 Age Group of the Members 3.5 Age Group of the Presidents 3.6 Educational Status of the Members 3.7 Previous Occupation of the Members 3.8 Nature of Previous Employment of the Members 3.9 Problem in Handling Complaints without Law Degree 3.10 Essential to know all the Legal Provisions/Procedures under CPA 3.11 Problems Faced in the Functioning by District Forums 3.12 Average Time Taken for the Disposal of Complaints 3.13 Reasons for Delay in Disposal of Consumers‘ Complaints Within the Prescribed Time Limit 3.14 Problems relating to Lab Testing Facilities 3.15 Nature of Problems Faced by the District Forums 3.16 Reason Why Consumers do not File Complaints 3.17 Issues Related to Functioning of DCDRF 3.18 Application of CPC & Evidence Act in Proceeding of District Forums
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3.19 Role of NGOs & VCOs and Awareness about Consumer Rights 3.20 Perception of Forums about Involvement of Lawyers 3.21 Functioning of District Consumer Protection Councils 3.22 Quality and Honorarium to Members 3.23 Honorarium/Remuneration Being Paid to the Presidents & Members of State Commissions
and Presidents & Members of District Forums 3.24 Suggestions for Increase of Honorarium (Views of Presidents) 3.25 Status of CONFONET Project in DCDRF 3.26 Problems in Computerization and Related Activities (Part I & Part II) 3.27 Participation in Training Programmes 3.28 Place of Training Attended by Presidents and Members 3.29 Assistance Released during 4 Years under Scheme of Strengthening of Consumer Fora
(SCF) 3.30 Infrastructure Details of DCDRFs 3.31 Status of Information Communication Technology in District Forums 3.32 Cases Filed from Different Sectors ( Last Two Years) 3.33 Average Number of Complaints Filed in DCDRFs (Monthly) 3.34 Average Number of Cases Disposed in DCDRFs (Monthly) 3.35 Status of Cases in Sample DCDRFs 3.36 Year wise Case Status at Different Levels 3.37 Year Wise Case Status in DCDRFs 3.38 Area wise Percentage of Complaints Filed (Sampled DCDRFs) 3.39 Oldest Complaint Pending in District Forums 3.40 Time Taken to Dispose Cases in Last Two Years 3.41 Kind of Reliefs Granted by District Forums 3.42 Staff Strength in DCDRFs 3.43 Nature of Employment 3.44 Adequacy of Present Staff Strength in DCDRFs 3.45 Number of Staff Required in DCDRFs (Out of DCF those having inadequate staff) 3.46 Statement of Cases Filed / Disposed of / Pending in State Commissions
3.47 Infrastructure Available in SCDRCs 3.48 Number of Presidents and Members Interviewed from SCDRCs 3.49 Perception of Presidents and Members on Working of SCDRCs 3.50 Functioning of the SCDRCs 3.51 Why Consumers do not File Complaints 3.52 Involvement of Lawyers in the SCDRCs 3.53 Computerisation of SCDRCs 3.54 Extent of Support from the State Government 3.55 Level of Satisfaction with the Powers under CP Act 3.56 Status of Infrastructure in SCDRCs 3.57 Status of ICT Facilities in SCDRCs 3.58 Area wise Cases being Filed in SCDRCs 3.59 Classification of Cases of Last Two Years (2010-12) 3.60 Year wise Case Status in SCDRCs 3.61 National Consumer Disputes Redressal Commission Circuit Bench – 2005 to 2012 3.62 National Consumer Disputes Redressal Commission as on November, 2012 3.63 Year wise Status of Case in NCDRC 3.64 Statement of Original Petition Cases in National Consumer Disputes Redressal Commission 3.65 Statement of First Appeal Cases in National Consumer Disputes Redressal Commission 3.66 Statement of Revision Petition Cases in National Consumer Disputes Redressal Commission 3.67 Status of Manpower in NCDRC 3.68 Financial Implication Worked out by the NCDRC 3.69 Filing of Cases/ Day before Consumer Redressal Mechanism since Inception (1987) 3.70 Disposal of Cases/ Day by Consumer Redressal Mechanism since Inception (1987)
4.1 Background of the Complaints
4.2 Educational Status of Complainants
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4.3 Occupation of the Complainants
4.4 Annual Income of the Complaints
4.5 Source of Information about the District Forum (Only for District Forum Complainants)
4.6 Mode of Filing Complaints
4.7 Status of Complaints
4.8 Reasons for Dissatisfaction with the Redressal Mechanism
4.9 Following Prescribed Time Limit
4.10 Satisfaction with the Progress of Complaint
4.11 Appeal Filed in Higher Commission
4.12 Behaviour of the Staff of the Forums/Commissions
4.13 Response about Engaging Lawyer
4.14 Level of Satisfaction with the Service of Lawyers
4.15 Frequency of Visit to the Forum/Commission
4.16 Hearing of Complaints and Punctuality of Members
4.17 Perception about the VCOs
4.18 Setting up Free Consumer Guidance Cells
4.19 Facing Harassment in the Forums
4.20 Would you file a Complaint Again if Necessary
4.21 Perception about Decisions Based on Merit
4.22 Time Taken for First Hearing after Receipt of Notice
4.23 Average Number of Hearings Conducted to Dispose of Complaints
4.24 Average Number of Adjournments Granted by the Forums/Commissions in Disposal of Complaints
4.25 Average Time Taken in Disposal of Complaints
5.1 State-wise Consumer Clubs in Schools
5.2 Amount sanctioned to the State/U.T. for Consumer Clubs
5.3 Grants Released under the Consumer Helpline Scheme
5.4 Current Occupancy/Position of the Presidents and Members of Surveyed SCDRCs
5.5 Current Occupancy/Position of Presidents and Members of Surveyed District Forums
5.6 Constitution of SCPCs/DCPCs in the States 5.7 Current Status of State Consumer Protection Councils & District Consumer Protection
Councils of the Selected States/Districts
5.8 Consumer Awareness Activities in the Selected States
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List of Figures
Table No. Title of Figures
1.1 Sample Plan 2.1 Gender of the Respondents 2.2 Awareness about Standard Marks and labels (Grand Total) 2.3 Consumers‘ Experience regarding Forms of exploitation 2.4 Consumers Reaction against Exploitation (Grand Total) 2.5 Awareness about Consumer Protection Act, 1986 2.6 Knowledge about Six Rights given under Consumer Protection Act, 1986 2.7 Are Consumer Well Protected by Laws in India? 2.8 Is Consumer Protection Act Well Implemented? 2.9 Does Consumer Protection Act Favour only Consumers? 2.10 Awareness about District Consumer Forum 2.11 Ever Filed a Complaint in the District Forums 2.12 Reason for not Filing Complaint in District Forum 2.13 Prefer Settlement through Mediation 2.14 Awareness about District Consumer Protection Council 2.15 Need for Consumer Awareness Programme 2.16 Seen/Heard ‗JAGO GRAHAK JAGO‘ Campaign 2.17 Area wise Penetration of ‗JAGO GRAHAK JAGO‘ 2.18 Awareness about CPA,1986 among those who have Seen/Heard ‗JAGO GRAHAK
JAGO‘ Campaign 2.19 ‗JAGO GRAHAK JAGO‘ is Informative 2.20 Awareness about the National Consumer Helpline/CORE Centre 2.21 Consumer Approached NCH/CORE for Help 3.1 Disposal of Complaints within Stipulated Time of 3/5 Months 3.2 Do you Have Funds to Educate the Consumer? 3.3 Level of Computer Literacy 3.4 Area wise Percentage of Complaints Filed 4.1 Type of Cases Filed 4.2 Adopted Other Modes of Complaint Redressal before Approaching the District Forums 4.3 Satisfaction with the Functioning of Redressal Mechanism 4.4 Satisfaction with the Procedure Adopted by Forums/Commissions 4.5 Proceedings under Sections 25 & 27 4.6 Average Time Taken to Disposal of Complaints in DCDRFs & SCDRFs 5.1 Percentage of Schools having Consumer Clubs 5.2 State wise Distribution of Consumer Clubs in India 5.3 Implementation of Consumer Club Scheme in India A.1.1 Information Regarding Functional/Non-Functional Fora A.1.2 Information Regarding Vacancy Positions in the State Commissions and District
Forums A.1.3 Statement of Cases Filed / Disposed of / Pending in the National Commission and
State Commissions A.1.4 Statement of Cases filed/disposed of/pending in District Fora (Update on 18.09.2012)
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EXECUTIVE SUMMARY
1 Background
Confident, informed and empowered consumers are the backbone of a vibrant
economy. The business of any manufacturer, service provider, trader or retailer depends on
and flourishes with consumers‘ demand. In fact, business starts with consumer and ends
with consumer satisfaction. Inspite of this, consumers are a vulnerable lot and are being
exploited in various forms like overcharging, black-marketing, adulteration, short weights and
measures, misleading advertisements, poor quality of services, dubious sale purchase
agreements and other deceptive practices. In a country like India, where a substantial
number of the people are living below the poverty line, having high level of unemployment
and poor literacy level; most of them do not have adequate information about goods and
services they are using. They are exposed to unfair, unethical market practices of some
dishonest businesses. A combination of new technologies and globalization of the world
economy has further aggravated the problem. The revolution in electronic media in 21st
century along with globalisation and liberalisation has transformed market practices. It has
led to vast expansion of business with a variety of goods and services to cater to the needs
of the consumers which have left the consumers further confused and bewildered. In such a
scenario consumer protection is a socio- economic programme to be pursued by the
government as well as the business as the satisfaction of the consumers is in the interest of
both. In this context, the government, however, has a primary responsibility to protect the
consumers‘ interests and rights through appropriate policy measures, legal structures and
administrative framework.
Consumer protection ensures that consumers receive information that will allow them
to make informed decisions and are not subject to unfair and deceptive practices, have
access to recourse mechanisms to resolve disputes when transactions go awry, and are
able to maintain privacy of their personal information. At its heart, the need for consumer
protection arises from an imbalance of power, information and resources between
consumers and their service providers, placing consumers at a disadvantage. Consumer
protection aims to address these market failures and imbalances. In fact, Government of
India has enacted different legislations to safeguard consumers‘ interests from time to time.
However, except for the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, all
the other Acts were mainly punitive and preventive in nature. Inspite of these Acts the
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consumers did not have an effective mechanism or institutional arrangement for speedy and
inexpensive redressal of their grievances. Moreover, lack of an effective popular consumer
movement isolated the consumer and his plight only increased. Hence recognizing the need
for equipping a consumer, to be vigilant and empowered with respect to his rights, the Indian
Parliament enacted the Consumer Protection Act in 1986.
The Consumer Protection Act is a very unique and highly progressive piece of social
welfare legislation and the provisions are intended to provide effective and efficient
safeguards to the consumers against various forms of exploitations and unfair dealings. It is
a handy weapon for consumers to ensure accountability of producers of goods and
providers of services. It provides for setting up a three tier redressal mechanism and
disposal of complaints in a time frame. However, the success of the consumer movement
depends upon the level of awareness among the consumers at large about their rights and
remedies available to them and also the effectiveness of the redress mechanism in providing
quick and inexpensive justice to the consumers. The law can only give certain rights to the
consumers, but its functioning and implementation largely depends on the awareness and
efforts of the consumers and other stakeholders.
The Act has been in operation for the last 25 years, but there are deficiencies and
shortcoming in respect of its effective implementation and operation. The purpose of the
three tier quasi-judicial structure was to give quick and inexpensive justice to the consumers;
however, the machinery is riddled with many problems making it difficult for the complainant
to get justice in the prescribed time. The problem is further aggravated by the low level of
awareness among the consumers. Even after 25 years of the consumer movement,
concerns are being raised regarding the level of awareness of the consumers‘ inspite of
many steps taken at the central and state government level to generate awareness among
the masses. It‘s time to evaluate the impact and effectiveness of the Consumer Protection
Act and take remedial measure aimed at strengthening the consumer movement.
Therefore, on the request of the Department of Consumer Affairs, GoI, the Centre for
Consumer Studies, Indian Institute of Public Administration, New Delhi conducted an
Evaluation study on “Impact and Effectiveness of Consumer Protection Act, 1986” to
suggest policy guidelines to make the Act effective and beneficial to the consumers. The
present study has been conducted in five states of India which are located in five different
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regions of India, i.e. Gujarat, Karnataka, Odisha, Tripura and Uttar Pradesh. The important
features of the study are as follows:
2. Objectives of the Study
In view of the above, the objectives of the study were: -
To assess the level of awareness among the consumers regarding their rights and remedies available to them under the CPA;
To analyse and evaluate the working of the quasi-judicial machinery under the Act;
To assess the effectiveness of the CP Act in redressal of consumer grievances;
To study the functioning of the consumer councils established at the central, state and district levels; and
To suggest appropriate measures to make the machinery under the Act more effective and efficient to achieve the purpose of the Act.
3. Methodology
The present study is an empirical research based on both primary and secondary
data. It is a blend of both descriptive and analytical methods of study. For the purpose of the
study primary data was collected through a set of questionnaires and by way of discussions
with various stakeholders. Search conferences have also been organized to get information.
The approach was to seek information from various stakeholders involved in the protection
of consumer rights. The secondary data comprising of records of the DFs, SCDRCs,
NCDRC, Department of Food, Civil Supply and Consumer Affairs in various states, various
published and unpublished reports, books, articles, and journals etc. have also been used
for the purpose of the study.
To assess the impact and the level of awareness of the consumers regarding the
consumer rights and other aspects related to consumer protection a questionnaire was
administered to the consumers. The information regarding level of awareness about the CP
Act and its provisions has been gathered through primary surveys. To study the
effectiveness of the CP Act and the working of the Dispute Redressal Machinery at the three
levels, two set of questionnaires was prepared - one for the Presidents and Members of the
National Commission, State Commissions and District Forums and another for the
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Complainant / appellant. Discussions were also held with the Presidents and the Members
of the Consumer Forums/ Commissions to gather their views on the working of the Forums/
Commissions. To study the functioning of the Consumer Councils at State as well as District
level, CCS research team held discussion with the Secretary and Director of Food, Civil
Supply and Consumer Welfare Department of the selective States and also with the District
Collector/Magistrate, SDM and District Civil Supply Officers of the selected Districts.
Discussions have also been held with state and district level officials to evaluate the role of
the State Government in making the CP Act more effective.
4. Sampling Techniques
The survey methodology for this study was stratified random sampling. Since India is
a very heterogeneous country and having diverse geographic, socio – cultural and economic
characteristic, a stratified random sampling could reflect the characteristics of the population
as a whole. Firstly, five states from six mentioned regions (as per ToR of this project) of
India were selected for the study. These states were selected in a way that they can best
represent the entire geographical regions of the country. The states were: Uttar Pradesh
from North, Gujarat from West, Karnataka from South, Odisha from Central Region and
Tripura from North East. From each state two districts were selected. Selection of Districts
was mainly based upon the ratio of two variables - size of the population and the number of
case filed in the respective DCDRF of that particular district.
Subsequently, within the states all the districts were ranked accordingly with their
ratio value. After that one district with higher value and one district with lower value were
selected for the study. While selecting the districts care was taken that these districts should
not be adjoining and they must represent the tribal, mountainous and coastal regions of
India as per the guidelines of the Department of Consumer Affairs.
After selecting the districts further stratification was made on the basis of rural and
urban areas to address the fact that there is wide distribution of population in India. Still 70
percent of country‘s population is living in rural areas and 30 percent in urban areas. Hence
to get the opinion of both rural and urban consumers; six villages spreading across the three
Developmental Block/Taluk and three colonies of the District town were selected in the
study. As far as Blocks/Taluks are concerned the selection criteria was as follows; (i)
Block/Taluk with higher literacy level, (ii) Block/Taluk with lower literacy level, and (iii)
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Block/Taluk with high concentration of SC/ST population. The selection of two villages from
each Block/Taluk and the respondents therein was done randomly.
The study tried to get the opinion of all the stakeholders involved in the consumer
protection movement in India such as consumers, complainants, redressal agencies,
VCOs/NGOs, legal experts, policy-making institutions, government officials, departments,
social activists and others. Since their role, responsibilities and interests are different;
therefore, this study adopted various methods for data collection. They were as follows:
1. Interview Schedule – Different structured questionnaires were developed for in-depth interview of the consumer, complainants/appellants, Presidents/Members of the Forums and Commissions. The questionnaires were subjected to reliability test by pre-testing the constructed tools by administering it to 10 % of the respondents in each category. The questionnaires were modified based on the responses received.
2. Focus Group Discussion- FGDs were organized with the NGOs/VCOs and Panchayat Level Officials to get their opinion.
3. Formal Meetings- Meeting with Department of Food, Civil Supplies and Consumer Affairs in various states as well as officials at District level who are looking after the implementation of CP Act.
5. Sample Size
The sample size consists of 10 districts from 5 states (two from each state). From
each district 200 person from different sections of the society and 25 complainants from the
respective DCDRF were selected (total sample size of 2000 consumers and 175
complainants). Apart from these 10 District Forums, 5 State Commissions and National
Commission have also been taken up for the study. For the purpose of study we proposed to
interview 30 members from 10 District Forums, 15 members from 5 SCDRCs and 10
members of NCDRC, but to have a broader perspective, Questionnaire was administered to
all the District Forums of the five selected states inviting their views and suggestions on the
working of the quasi-judicial machinery. Out of total 162 District Forums in the five states we
received responses from 112 Presidents and 193 Members of the District Forums, which
covers 70 percent of the study area. Their opinions have been incorporated in this report.
Apart from this the CCS research team also organised Search Conferences at district level.
One Validation Seminar was also organised after the presentation of the report to
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Department to get suggestions and to validate the findings. The study was completed in six
months.
6. Time Frame Table 4
Phases Work Plan Months
I Preliminary Work (Manpower Planning identification of Respondents & Developing Interview Schedule)
1
II Collection of Primary and Secondary Data and Search Conferences
2
III Data Compilation & Analysis 1
IV Draft Report and Validation Seminar 1
V Final Report 1
7. Limitations of the Study
1. The study began with the presumption that basic data of the NCDRC, SCDRCs and District Forums would be available through the CONFONET project, NCDRC, and DCA but not much was available and therefore, data had to be generated. Record compilation and management is poor.
2. There was limited cooperation from some of the organisations in terms of providing data, reports, literature and information about consumer activities.
3. The complainants and the lawyers were not very cooperative during the survey.
4. June and July happens to be vacation period for NCDRC and SCDRC and therefore, time taken to collect data was more than anticipated.
5. The Presidents and Members of the redressal agencies were hesitant to frankly give their views/opinions about the working of the three tier redressal mechanism.
8. Findings and Recommendations
Major Observations
1. The study reveals that the Consumer Protection Act, 1986 had limited impact on
consumer empowerment mainly due to lack of awareness about the Act and its provisions. Comparatively the impact has been more on males than females. The urban consumers are much more aware about the Act than their rural counterparts. It is also evident that higher the age group more the awareness about the Act and its provisions. Similarly higher the education level and income level more the awareness about the Act.
2. The Act has much less impact on the marginalised sections of the society who lack education and are living in the rural areas with low level of income.
3. The awareness level about the Consumer Protection Act and Consumer Rights is higher in areas where consumer clubs have been set up in schools and colleges and are actively involved in consumer activities.
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4. The limited impact and the ineffectiveness of the Consumer Protection Act, 1986 to a large extent is not due to inadequacy of the law or its provisions but it is due to the poor implementation of the Act and the apathy of the governments and other stakeholders including the consumers.
5. The effectiveness of the Consumer Protection Act is marginal as far as redressal of consumer complaints is concerned. The District Forums to a very large extent are not able to deliver justice quickly and in a cost effective manner as envisaged under the Act and therefore, consumers are losing faith in the redressal mechanism at the District level. Moreover, the compensation awarded is so small that there is apathy among the consumers to file complaints in the district forums as the time and cost factor does not favour the consumer. Timely complaint redressal is the key to success of the CP Act.
6. There is a broad consensus among the various stakeholders that the delay in disposal of cases is largely due to the involvement and appearance of lawyers in all cases. Because of this the proceedings have become too technical, cumbersome, and expensive as slowly the procedures of the civil court have crept in the proceedings of the District Forums.
7. The District Forums to a large extent lack the capacity to deliver speedy justice due to lack of adequate infrastructure, poor management of records, shortage of manpower and the required skill and knowledge of the members manning the District Forums.
8. The delay in filling up of the vacancies at all the three levels of the redressal mechanism has further added to the problem leading to large pendency of complaints.
9. Computerization of the redressal agencies/mechanism should have helped in better management of data and thereby bringing greater efficiency in the working of the redressal agencies. The impact of computerization has been lacklustre due to lack of computer skills among the members of the redressal agencies, shortage of technical manpower and consumer peripherals, inadequate bandwidth leading to poor internet connectivity and also irregular power supply. This has led to delay in disposal of complaints and the Consumer Protection Act has not been very effective in protecting consumer interests in the country.
10. Consumer welfare does not seem to be a priority area for the State Governments as there is no separate Department of Consumer Affairs in the states and it has been merged with Food and Civil Supplies Department. As a result of this the line department dealing exclusively with consumer affairs down to the village level does not exist. The Civil Supplies officers are too over worked with PDS.
11. No specific policies/ strategies have been framed by the state governments on consumer protection. No serious and meaningful effort is made by the state governments to educate the consumers. Enormous delay takes place in filling up the vacancies in the District Forums/State Commissions and also in providing infrastructure. State governments mainly depend on the grants from the central government. In a federal polity unless the state governments give importance to consumer welfare, not much can be achieved.
12. The Consumer Protection Councils at the District and the State level have largely not been constituted. Even where they have been constituted after a long delay, they have remained dysfunctional and purposeless and the meetings are just a formality and a ritual without any worthwhile agenda.
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13. The Central Government has to play a much more proactive role as far as consumer welfare is concerned. In the present scenario central allocation to states and various other organizations has to be increased with timely release of funds to sustain the programmes. Specific programmes have limited impact. At present there are no specific long term policies to strengthen the consumer movement. There is a need to reorient policies and strategies to make them much more effective.
14. The VCOs are major stakeholders in the consumer movement but they lack both capacity and credibility. The consumers to a large extent do not have faith in these organisations. In each State there are hundreds of such VCOs claiming to be representing consumer‘s interest. However, only a handful of these have emerged as competent professional bodies working for consumer welfare.
15. There is no incentive for VCOs to take up consumer complaints; therefore, very few cases are being filed by the VCOs on behalf of the consumers. Moreover, the compensation awarded to the consumers is so small that consumers are not encouraged to file cases. The time and cost factor dissuades the consumers from approaching the forums for redressal of their complaints.
9. Major Findings
Impact of Consumer Protection Act
1. The sample size of the consumer respondents is 2100 spread across ten districts in five states of U.P, Odisha, Karnataka, Gujarat and Tripura, 73.6 percent are males and 26.4 percent are female respondents. 35 percent of the consumers are less than 30 years of age, 26.1 percent are in the age group of 30-40 years, 20.5 percent between 40-50 years of age and 18.4 percent of the respondents are above 50 years of age.
2. 29.7 percent are associated with agriculture, 18.8 percent are traders/
manufacturers/ small businessmen, 15.8 percent are students, 12.7 percent are housewives and 11.5 percent are teachers. 60.2 percent of the respondents had an annual income of less than ` 50,000, 14.8 percent between ` 50,000- 1 lakh, 12.1 percent had income between ` 1-2 lakh, 10.2 percent of them had an annual income
between ` 2-5 lakh and 2.3 percent were in above 5 lakh annual income category.
3. Only 25.2 percent of the consumers always enquire about the terms and conditions
before making a purchase, 40.3 percent do it sometimes. 26.9 percent always enquire about the available choices, 31.8 percent always enquire about the contents of the product. However, 57.1 percent of the respondents always enquire about the price and 50.8 percent always see the expiry date.
4. Only 26.0 percent of the respondents always insist on the cash memo/ bill after
making a purchase. 41.9 percent ask for it sometimes and 32.1 percent never ask for the purchase memo/ bill.
5. 70.6 percent of the respondents are aware about the MRP and 48.0 percent know
that one can bargain on MRP and get the product for a lesser value.
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6. 70.5 percent of the consumer respondents know about ISI mark, 41.3 percent are aware about AGMARK, 47.2 percent know Hallmark, only 16.0 percent can recognise FPO mark, 9.6 percent know about BEE logo, 7.1 percent about Eco- mark, 32 percent know about ISO and 39.7 percent know about Veg. /Non Veg. marking.
7. Consumers are exploited in various forms in the market. 55.4 percent of the
respondents have experienced adulteration, 47.4 percent short weighing, 50.1 percent have been victim of overcharging, 43.4 percent had received poor quality product, 35.3 percent had deficiency in services, 41.2 percent had an experience of defective goods and 36.8 percent of the respondents are victims of false information.
8. Out of those who had experienced some form of exploitation 43.7 percent of them
ignored the problem and took no action, 41.7 percent tried to get the price/return the product or replace the product. Only 17.3 percent mobilised other consumers. 96 percent did not lodge a complaint in the District Forum and only 4 percent made a complaint to the dealer/manufacturer.
9. The awareness level about CP Act is low. 67.2 percent of the respondents do not
know about the Consumer Protection Act. Only 10.2 percent know about it to a large extent and 22.6 percent to some extent.
10. 63.5 percent of the male and 71.0 percent of the female respondents are not aware
about the Consumer Protection Act.
11. 70.2 percent of the respondents below 30 years of age are not aware about the Consumer Protection Act, while 61 percent above 50 years are not aware about the Act.
12. 74.9 percent of the rural consumers are not aware about the Consumer Protection
Act, while it is 56.3 percent in case of urban consumers.
13. Higher the education levels higher the awareness about the Act. 53.1 percent of the post graduate respondents are not aware about the Act while it is 95.3 percent in the case of respondents who have no schooling.
14. Higher the income levels higher the awareness about the Consumer Protection Act.
81.6 percent of the respondents below income level of ` 50,000 are not aware about
the Consumer Protection Act while 58.2 percent of those having an income of ` 5-10 lacs are not aware about the Consumer Protection Act.
15. Out of the respondents who know about the CP Act, 28.9 percent came to know
about it for the last three years, 26.7 percent for the last six years, 14.1 percent know about the Act for the last 9 years, 13.1 percent know about the Act for last 15 years and 4.1 percent of the respondents know about the CP Act for more than 15 years.
16. For 41.9 percent of the respondents the source of information about the CP Act has
been family and friends. Media as a source has been indicated by 71.5 percent, lawyers by 13.2 percent and for 29 percent respondents VCOs have been the source of information about the CP Act.
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17. Out of the respondents who know about the Consumer Protection Act only 19.4 percent could correctly enumerate them which indicates the level of awareness about the Act.
18. 59.5 percent could not say whether consumers are well protected under the laws in the country. Only 26.1 percent said they were well protected. 55.7 percent could not say whether the CP Act has been implemented well. Only 21.4 percent were of the view that the Act was implemented well.
19. 60.4 percent of the respondents could not say whether the CP Act favours only
consumers. Only 18.4 percent of the respondents said the Act favours only consumers.
20. 48.0 percent of the respondents are not aware about the District Forum. 18.9 percent
are aware about the DF to a large extent and 33.1 percent to some extent.
21. 84.9 percent of the respondents knew that a consumer can file a complaint in the District Forum, 51.7 percent say VCOs can file, 31.3 percent say Government can file, 30.8 percent are of the opinion that one or more consumers can file a complaint. Only 33.5 percent of the respondents know that all of the mentioned categories can file a complaint in the District Forum.
22. Of all the respondents only 4 percent had filed a complaint in the District Forum. 26.6
percent of these had filed the complaint personally, 70.7 percent had engaged the services of a lawyer and 2.7 percent had filed a complaint through a VCO.
23. 32.4 percent of the respondents who did not file a complaint did so because they had
no knowledge about the law, 33.3 percent felt the procedure was lengthy and caused delay and 8.0 percent said the forum was located at a far of place from their residence.
24. Among those who had filed a complaint in the District Forums, 77.6 percent said that
the orders were implemented effectively, 65.9 percent said the District Forum are not consumer friendly and only 19.3 percent had taken the help of a VCO.
25. Given a choice 60 percent of the respondents said that they would prefer mediation
rather than filing a complaint. 26. Only 12.8 percent of the respondents knew about the District Consumer Protection
Council.
27. 16.4 percent have used the threat of CP Act to restrain the marketers from exploitation. Out of those who had threatened the business to use the CP Act, 29.2 percent of them said that unfair trade practices had stopped, 41.7 percent said it had stopped but started after sometimes. 29.2 percent said that business did not bother about the threat.
28. 75.4 percent of the respondents identified lack of education about consumer rights as
the major reason for failure of consumer movement. 51.4 percent say that consumers attitude is casual, 68.1 percent blame the ineffective redressal mechanism. 62.3 percent blame the government for insufficient efforts, 62.0 percent
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feel the business is too powerful and 57.6 percent are of the opinion that nobody wants to take an initiative.
29. 88.0 percent of the respondents agree that there is a need for consumer awareness
programmes to educate the consumers.
30. As far as the agency to carry out the programmes to create awareness is concerned the respondents preferred that the Government should be involved in creating awareness, next preference was to Schools/Colleges, next to Gram Panchayats, then to Electronic and Print Media and NGOs/VCOs was last in order of preference.
31. The medium first preferred by the respondents was electronic and print media,
secondly they ranked that the important days relating to consumers should be celebrated, NGOs/VCOs were placed at third preference.
32. 80.2 percent of the respondents had heard/seen Jago Grahak Jago campaign. 90.3
percent said the TV was the major source of information, 67.2 percent said Radio, 65.3 percent came to know from newspapers/magazines, and 17.7 percent were informed by the VCOs.
33. 86.62 percent of the respondents find ―Jago Grahak Jago‖ campaign very
informative.
34. 87.2 percent and 87.5 percent of the respondents are not aware about the National Consumer Day and World Consumer Rights Day respectively. Of those who knew about these days only 41.8 percent of them could mention the correct dates.
35. 92.3 percent of the respondents are not aware about NCH/CORE helplines and only
6.4 percent had approached them for help.
Working of the Redressal Mechanism
1. 60.6 percent of the Members of the District Forums are in the age group of 35-50 years while 88.3 percent of the Presidents of the District Forums are above 60 years.
2. 38.0 percent of the Members of the District Forums are graduates with law degree
while 14.1 percent of them are post graduates with law degree which constitutes more than half the Members (52.1 percent) with a law degree.
3. 44.3 percent of the members were lawyers before being selected to the District
Forums and 11.5 percent of them were government employees. 14.2 percent of the lady members were housewives with no experience.
4. 69 percent of the members without a law degree did not experience any kind of
problem while handling complaints, while 97.4 percent agreed that a thorough knowledge of the Consumer Protection Act and the procedures to be followed should be known by all.
5. The infrastructure requirement seems to be the major problem being faced by the
District Forums in their functioning. 59.7 percent are of the view that the infrastructure is inadequate. 61.5 percent opined that there is shortage of supporting
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staff; funds are not available for day to day functioning and requirements (62.4 percent). Nearly 70 percent say that lab testing facilities are inadequate. 62 percent of the respondents blame the consumers for non -cooperation and nearly 80 percent say that there is shortage of stationary.
6. 72.3 percent of the respondents said that the complaints are not disposed of within 3-
5 months as stipulated under the Consumer Protection Act. Only 27.7 percent of the respondents said that complaints are disposed within the time limit.
7. Only 10.2 percent of the complaints are disposed within a period of three months,
17.8 percent within 5 months, 18.8 percent takes between 5-9 months, 22.8 percent of the complaints are disposed within 9-12 months while 19.5 percent of the complaints take between 1-2 years to be disposed and 10.9 percent of the complaints take more than 2 years to be disposed. Thus only 28.0 percent of the complaints are disposed within a period of 5 months, 41.6 percent take more than 5 months and 30.4 percent of the complaints take more than one year to be disposed.
8. 64.0 percent blame the involvement of the lawyers in the District Forums for the
delay. 63.4 percent say the lawyers do not cooperate in speedy disposal of complaints. 56.4 percent say undue adjournments are asked by them. 78.9 percent hold technical proceedings responsible for the delay. 79.2 percent feel the consumer is disinterested after filing the complaint and 79.5 percent say delay is also due to lack of product testing facilities.
9. 53.1 percent of the respondents say they face problems in the execution of the
orders of the District Forums. 62.0 percent say the District Administration does not cooperate with the District Forums.
10. In case of product testing, 85.6 percent of the respondents are of the view that there
is delay in sending the report and 97.1 percent of the respondents are of the view that it is difficult to interpret the report as it is too technical and scientific.
11. Delay in disposal of complaints is cited as a reason by 75.6 percent of the
respondents for consumers not coming forward to file complaints. 84.6 percent say the compensation amount is too less and 85.0 percent held lack of awareness about their rights as a reason for consumers not filing complaints.
12. 91.1 percent of the respondents agreed that due to low honorarium, qualified people
are not being attracted to the consumer forums. 95.6 say the honorarium should be increased. 52.1 percent of the Presidents agreed that it should be atleast ` 25000. 25.1 percent felt the honorarium should be between ` 25000-35000, 16.0 percent
feel that it should be above ` 35000 while 6.8 percent said that it should be equal to
the Presidents as they perform the same work.
13. Indiscipline is not a problem in the working of District Forums say 93.1 percent of the respondents. 98.3 percent said punctuality is adhered to. 76.9 percent opined that the functioning of the forums is good. There is a cordial relationship among the members said 71.3 percent of the respondents. 76.2 percent said members are involved in judgment writing and 69.3 percent agreed that forums try to mediate between the parties to solve the complaint.
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14. 36.3 Percent of the respondents agreed that they apply CPC, CrPC and Evidence Act in the proceedings of the forums, 17.5 do so to some extent and 46.2 percent follow only simple procedures and refrain from using these provisions.
15. 63.7 percent of the respondents feel that the NGOs/VCOs should play an active role
in filing complaints. 80.9 percent of them said the consumers are not aware about their rights.
16. 51.8 percent feel the involvement of the lawyers helps the consumers to a large extent, while 48.2 percent feel it does to some extent. 60.2 percent agreed that lawyers prolong the cases and 64.0 percent opined that they also make the proceedings technical and difficult for consumers to understand.
17. 74.8 percent of the members are not aware about the District Consumer Protection
Council. 64.3 percent are unaware of DCPC being constituted in their District.
18. 90.2 percent opined that they do not have funds at their disposal to promote consumer education.
19. Only 26.7 percent of the respondents are aware about the CONFONET Project but
80.5 percent agreed that computerisation has helped in data management. Only 49.2 percent said that the data is uploaded on daily bases as there are no full time staff to upload the data, 77.2 percent identified it as the main problem.
20. 72.8 percent say there is no data entry operator, 53.9 percent held poor internet
connectivity as the problem and 58.5 percent blame it on lack of proper infrastructure. 53.7 feel problems are due to lack of computer education among the members and the staff. 72.2 percent say that the computers are poorly maintained while lack of proper hardware and software has been cited as a problem in computerisation by 82.1 percent of the respondents.
21. 60.2 percent of the respondents have attended a training programmes and 63.2
percent found it to be very helpful in upgradation of their knowledge and skill. Among all those who have attended a training programme, 73.5 percent attended at IIPA.
22. As far as infrastructure is concerned 63.6 percent of the forums are situated in their
own buildings and 22.7 percent in government building. Library facilities exist only in 64.5 percent of the forums.
23. 86.4 percent of the forums have computer hardware. 77.3 percent have internet
connectivity of their own. 81.8 percent have fax machines and 83.6 percent have also acquired photocopiers. But internet connectivity is poor.
24. 64 percent cases filed in the District Forums are related to service sector. 55.1
percent of all the complaints filed in the District Forums related to electricity, insurance, banking and telecommunications.
25. In 40 percent of the District Forums less than 15 complaints are being filed every
month. In 37.3 percent, between 15-30, and in 11.8 percent of the forums between 30-40 complaints and in 10.9 percent of the District Forums more than 45 complaints are being filed every month.
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26. Less than 15 cases are disposed every month by 31.8 percent of the District Forums, between 15-30 complaints by 30 percent of the forums, 30-45 complaints by 20.9 percent of the forums while 17.3 percent of the forums dispose more than 45 complaints per month.
27. In the ten District Forums selected for study by the research team in 5 states, the
disposal rate is 90.1 percent, 51.5 percent of the complainants belong to the urban areas while 48.5 are from the rural areas.
28. 46.2 percent of the pending complaints in the District Forums of Uttar Pradesh were
filed before 2001. 18.2 percent of the complaints in the district forums in the five states were filed in 2010 and 20.0 percent of the pending cases were filed in 2011. 60.0 percent of the pending of the complaints were filed before 2010 and majority of them are in Uttar Pradesh.
29. 21.6 percent of the complaints are disposed within a period of 3-5 months, 20.8
percent between 5 months to 1 year, 29.1 percent between 1-2 years, 10.5 percent take more than three years to dispose the complaint in the ten select District Forums of five States.
30. 85.2 percent of the District Forums have awarded compensation to the consumers,
6.1 percent have directed to discontinue UTP/RTP. In 5.6 percent of the complaints, orders have been issued to withdraw hazardous goods and in 3.0 percent of the complaints orders have been passed to issue corrective advertisements.
31. 11.8 percent of the District Forums have less than 3 staff members to support their
functioning, 74.5 of them have 4-5 supporting staff and 13.7 have supporting staff between 6-7.
32. 92.1 percent of the supporting staff consists of permanent employees mainly drawn
from other departments on deputation, 5.4 percent of them are on contract and 2.5 percent of the supporting staffs are daily wage earners.
33. 80.66 percent of the respondents said that the staff strength is inadequate and
affects the functioning of the District Forums.
34. 30.2 percent of the respondents were of the view that each District Forum should have minimum staff strength of 6. 47.9 percent said it should be between 6-9, and 21.9 percent felt the ideal staff strength size would be between 9-12 employees to carry out the activities of the forums.
Effectiveness of the Redressal Mechanism
1. 74.4 percent of the complainants are males and 25.6 percent are females, 75.2 are from urban areas and 24.8 percent from rural. 15.3 percent have studied up to intermediate class. 40.9 percent are graduates, 16.5 percent are post graduates.
2. 28.5 percent of the respondents are professionals, which include engineers, doctors,
architects, lawyers, etc. 16.9 percent are government servants while 14.5 percent are traders/ manufacturers/ shopkeepers.
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3. As far as the annual income of the complainants/ appellants is concerned 26.4 percent have an income of less than ` 50,000-1 lakh, 25.6 percent are in the income
slab of ` 1-2 lakh, 15.3 percent have an income between ` 2-5 lakh and 7.5 percent have an annual income of more than ` 5 lakh.
4. 88.8 percent of the cases filed in the three tier redressal mechanism relate to service
sector and only 11.2 percent relate to products. The same is true at all three levels.
5. Before filing a complaint in the District Forum 39.6 percent of the respondents had tried other methods to redress their problems.
6. 29.6 percent of the complainants came to know about the District Forum from the
lawyers, in case of 27.3 percent the source of information was print and electronic media and in the case of 21.2 percent of the complainants the family members and friends were the source of information. 18.2 percent of the respondents acquired information from VCOs.
7. 77.7 percent of the respondents filed the complaints through the lawyers. It is 92.3
percent in NCDRC, 81.5 percent in SCDRCs and 75.0 percent in the District Forums. 14.9 percent filed personally and 4.1 percent did through the VCOs.
8. Of all the complaints/ appeals filed 47.7 percent are pending, 38.6 percent have been resolved, 12.0 percent have been admitted and 1.7 percent have been dismissed.
9. Only 28.1 percent of the complainants/ appellants are satisfied with the functioning of the three tier redressal mechanism. Highest level of satisfaction is with the NCDRC accounting to 38.1 percent of the respondents.
10. 44.1 percent of the respondents are dissatisfied with the redressal mechanism on
account of delay in disposal of the complaints. 18.6 percent were awarded less compensation, 16.9 percent said the complaint was not heard properly.
11. 30.8 percent of the respondents of the District Forums were dissatisfied due to delay, 18.6 percent due to award of less compensation. 20.5 percent of them felt the complaint was not heard properly, 10.3 percent said the order was not executed, 7.7 percent opined that the forum was biased in favour of the opponent and 12.8 percent were dissatisfied due to time and money involved in litigation.
12. Overall only 33.1 percent of the respondents are satisfied with the procedures adopted by the three tier redressal mechanism. 76.9 percent however, are satisfied with the procedure of the NCDRC.
13. Only 15.7 percent of the complainants of the District Forums say that time limit is
adhered to in the admission of complaints, 34.8 percent say in the issue of notice, 29.1 percent in the commencement of hearing. 34.1 percent of the respondents say that the time limit is adhered in disposal of complaint and 7.3 percent agree that it is done in case of compliance of orders.
14. Only 29.8 percent of the respondents are satisfied with the progress of the complaint.
Among those who are satisfied, 43.0 percent are fully satisfied and 57.0 percent are satisfied only to some extent.
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15. Of all the complaints disposed by the District Forums only 9.8 percent filed an appeal against the order in the State Commission, while only 6.1 percent filed an appeal in the National Commission against the order of the State Commission.
16. Of all the orders of the District Forums only 6.71 percent of the respondents had filed an application under section 25 for execution of the orders or section 27 for non-compliance.
17. 57.0 percent of the respondents say that the staff of the Forums/ Commissions is
supportive and helpful. It‘s as high as 76.9 percent for the NCDRC. 74.3 percent said that no staff member suggested engaging a lawyer and 65.8 percent did not find any difficulty in filing the complaint. It is only 61.6 percent for the District Forums.
18. 77.7 percent of the complainants/appellants engaged a lawyer to contest the complaint. This was because 57.9 percent did not know about the law, 50.8 percent were not aware about the procedure to be followed. Nearly 40 percent had time constraint to attend the proceedings and 27.3 engaged lawyers because of distance from the residence.
19. 73.4 percent of the complainants/ appellants are satisfied with the services of the
lawyers, 61.1 percent are largely satisfied, only 24.4 percent held the lawyer responsible for the delay in disposal of the complaint.
20. 29.6 percent of the respondents visited the forums/commissions 1-4 times to pursue their complaint. 5-8 visits were made by 30.4 percent of them, 9-12 by 16.7 percent, and more than 12 visits were made by 13.3 percent of the complainants/ appellants to pursue their complaint. The visits are higher at the level of the District Forums. 60.4 percent of the respondents made more than 5 visits to the District Forums to pursue their complaints.
21. Only 50.8 percent of all the complainants /appellants said their complaint was heard
properly. It is 44.4 percent in the District Forums, 61.5 percent at the State Commissions and as high as 76.9 percent at the NCDRC.
22. 55.8 percent of the respondents say the President and Members of the redressal
mechanism are punctual in attending the work of the Forums/ Commissions. It is 84.6 percent in case of NCDRC. 63.1 percent for SCDRCs and only 50.6 percent of the complainants of the District Forums said that the President and Members are punctual in attending the Forums.
23. 79.8 percent of the respondents are not aware that the VCOs can file a complaint on
behalf of the consumers. Only 5.7 percent had taken the help of the VCOs in filing the complaint.
24. 60.7 percent of the respondents want free Consumer Guidance Cells to be set up at
all the three tiers of the redressal mechanism.
25. 71.3 percent of the respondents did not face any harassment in the District Forums, while 28.7 percent faced harassment in varying degree. Only 48.3 percent of them did not face any harassment in the District Forums of U.P. while 51.7 percent faced varying degree of harassment.
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26. 61.4 percent of the respondents would again file a complaint if the need be.
27. 55.8 percent of the respondents believe that the Forums/ Commissions decide the cases only on merit. Among those who said yes, 18.5 percent say largely and 57.9 percent to some extent it is based on merit.
28. In the District Forums 28.7 percent of the respondents said that after filing the complaint the first hearing commenced after one month, 27.2 percent said after 2 months, 22.3 percent said after 3 months, 11.7 percent say after 4 months and 10.2 percent said the hearing commenced after 5 months or more after filing the complaints.
29. In the SCDRCs and the NCDRC 23.4 percent of the respondents who filed a complaint said that the first hearing started after one month, 28.2 percent said after 2 months. 20.2 percent said after 3 months, 9.7 percent said it commenced after 4 months and 18.5 percent said the first hearing commenced after more than 5 months.
30. 33.2 percent of the complainants of the District Forums said the complaint was disposed within 1-3 hearings, 27.4 percent opined that it took between 4-6 hearings, 21.2 percent said it was between 7-10 hearings; while 18.2 percent said more than 10 hearings were conducted to dispose of the complaint.
31. In the SCDRCs 14.3 percent of the complaints were disposed within 1-3 hearings, 24.7 percent of the complaint took 4-6 hearing, 41.2 percent took between 7-10 hearings and 19.8 percent of the complaints were disposed after conducting more than 10 hearings.
32. In the District Forums 21.5 percent of the complaints were disposed without any adjournment being granted. 30.8 percent of the complaints had 1-2 adjournments, 24 percent between 3-4 and 15.6 percent between 4-6 adjournments while in 8 percent of the complaints more than 6 adjournments were granted.
33. In the District Forums 24.6 percent of the complaints were disposed within 3 months, 26.8 percent within 4-6 months, 16.4 percent within a period of 7-9 months, 10.4 percent within a period of 10-12 months and 21.9 percent of the complaints took more than a year to be disposed.
34. More adjournments are granted in the SCDRCs. 18.3 percent of the complaints were
disposed without any adjournment, 15.4 percent with 1-2 adjournments, 27.8 percent with 3-4 adjournments, 28.8 percent of the complaints had 4-6 adjournments and 9.7 percent of the complaints were disposed with more than 6 adjournments.
35. In the SCDRCs 24.1 percent of the complaints are disposed within 3 months, 23.8
percent within 4-6 months, 15.9 percent within 7-9 months, 11.0 percent within a period of 10-12 months and 25.2 percent of the complaints take more than a year to be disposed.
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10. Recommendations
1. To strengthen the consumer movement in the country the State Governments should set up a separate Department of Consumer Affairs or atleast a Directorate of Consumer Affairs with adequate budget and manpower to begin with. However, in the long term a full-fledged Department of Consumer Affairs needs to be set up. The West Bengal and Kerala model would give a boost to the consumer movement in the country. (Annexure II)
2. The Consumer Protection Councils envisaged under the Consumer Protection Act
can play a meaningful role in promoting consumer welfare. Particularly at the district level these bodies can also provide a forum for various stakeholders to meet and share their problems. Therefore, there is a need to strengthen these councils and ensure that they are constituted and meet regularly.
3. At the District level the President and the Lady Member may be nominated as
members of the Council. Similarly at the State level the President and the lady member of the State Commission must be nominated as the members of the State Council. At present in most of the states the members of the redressal agencies are not members of these bodies.
4. There is an urgent need to strengthen the CONFONET project. At present hardly 15-
20 percent of all the data of the redressal agencies is being uploaded. As a result there is no mechanism through which an all India data of the redressal agencies can be retrieved. Unless data and record management improves it would be very difficult to enhance the efficiency of the redressal agencies. TSP may be provided for another five years to support the redressal agencies.
5. A large number of service providing departments and organizations have consumer
interface but there is no mechanism to address consumer issues. It would be appropriate that a middle level officer in each department is designated as Consumer Welfare Officer both in the central and the state governments.
6. All Government Departments as well as Public and Private Sector Enterprises having
public interface must have a Consumers Complaint Redressal Cell and run it impartially.
7. The District Forums are the first point of contact for the aggrieved consumers. But
these bodies themselves are not consumer friendly as in none of these three tier redressal bodies there is a desk to help or guide the consumers. Therefore a ―MAY I HELP YOU DESK‖ needs to be set up in each of these Forums/Commissions to help and guide the consumers.
8. The members being appointed to the District Forums by and large lack knowledge
and skill to function effectively. It is time to introduce an objective type written test (MCQ) for the aspirants of the District Forums to screen them. Only those who qualify the written test should be called for the interview. This will go a long way in bringing competent and qualified people as members of the District Forums. (It is already being done in Andhra Pradesh.)
9. Delay in filling up the vacancies is hampering the working of the three tier redressal
agencies leading to pendency of complaints. Moreover, the State government keeps
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the recommendations made by the selection committee for appointment of President and Members pending for a very long time leading to unnecessary delay and pendency of cases. The process of filling up of the vacancies of the members of the District Forums, State Commissions and National Commission must begin atleast 6-8 months before the vacancy actually takes place and the selections finalized at the earliest.
10. To fill up the post of Presidents and Members in the District Forums and the State
Commissions, the State Government may make a ‗Standing Panel‘. The Presidents and Members of the District Forums, who have very good record, should be considered for re-appointment. Further, if there is vacancy in a particular District Forum, that Forum should be temporarily clubbed with the neighbouring District Forum, so that consumer does not suffer for want of action on the part of the authority.
11. With a view to attract better talent, a reasonable uniform pay scale of all the members of the State Commissions and District Forums should be fixed. The recommendations of the Shenoy Committee (Annexure VI) can be taken into account.
12. With a view to empower the Presidents of the State Commissions and the District
Forums, to discharge their administrative duties in a proper manner and to exercise the financial powers and also to enhance their functionality there is a need to declare the President of State Commission as ―Head of Department‖ and President of the District Forum as ―Head of Office‖.
13. The pendency in the State Commissions is increasing, therefore, there is a need to
constitute adequate number of additional Benches considering that, on an average, a Bench of a State Commission consisting of two Members could not be expected to dispose of more than 1000 cases in a full year.
14. The State Commissions are not able to exercise effective supervisory control over
the District Forums. As a result they lack accountability and indiscipline is becoming a major problem. In many of the states even the working hours are not adhered to and absenteeism has become a major problem. The working of the District Forums needs to be properly monitored and accountability fixed. Mere disposal of a specified number of complaints in a month is not an effective measure of the performance of the District Forums. At present the State Commissions do not have any mechanism to monitor or supervise the working of the District Forums and the President of the Commission does not have adequate time to do this. Therefore, the State Commission may set up a separate Monitoring Cell under a Joint Registrar (Monitoring) to effectively supervise and monitor the activities of the District Forums and report to the President of the State Commission periodically.
15. With the increasing workload of the redressal agencies there is a need to have
adequate manpower to man the work of the redressal agencies. At present there is no uniform staffing pattern. There is no doubt that the current staff strength is inadequate. The Bagla Committee recommendations on staffing pattern (Annexure V) may be implemented, with variations depending on the size of the district and the number of complaints being filed. Similar is in the case of NCDRC/SCDRC.
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16. There is a need to have a separate cadre of staff for the redressal agencies as the staff on deputation has not been able to function effectively due to lack of administrative control. Judicial work needs permanent trained staff to handle the task which the staff on deputation is not able to handle. Moreover, by the time they are acquainted with the work they are transferred.
17. Capacity building is a major exercise. The Presidents and Members of the District
Forums may undergo 2-3 weeks induction training soon after being selected. The State ATIs (Administrative Training Institutes) can organize such programmes. If such programmes are organized by Judicial Academies the members will imbibe judicial work culture and inculcate judicial mind set, therefore, to avoid this, it is important to involve the ATIs.
18. The District Forums must be encouraged to organize Lok Adalats to dispose of
pending cases. The help of the District / Taluka Legal Services Authority may be taken to organize such adalats. At present very few cases are disposed of through the lok adalats.
19. The three tier redressal mechanism has virtually been hijacked by the lawyers. As a
result undue adjournments are granted leading to delay in disposal of the complaints. Moreover, at the District Forum due to the involvement of lawyers the proceedings have become too technical and cumbersome. It may be a good idea to ban the appearance of advocates in small cases involving less than one lakh rupees. This will provide great relief to small consumers and also quicken the pace of justice delivery. It will also encourage more consumers to seek redressal of their complaints. It is to be noted that lawyers are barred from appearance under the Banking Ombudsman scheme and family courts.
20. In a recent judgment the Supreme Court has held that it is not necessary to engage a
lawyer but any one with basic knowledge can appear on behalf of a consumer. The National Commission has been asked to frame the regulations. Such people should be asked to take up such cases. As a result of this the consumers will benefit a lot both in terms of quick delivery of justice and it will also be inexpensive. For both the district forums and the consumers it will be a win-win situation.
21. Except for the National Commission, none of the State Commissions and the District
Forums have their websites with full and updated information for the consumers. Even the State Commissions which have a website of their own, the information is out-dated and no regular updating is taking place. Moreover information from a consumer‘s perspective is not available. Therefore efforts must be made to ensure that every redressal agency whether at the state level or the district level must have its own operational website with standards for its regular updating.
22. At present no power is vested in the State Commissions and the District Forums to
review or recall the order of dismissal in default of the cases, and the cases dismissed for want of prosecution. Similarly, no power of review/recall is vested in the State Commissions and District Forums, for setting aside the ex parte proceedings orders. So far the review/recall of such like orders, one has to go to the National Commission, which results into unnecessary litigation, leading to delay in disposal of cases. It is recommended that not only the power of restoration of matters dismissed in default needs to be vested in the State Commission, but also they need to be conferred the power of reviewing their orders atleast in cases, where there is
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apparent error on the face of record. At times lack of power of review results in miscarriage of justice. However, this power may not be vested in the District Forums as chances of misusing such powers are high due to local influence.
23. In cases where statutory bodies are complained against, protection is claimed by
such statutory bodies, under the provisions of the Statutes creating them. For example, Section 6 of the Indian Post Office Act, 1898, provides protection to the statutory bodies and their functionaries. The provision was made when the country was under colonial rule and the post office did not make profit, out of the services provided by them. Keeping in view the interest of the consumers such protection provided under various laws needs to be reviewed and such protection should not be available to any statutory body in respect of the activities, which are commercial in nature.
24. Although at present the provisions of this Act are in addition to and not in derogation
of the provisions of any other law for the time being in force, giving consumers an additional forum for redressal of their grievances in addition to existing avenues for the same; the Supreme Court judgement dated 1.9.2009 in C. A. No. 7687 of 2004 of G. M. Telecom Vs M. Krishnan and another, has completely changed the situation. The dispute in this case was regarding disconnection of telephone connection for non – payment of telephone bill. The Supreme Court in its judgement held that when there is a special remedy provided in Section 7-B of the Indian Telegraph Act regarding disputes in respect of telephone bills, then the remedy under the Consumer Protection Act is by implication barred. It also held that it is well settled that the special law overrides the general law. This needs to be reviewed.
25. On the lines of the Conference of the Presidents of the State Commission and the Secretaries in-charge of the Consumer Affairs in the States being organised by the NCDRC and DCA annually, the State Commissions and the State Department of Consumer Affairs may organise a conference of the Presidents of District Forums and District Collectors who head the District Consumer Councils on annual basis.
26. In order to strengthen the consumer movement in the country the major focus has be to on consumer education and awareness about consumer rights and responsibilities. An educated consumer is an empowered consumer. Therefore, vigorous awareness campaign has to be launched using both electronic and print media. The campaign must have visibility and should not be an occasional affair as it is at present.
27. The Consumer clubs in schools and colleges are very good institutional mechanism to involve the youth in the consumer movement. This is very important as children are the best messengers. The consumer clubs need to be strengthened and empowered with adequate funds to generate activities. The recommendations of the study on consumer Clubs conducted by IIPA may be considered to strengthen the Consumer Clubs. (Annexure VII)
28. There is a greater need to involve educational institutions in the consumer
movement. As a first step the State School Boards may be requested to incorporate consumer protection in the school curriculum. The UGC may also initiate similar steps to start courses on consumer protection in the institutions of higher learning.
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29. VCOs can play a major role in educating the consumers‘ at the local level. They have the reach as many of them work in the rural areas. But the need is to build the capacity of the VCOs to work as an effective organization. There are thousands of VCOs but the need is to have some standards of performance for these VCOs to be recognized and funded. BIS could formulate some standards for the VCOs. Subsequently they could register themselves with the State Government Departments. Only such VCOs which have been accredited by BIS should be funded to organize awareness programmes.
30. Capacity building programmes must be organized by the ATIs to orient the officers/ officials of various service providing departments about consumer protection. The SIRD (State Institute of Rural Development) may also be involved in training the elected representatives of the panchayat and the cutting edge bureaucracy. A capsule on consumer protection can be introduced in all the programmes being organized by the SIRDs. DCA may think of funding such training programmes to the ATIs and the SIRDs.
31. To educate the consumers at the District and the Taluka level the help of the District Legal Services Authority and the Taluka Legal Services Committee constituted under the Legal Services Authorities Act, 1987 may be taken. The objective is to take the help of the existing legal and institutional mechanism to educate the consumers and create awareness at the local level rather than setting up new institutions.
32. The National Consumer Day needs to be celebrated in a befitting manner. This should be a day of celebration with various activities being planned down to the Panchayat level. The Consumer Clubs can be roped in to organize various activities like rallies, nukkad natak, painting competition, debates etc. to create awareness on consumer issues.
33. There is a need and demand for good quality publicity material relating to consumer issues. The Department of Consumer Affairs, GoI, may print suitable and innovative posters, pamphlets, booklets and publicity material on large scale and send it to various State Commissions, District Forums and other organisations for their use. It can be both in English and Hindi languages. The same may also be translated in regional languages by the State Governments for the benefit of general public.
34. Steps are required for Setting up Mediation Centers to try and resolve Consumer
Grievances through Conciliation and Mediation prior to filing of complaints in Consumer Fora. These Centres should be part of the District Forums and be located in the Consumer Fora building itself and under the administrative control of the President of the concerned forum for better monitoring and to reduce overhead expenditure. Such Mediation Centers for dealing with consumer complaints will help in reducing the burden on the Consumer Foras.
35. Apart from the Mediation Centres, the Consumer Helplines and CAC scheme needs
to be strengthened. The state governments may be requested to set up the helplines at the earliest.
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CHAPTER I
INTRODUCTION
1.1. Introduction
Consumers are the backbone of any business. Business starts with consumer and
ends with consumer‘s satisfaction. Consequently, the welfare of consumers is an essential
pre-requisite for a healthy and sustainable economy. Confident, informed and empowered
consumers are the engine of economic change as their choices drive innovation and
efficiency. Inspite of this the consumers are a vulnerable lot due to their continuous
exploitation by the traders and the service providers. The consumers are being exploited by
overcharging, black-marketing, rampant adulteration, short weights and measures,
misleading advertisements, lapses in services offered dubious sale purchase agreements
and other deceptive practices. A combination of new technologies and the globalization of
economy, which have led to development of international trade and global competition, have
further aggravated consumers‘ problems. It has led to vast expansion of business with a
variety of goods and services to cater to the needs of the consumers which have left the
consumers further confused and bewildered. In such a scenario the consumer protection is a
socio- economic programme to be pursued by the government as well as the business as
the satisfaction of the consumers is in the interest of both. In this context, the government,
however, has a primary responsibility to protect the consumers‘ interests and rights through
appropriate policy measures, legal structure and administrative framework.
Rapid technological change and its impact on consumer behaviour is taking place
within an increasingly liberalized market place in which the global drive to compete brings
new challenges to both existing and nascent regulatory authorities. Consumers‘ needs and
expectations vary according to the availability, accessibility and affordability of goods and
services. Nevertheless consumers‘ expectations are likely to be disappointed if the quality
of goods and services is poor. Shoddy services, bad quality products, broken promises, and
contract foul-ups are just some of the problems faced regularly by consumers. Due to the
prevalent unfair trade practices, consumers‘ faith in the market has been shaken. Strong,
well-regulated retail markets that place the best interests of consumers at their heart are
necessary for consumer confidence and economic growth in the medium and longer
term. For this it is important that the shortcomings like lack of transparency, low awareness
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of risks, and poor handling of conflicts of interest are effectively tackled. Encouraging active
participation of citizens in the good functioning of markets definitely helps in maintaining
healthy competitive conditions in the market. In particular, access to redress by consumers
when consumer rights are violated by traders promotes consumer confidence in the
markets and improves their performance.
Thus promoting consumers‘ rights, prosperity and well-being are core values to be
considered both by the government and the business. For this there is a need to empower
consumers by creating a more transparent market that offers consumers real choice in terms
of price and quality. The consumers' welfare must be enhanced and increased in terms of
parameters like price, quality, diversity, affordability, safety, etc. Besides this, consumers
must be protected against serious risks and threats posed by the marketplace. Thus for
active involvement of the consumers in driving growth, there are three preconditions:
competitive markets without which there is no choice, and so no effective impetus for keen
prices, high quality and innovation; a strong but simple framework of consumer law, so
consumers are confident about their rights and empowered to take action if businesses fail
to deliver; and effective enforcement of the law so that consumers know that rogue
businesses will be effectively tackled.1 For this there is a need to adopt a holistic policy at
national and international levels which focuses on better monitoring of consumer markets;
better consumer protection regulation; enhancing product safety through the development of
market monitoring tools; putting consumers at the heart of other policies; and better informed
and educated consumers.
1.2 Importance of Consumer Protection
Consumer protection ensures that consumers receive information that will allow them
to make informed decisions, are not subject to unfair and deceptive practices have access to
recourse mechanisms to resolve disputes when transactions go awry, and are able to
maintain privacy of their personal information. At its heart, the need for consumer protection
arises from an imbalance of power, information and resources between consumers and their
service providers, placing consumers at a disadvantage. Consumer protection aims to
address these market failures and imbalances.
1 Enhancing Consumer Confidence by Clarifying Consumer Law, Department for Business, Innovation and Skills,
London, July 2012, p.15
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No doubt consumer protection and literacy promote efficiency, transparency and
deepening of retail markets. The retail public operates in a marketplace where imbalances of
information, resources and power are on the side of business institutions. Consumer
protection attempts to redress the imbalance, by giving individuals clear and complete
information on which to make informed decisions, by prohibiting businesses from engaging
in unfair or deceptive practices, and by providing adequate mechanisms to resolve disputes
between individuals and market institutions. Consumers who are empowered with
information and basic rights—and who are aware of their responsibilities—provide an
important source of market discipline, encouraging competition by offering better products
and services rather than by taking advantage of poorly informed consumers. Knowledge
helps consumers understand the information and make better choices that optimize their
wealth. Consumer protection also brings in good governance by strengthening transparency
in the delivery of services and accountability of service providers. Consumer protection helps
build demand for good governance of the sector and the strengthening of business
standards. In addition, consumer protection and literacy help promote deepening of the retail
sector, attracts consumers to access more services offline and online and thus builds public
trust and confidence in markets.
Wherever possible, consumer involvement should be actively promoted. This could
be part of a legislative framework that sets out consumers‘ responsibilities, including letting
the regulator know when things go wrong. It could be through support for consumer
organizations when they lobby on a single issue. It may be through the setting up and
mediation of on-line instant messaging tools that allow the regulator to be ―always in touch‖
with its consumers. Consumer complaints have an important role to play in regulation as
they provide a useful barometer on consumer detriment and unfair practice. Access to a fair
and transparent complaints process, with sanctions for non-compliance, remains an
essential part of an effective consumer protection framework. With the Internet generating
many small cross-border transactions, regulators also need to consider ways of securing
collective redress (as is currently being explored by the European Commission).
The European Commission has been examining the problems that consumers face
in obtaining effective redress and has published a Green Paper on Consumer Collective
Redress.2 One problem identified is where consumers who have small or scattered claims
2 Commission of the European Communities, ―Green Paper on Consumer Collective Redress‖, Brussels, 2008
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refrain from bringing an individual court action because the cost of bringing the action is
likely to outweigh the amount of damages claimed. The Commission wants to find ways to
address the issue and is seeking views on how best to facilitate redress where large number
of consumers have been harmed e.g., through overcharging through hidden charges,
overbilling, misleading advertising, etc. Nevertheless whilst collective redress may benefit
consumers in some circumstances, the need to maintain an effective means of individual
redress is essential for consumer protection.
1.3 Evolution of Consumer Rights and Legislative Frameworks
Consumers who understand their rights can play a strong part in driving growth
because they force businesses to innovate and pursue efficiency. For this they need both
competitive markets and a strong but simple framework of consumer law that can be
effectively enforced. Legislative intervention to secure the rights of consumers is not new.
From the nineteenth century in industrialised economies, the common law maxim of ‗caveat
emptor‘ proved insufficient to strike an appropriate balance between the interests of buyers
and sellers. As markets developed and information asymmetry between buyers and sellers
widened a legislative response by government was required.
In the eighteenth and nineteenth centuries, before the Industrial Revolution, most
people lived in a rural subsistence society. People consumed far fewer goods than they do
today and mostly provided their own goods and services. There were not many products to
choose from and the situation was one of ‗caveat emptor‘ - let the buyer beware. Protection
was largely through self-help and self-regulation - people produced and sold their own
goods; their customers personally knew them and they would go out of business quickly if
they offered poor goods or services. Technological developments led to growth in large-
scale manufacturing of cheap goods. Large manufacturers replaced individual craftsmen
and fanners. The population changed from subsistence to a mass consumption society,
where virtually all goods had to be bought. There was no government interference in the
deals made between buyers and sellers. The philosophy that prevailed in the 19th century
was laissez faire that is governments should not interfere in private negotiations between
people. In these circumstances, it became easier for consumers to be misled or to be sold
an inferior or defective product. In such circumstances consumers were treated unfairly by a
seller, however, there was very little he could do about it. Due to the inequality in bargaining
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power between manufacturers and consumers, market forces failed to maintain the quality
and prices of products and services.
In the 20th and 21st Century, there has been massive growth in retail chains,
advertising and use of credit. This has led to a consumer revolution and extensive variety of
goods and services are now available to consumers. Consumers in a modern market
economy often experience information asymmetry and a significant imbalance of bargaining
power. Globalization has brought new challenges to consumer protection because many
goods and services are now produced, marketed and distributed for a global market. The
gap between the knowledge and power of consumers and suppliers is even greater in a
global market. They have limited freedom to choose the conditions upon which they contract
to purchase goods and services. Even educated and sophisticated consumers, who can
read and understand, have little opportunity to change it.
Gradually laws were developed world over to prevent unfair business practices and
the common law, which has operated in the area of contracts and torts for hundreds of
years, offered some protection to consumers. Later legislations in this area have also been
enacted world over to provide adequate protection to consumers against unfair business
practices and faulty goods and services. Recent advances in technology such as the
Internet and genetically modified food today raise other challenges for consumers.
Deregulation and growth in the services sector have also presented changes in the focus of
consumer protection in recent years. In light of these challenges the law needs to be further
clarified and modified.
The history of the protection of consumer rights by law has long been recognized as
dating back to 1824. According to Professor Kerr, the Chairman of the West Australian as
Consumer Affairs Council, the voluntary consumer protection activity can be traced back
atleast to the cooperative movement in England in the early 1800s while the consumer
league formed in New York City in 1891, could boost 64 branches in 20 states by 1903.3 But
it was only during the late 1950s-60s that people became more aware of their rights as
consumers. This was partly due to people such as Ralph Nader who challenged the safety
of some consumer goods eg cars from General Motors.
3 S.S.Singh & M.K. Balachandran, Evaluation of the Effectiveness of the Implementation of the Consumer
Protection Act, 1986, IIPA, 1994, p.1
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From the 1940s, America was leaping ahead in consumer protection and by the
1960s it was really a rights-based approach. That resulted in high levels of claims and
awards in the United States. In the 1960s, protection of consumers became a matter of
concern to many ordinary citizens. A grass-root self-help consumer movement developed,
as many western consumers became dissatisfied with inferior and unsafe products. In the
USA and Britain in particular, the call for consumer protection from ordinary people was
strong. Ralph Nader's book Unsafe at Any Speed 1964, USA, and the effects of the drug
thalidomide sparked similar calls from Australians. The modern movement for consumer
rights led to the establishment of a list of basic customer rights by the US President, John
Kennedy, in 1962, which was later added to by the IOCU. In 1962, President Kennedy spoke
to the U.S. Congress about the need for a new consumer movement, a call to action that
resulted in the Consumer Bill of Rights. It was on 15th March, 1962 President John F.
Kennedy called upon the US Congress to accord its approval to the Consumer Bill of Rights.
The Bill included four basic rights: Right to Safety; Right to Information; Right to Choose;
and Right to be Heard. By 1985, the Consumer Bill of Rights expanded to include four new
rights, including: Right to Basic Needs, Right to Redress, Right to Consumer Education,
Right to a Healthy Environment.
It was on April 9, 1985 that the General Assembly of the United Nations passed a
Resolution4 adopting a set of guidelines for consumer protection and authorized Secretary
General, United Nations to persuade the member countries especially the developing ones
to adopt policies and laws for better protection of the interests of the consumers. Taking into
account the interests and needs of consumers in all countries, particularly those
in developing countries; recognizing that consumers often face imbalances in economic
terms, educational levels, and bargaining power; and bearing in mind that consumers should
have the right of access to non-hazardous products, as well as the right to promote just,
equitable and sustainable economic and social development and environmental protection,
the United Nations Guidelines for Consumer Protection (as expanded in 1999) have the
following objectives: (a)To assist countries in achieving or maintaining adequate protection
for their population as consumers; (b) To facilitate production and distribution patterns
responsive to the needs and desires of consumers; (c) To encourage high levels of ethical
conduct for those engaged in the production and distribution of goods and services to
consumers; (d) To assist countries in curbing abusive business practices by all enterprises
at the national and international levels which adversely affect consumers; (e) To facilitate the
4 General Assembly Resolution 39/ 85
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development of independent consumer groups; (f) To further international cooperation in the
field of consumer protection; (g) To encourage the development of market conditions which
provide consumers with greater choice at lower prices; (h) To promote sustainable
consumption.
The guidelines required that the governments of the signatory countries should
develop or maintain a strong consumer protection policy, in so doing; each government
should set its own priorities for the protection of consumers in accordance with the
economic, social and environmental circumstances of the country and the needs of its
population. The legitimate needs which the guidelines are intended to meet are the
following: (a) The protection of consumers from hazards to their health and safety; (b) The
promotion and protection of the economic interests of consumers; (c) Access of consumers
to adequate information to enable them to make informed choices according to individual
wishes and needs; (d) Consumer education, including education on the environmental,
social and economic impacts of consumer choice; (e) Availability of effective consumer
redress; (f) Freedom to form consumer and other relevant groups or organizations and the
opportunity of such organizations to present their views in decision-making processes
affecting them; (g) The promotion of sustainable consumption patterns.
In India fundamental law of the country -the Constitution is related directly or
indirectly with the philosophy and mechanism for the protection of the interest, health and
happiness of its citizens. The declared goal of India‘s development policy was to bring about
a rapid rise in living standard, provide full employment at adequate wages, and to reduce
inequalities arising from the uneven distribution of income and wealth. To empower the
government to control production, quality, supply and distribution and to safeguard the
interest of consumers from various angles a number of laws were enacted in the 1950s and
1960s. The Constitution includes different provisions in the Fundamental Rights and
Directive Principles of State Policy which lay emphasis on expansion of public enterprise,
avoid undue concentration of economic power in few hands and restriction of private
monopolies, safeguarding the interests of the consumers of manufactured goods and
producers of raw materials etc. to further the concept of welfare state.5 Thus consumer
justice is a part of social and economic justice enshrined in the Constitution. Following the
5 Some of these provisions are Articles 14, 19 (1)& (6), 21, 38, 39, 42, 43, 46 and 47. Further there are some entries in the concurrent list that are relevant to consumer protection. These entries are Entry 7-contracts, Entry 11A-Administration of justice, Entry 18-Adulteration of foodstuffs and other goods, Entry 33-Trade and commerce and production, supply and distribution of products of industry (where control is by Union), foodstuffs including oilseeds and oils etc., Entry 33A- weights and measures, Entry 34-Price control.
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Constitutional mandate, a number of laws6 were enacted and amended from time to time to
deal comprehensively with consumer protection which related to food adulteration,
standardisation, weights and measure, grading, packaging, branding etc. But under these
legislations the procedure is complex, cumbersome, time consuming and costly and the
scope of remedies is limited. Except for the Monopolies and Restrictive Trade Practices
(MRTP) Act, 1969, all the other Acts were mainly punitive and preventive in nature.
Therefore, the effect of these legislations in protecting consumers‘ rights was very limited.
Inspite of these Acts the consumers did not have any effective mechanism or
institutional arrangements for the speedy redressal of their grievances and also the lack of
effective popular movement isolated the consumer and his plight only increased. In 1986 the
Government accorded high priority to the programme of consumer protection. Concern for
Consumer Protection was included in Item 18 of the Twenty-Point Programme in 1986.7
Seeing the pressure mounting from various consumer protection groups and the consumers
themselves and to implement the UN Guidelines on Consumer Protection, the Parliament
enacted the Consumer Protection Act in 1986. India being one of the signatory to the
Resolution enacted the Consumer Protection Act on December 24, 1986 to fulfil its
obligation.
The enactment of the Consumer Protection Act in 1986 was a milestone in the
history of consumer movement in the country. Before this even though there were a number
of legislations to protect the consumers yet they were mostly punitive in nature and did not
provide for a holistic protection to the consumers in a cost effective and time bound manner.
There were no institutional mechanisms available to the consumers which would redress
their grievances in a simple and expeditious manner unlike the civil courts which took a lot of
time and money to decide a case. The Consumer Protection Act seeks to provide for better
protection of the consumers and stipulates the establishment of authorities for the settlement
of consumer disputes. The remedy provided under the Consumer Protection Act to the
consumer is in addition to and not in derogation of the provisions of any other law for the
time being in force.
6 like Prevention of Food Adulteration Act, 1954; Drug and Magic Remedies (Objectionable Advertisements) Act, 1954; the Essential Commodities Act, 1955; the Export Quality Control and Inspection Act, 1963; the Monopolies and Restrictive Trade Practices Act, 1969; the Standard of Weights and Measures Act, 1976; the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980
7 S. S. Singh, “Consumerism: Concept, Concern and Consumer Care‖, Proceedings of Annual Journal Body
1991, IIPA, pp. 118-135, at 122.
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The initial implementation of the Act was sluggish, slow, indicating complete lack of
interest on the part of the State Governments. Herein a number of orders were issued by
the Supreme Court for the constitution of the District Forums and implementation of the Act.
Common Cause, a registered society, espousing the cause of members of the public, filed a
writ petition two years after the Act came into force complaining that the implementation of
the provisions of the Act was sluggish, in that, the machinery for redressing the grievances
of the poor consumers at the base-level i.e. the Districts Forums, had not been set up in all
the districts in the country except a few. This Writ Petition was, therefore, moved under
Article 32 of the Constitution for a direction to the appropriate Government for urgent
implementation of the provision of the Act in this behalf. The Supreme Court passed an
order on January 17, 1990 directing that every district shall have a District Forum with the
District Judge of the district as its President. This was a stop-gap arrangement. A further
direction was given that the concerned Governments will appoint two more members to
constitute the District Forum in every district. Even though specific directions were given
from time to time to each State/U.T. separately, the progress was both tardy and sluggish.
Subsequently, by an order dated August 5, 1991 the Supreme Court directed that
only in those districts where the minimum monthly load was less than 150 cases consistently
for a period of six months, it would be open to the State / U.T. to continue the arrangement
of a sitting District Judge as the President of the District Forum with the concurrence of the
High Court concerned. In other districts where the work-load exceeded this minimum, the
Court ordered setting up of a regular District Forum for each such district. In order to ensure
that the interest of the consumers was protected each District Judge was asked to devote
atleast three alternate days in a week. Despite this order the extent of compliance reported
as on December 20, 1991 was not as significant and the progress was slow. The picture that
emerged was that once the District Judges were required to fill the gap, no doubt
temporarily, most of the State Governments had shown total lack of sense of urgency for
setting up regular district-wise fora as envisaged by the Act.
Finally, the Supreme Court in its order on 7 January, 1993 said that we must keep in
mind the fact that under Section 9 of the Act it is the responsibility of the State Government
to set-up a District Forum with the approval of the Central Government. The State
Government cannot absolve itself of this responsibility by virtually perpetuating the ad hoc
arrangement. The High Courts have not withdrawn their personnel only because they have
respected this Court's request made to them. But there is a limit beyond which an ad hoc
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stop-gap arrangement can last. In the circumstances it is most appropriate to indicate to the
State Governments that the ad hoc arrangement evolved by this Court will terminate within a
fixed time-frame.
The Supreme Court gave the following directions: (1) Wherever a sitting District
Judge is functioning as the President of a District Forum, if the workload exceeds the
minimum monthly load of 150 cases consistently for a six month period, the High Court will
convey the same to the State Government/U.T. administration which will within a period of
six months from the date of receipt of the communication appoint a regular independent
District Forum as envisaged by section 9 of the Act. After the expiry of the said six months
period, the High Court will be free to terminate the ad hoc stop-gap arrangement of loaning
the services of a sitting District Judge to work as the President of the District forum under
intimation to the State Government/U.T. administration and it will then be the responsibility of
the latter to make provision for carrying out the purposes of the Act. (2) In districts where the
workload does not exceed the minimum fixed by this Court's order dated August 5, 1991, the
ad hoc arrangement may continue for one year from today during which period the State
Government/U.T. administration will take steps to constitute an independent District Forum
for each district or if the Central Government permits one such forum for 2/3 districts clubbed
together. After the expiry of the period of one year from today, the concerned High Courts
will be free to terminate the ad hoc stop-gap arrangement of loaning the services of sitting
District Judges to work as President of the District Forum in which case it will be the
responsibility of the State Government /U.T. administration to make provision for carrying out
the purposes of the Act.8
Thanks to the Consumer Protection Act, 1986 our country is moving towards a
vibrant consumer movement mainly due to the efforts of the government, consumer
organisations and the establishments of the consumer courts. Perhaps India is the only
country in the world which has exclusive courts for consumer redressal. The Consumer
Protection Act has succeeded to some extent in bringing about fair play in the supply of
goods and services and the consumer courts have played an important role in this.
However, the rapid changes in the consumption pattern of the modern day consumer are
bringing new challenges in the consumer movement of the country, which calls for new
approaches and strategies.
8 Common Cause, A Registered Society vs Union of India And Ors 1993 SCR (1) 10
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1.4 Consumer Protection Act, 1986- An Overview
The Consumer Protection Act, 1986 is a benevolent, unique and highly progressive
piece of social welfare legislation providing for simple, speedy and less expensive remedy
for the redressal of consumer grievances in relation to defective goods and deficient
services. The Act provides effective, people oriented, broad based and efficient remedy to
consumers against unfair dealings and exploitation. Consumer Protection Act is a weapon
in the hands of consumers to fight against exploitation by traders, manufacturers, sellers and
service providers. The Act has come as a panacea for consumers all over the country. It has
become the vehicle for enabling people to secure speedy and inexpensive redress for their
grievances. With the enactment of this law, the consumers now feel that they are in a
position to declare ―sellers be aware‖ whereas previously the consumers were at the
receiving end and generally told ―buyers be aware‖. The Supreme Court in Lucknow
Development Authority v M.K.Gupta9 highlighting the importance of the Consumer
Protection Act, 1986 observed that ―In fact the law meets long felt necessity of protecting the
common man from such wrongs for which the remedy under ordinary law for various
reasons has become illusory.‖
The Act was enacted on 24th December, 1986 with an objective to provide better
protection of the interests of the consumers and to make provision for the establishment of
Consumer Councils and other authorities for the settlement of consumer disputes. The Act
has been operative in all the states of the country except the state of J&K. Before the CPA
came into operation no doubt there were other legislations to protect the consumers, but the
CPA is an improvement over the other existing laws for consumer protection as it is
compensatory in nature. On the other hand remedies under other laws are basically punitive
or preventive in nature and are designed to provide relief only in specific situations. Since
then the Act has been amended thrice in 1991, 1993 and 2003 to make it more effective,
efficient and consumer friendly.
The third amendment has brought drastic changes in the Act. Some of the important
provisions introduced are :
9 III (1993) CPJ 7 (SC) 7
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In case of death of a consumer, his legal heir or representative – a new sub-clause
(V) under Section 2(i)(b) of the Principal Act.
Exclusion of a person who avails of such service for any commercial purpose from
the category of the consumer. However, the ―Commercial purpose‖ does not include
use by a person of goods bought and used by him and services availed by him
exclusively for the purpose of earning his livelihood by means of self-employment.
―Spurious goods and services‖ in the form of new clause (oo) after clause (o) under
Section 2(1) of the Principal Act.
With a view to promote and protect within the district the rights of the consumer
―establishment of the District Consumer Protection Council‖ under the Chairmanship
of the District Collector, insertion of new Sections 8A and 8B.
Qualifications including academic and also disqualifications for members.
Re-appointment of a member for another term of five years or up to the age of sixty-
five years, whichever is earlier.
Substitution of new Section for Section 12 dealing with the manner in which
complaint shall be made.
Provisions dealing with adjournment – ―no adjournment shall be ordinarily granted‖.
Proviso to the new sub-clause (3A) under Section 13 of the Principal Act.
Power to make ―interim order‖ new sub-clause (3B) of Section 13.
Power to grant ―punitive damages‖ new proviso to clause (d) of Sub-Section (1) of
Section 14.
Power to issue ―corrective advertisement‖ to neutralize the effect of misleading
advertisement at the cost of the opposite party, new clause (nc) under Sub-Section
(1) of Section 14.
Benches of the State Commission may be constituted by the President of the State
Commission with one or more members.
Insertion of new Section 17A authorising the State Commission, on the application of
the complainant or of its own motion, to transfer any complaint pending before the
District Forum to another District Forum within the State in the interest of justice.
Creation of benches of the National Commission.
Power of the National Commission to review its own order, when there is an error
apparent on the face of record.
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Provision in regard to the execution of orders of the District Forum, the State
Commission or the National Commission.
All offences under the Consumer Protection Act may be tried summarily,
notwithstanding anything contained in the Code of Criminal Procedure, 1973. The
District Forum, the State Commission or the National Commission shall have the
power of a Judicial Magistrate of the first class for the trial of offences.
New Section 28A dealing with the procedure for service of notice.10
The Act applies to ―all goods and services‖ whether by private, public or co-operative
body unless it is especially exempted by the Central Government by a notification in the
Official Gazette.11 The Act in Section 2(1)(i) says that ―Goods‖ means goods as defined in
Sales of Goods Act, 1930. The Section 2(7) of Sales of Goods Act, 1930 provides that
―Every kind of movable property other than actionable claims and money; and includes
stocks and shares, growing crops, grass and things attached to or forming part of the land,
which are agreed to be severed from land before sale, or under contract of sale. The
consumer needs to prove ―defect‖ in goods which means any fault, imperfection or
shortcoming in the quality, quantity, potency, purity or standard which is required to be
maintained by or under any law for time being in force or under any contract, express or
implied, or as is claimed by the trader in any manner whatsoever in relation to any goods.12
Besides goods the complaint can be filed before the Forums and Commissions in relation to
―Service‖. Service means service of any description which is made available to potential
users and includes, but not limited to, the provision of facilities in connection with banking,
financing, insurance, transport, processing, supply of electrical or other energy, board or
lodging or both, housing construction, entertainment, amusement or the purveying of news
or other information, but does not include the rendering of any service free of charge or
under a contract of personal services.13 This is a very wide definition and includes any
service provided by public, private or cooperative body. The consumer must prove
―deficiency‖14 in service which means any fault, imperfection, shortcoming or inadequacy in
the quality, nature and manner of performance which is required to be maintained by or
under any law for time being in force or has been undertaken to be performed by a person in
pursuance of a contract or otherwise in relation to any service.
10
S. S. Singh, Sapna Chadah; Consumer Protection in India: Some Reflections, IIPA, ND, 2009, pp 21-23. 11
CPA,1986, Section 1(4) 12
Ibid Section 2(1)(f) 13
Ibid Section 2 (1) (o) 14
Ibid Section 2(1)(g)
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However, there are few judgments which have taken out certain services or part of
services out of the purview of the Act. Besides the judgment of General Manager,
Telecom Vs. M.Krishnan & Another,15 there is judgment of Hon‟ble Supreme Court in Bihar
School Examination Board vs Suresh Prasad Sinha16 wherein it has been held that the
Examination Board is a statutory authority whose function is to conduct school examinations.
Examination Board conducts an examination in discharge of its statutory function; it does not
offer its "services" to any candidate. Nor does a student who participates in the examination
conducted by the Board, hires or avails of any service from the Board for a consideration.
The process is, therefore, not availment of a service by a student, but participation in a
general examination conducted by the Board to ascertain whether he is eligible and fit to be
considered as having successfully completed the secondary education course. The
examination fee paid by the student is not the consideration for availment of any service, but
the charge paid for the privilege of participation in the examination. The Board is not a
`service provider' and a student who takes an examination is not a `consumer' and
consequently, complaint under the Act will not be maintainable against the Board.
The Act guarantees six rights to the consumers which are right to safety, right to be
informed, right to choose, right to be heard, right to seek redressal and right to consumer
education. Under the Act the complaint can be made by a consumer; or any voluntary
consumer association registered under the Companies Act, 1956 or under any other law for
the time being in force; or the Central Government or any State Government, one or more
consumers, where there are numerous consumers having the same interest; in case of
death of a consumer, his legal heir or representative; who or which makes a complaint.17
Thus to make remedy simple and easier, besides the aggrieved person who has locus
standi under the general law; VCOs and government can also file complaints on behalf of
consumers. Even class actions have been allowed under the Act. The consumer can file a
complaint before the three tier redressal agencies for grievance relating to defect in product,
deficiency in service, unfair trade practices, restrictive trade practices, for excess price
charged and hazardous goods and services.18 The term ―Unfair Trade Practices‖ and
―Restrictive Trade Practices‖ have been defined in Section 2(1) (r) and Section 2(1) (nnn)
respectively.
15
(2009) 8 SCC 481 16
(2009) 8 SCC 483 17
Section 2(1)(b) 18
Section 2(1)(c)
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The Act defines "consumer" as any person who buys any goods or hires or avails of
any services for a consideration. It also includes within its ambit any user of such goods
other than the person who buys such goods for consideration when such use is made with
the approval of such person and includes any beneficiary of such services other than the
person who 'hires or avails of the services for consideration when such services are availed
of with the approval of the first mentioned person. However, it does not include a person
who obtains such goods for resale or for any commercial purpose or avails of such services
for any commercial purposes.19 The explanation to the section clarifies that ―commercial
purpose‖ does not include use by a person of goods bought and used by him and services
availed by him exclusively for the purposes of earning his livelihood by means of self-
employment.
According to Section 3 of the Act, the remedy under CPA is in addition to and not in
derogation of provisions of any other law for the time being in force. However, certain
restriction has been brought in by the judgment of the Hon‘ble Supreme Court, in General
Manager, Telecom Vs. M.Krishnan & Another.20 In its judgment the Supreme Court, held
that the Indian Telegraph Act was a special law and its provisions would prevail over a
general law like the Consumer Protection Act, 1986. The court held that in our opinion when
there is a special remedy provided in Section 7-B of the Indian Telegraph Act regarding
disputes in respect of telephone bills, then the remedy under the Consumer Protection Act is
by implication barred. Section 7-B of the Telegraph Act provides that if any dispute
concerning any telegraph line, appliance or apparatus arises between the telegraph
authority and the person for whose benefit the line, appliance or apparatus is, or has been
provided, the dispute shall be determined by arbitration. Thus in relation to telegraph lines
the remedy under the Consumer Protection Act has been barred till the anomaly is suitably
rectified by an amendment to the Indian Telegraph Act. Till then the consumers are forced to
go for arbitration inspite of having a consumer friendly legislation.
The Act postulates establishment of advisory and adjudicatory bodies to safeguard
the interests of consumers. The advisory structure is in the form of Consumer Protection
Councils at Centre, State and District levels. These Councils are constituted on public-
private partnership and their purpose is to review consumer related policies of the
19
Section 2(1)(d) 20
(2009) 8 SCC 481
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government and suggest measures for further improvements. The object of this three tier
Council structure is to promote and protect the rights of the consumers.
1.4.1 Establishment of Consumer Disputes Redressal Agencies
The Act also provides for quasi-judicial adjudicatory machinery at three levels i.e.
District, State and National levels called District Forum, State Consumer Disputes Redressal
Commission and National Consumer Disputes Redressal Commission. These adjudicatory
bodies are quasi-judicial bodies and are regulated according to the principles of natural
justice. The quasi-judicial bodies are to observe the principles of natural justice and have
been empowered to give relief of a specific nature and to award, wherever appropriate,
compensation to consumers. Penalties for non-compliance of the orders given by the quasi-
judicial bodies have also been provided. The State Commissions and the District Forums
were constituted and are functioning for more than two decades now. At present there are
35 State Commissions and 634 District Forums in the country set up under the Act of which
601 are functional. (See Annexure I & II) Since inception 3827208 complaints have been
filed before these quasi-judicial bodies, out of which 3477498 have been disposed of and
349710 are pending, making the overall disposal rate for these fora 90.86 percent. (Table
1.1 and Annexure III)
Table 1.1 Total Number of Consumer Complaints Filed / Disposed of since Inception under
Consumer Protection Law (Update on 18.09.2012)
Sl. No. Name of Agency Cases filed since
inception
Cases disposed of
since inception
Cases Pending
% of total Disposal
1 National Commission 76909 66560 10349 86.54
2 State Commissions 581102 485156 95946 83.49
3 District Forums 3169197 2925782 243415 92.32
TOTAL 3827208 3477498 349710 90.86% Source: National Consumer Disputes Redressal Commission
The Act empowers the state government to establish a Consumer Disputes
Redressal Agency in each district. The state government, if it deems fit can establish more
than one District Forum in a district. The Consumer Fora is an alternative forum, less formal
and more consumer friendly for providing, speedy and inexpensive justice. Cases are
decided on the basis of justice, equity and good conscience, and Principles of Natural
Justice are required to be adhered to. The rigors of the technicalities of civil law have no
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place. Some provisions of the civil law have been incorporated in the Consumer Protection
Act which provides guidelines for conducting the proceedings and to receive evidence on
affidavits. Strict rules of evidence and procedure do not come in the way of consumer fora.
Material which has probative value and can pass the test of a reasonable man is accepted.
The foras are required to dispose of complaints in time bound manner following the
summary procedure.
Each District Forum shall consist of a President, who is, or has been, or is qualified
to be a District Judge and two other members, one of whom shall be a woman. The person
to be a member should not be less than thirty five years of age, possess a bachelor‘s degree
from a recognised university and be a person of ability, integrity and standing, and have
adequate knowledge and experience of at least ten years in dealing with problems relating
to economics, law, commerce, accountancy, industry, public affairs or administration.
A person shall be disqualified as a member if he has been convicted and sentenced
to imprisonment for an offence which, in the opinion of the State Government, involves moral
turpitude or is an undischarged insolvent, or is of unsound mind and stands so declared by a
competent court; or has been removed or dismissed from the service of the government or a
body corporate owned or controlled by the Government; or has, in the opinion of the State
Government, such financial or other interests as is likely to affect prejudicially the discharge
by him of his functions as a member; or has such other disqualifications as may be
prescribed by the State Government.
Every appointment is to be made by the State Government on the recommendation
of a Selection Committee consisting of the President of the State Commission who shall be
the Chairman of the Selection Committee, the Secretary, in-charge of the Law Department
and the Secretary, in-charge of the Department dealing with Consumer Affairs in the state as
members. In State of Rajasthan and ors vs Anand Prakash Solanki 2003 CTJ (SC) (CP), the
Supreme Court on the issue of appointment by transfer of the members of the District Forum
held that it is true that there is no cadre as such of the Presidents and Members of the
District Forums contemplated by the Act. However, the existence of one cadre of such
persons in the state is not the sine qua non to make available the powers of transfer. As
more than one District Forum is constituted in a state, there is nothing wrong in the
President and Member of the forum being appointed by transfer from another District Forum,
subject to the requirement of sub-section (1A) of section 10 being satisfied. Such
appointment by transfer shall be made by the state government but only on the
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recommendation of the Committee under Section 10(1A). Such appointment by transfer
cannot be frequent or routine feature. The power is there but is meant to be exercised
sparingly and only in public interest or in such exigencies of administration as would satisfy
the purpose of constituting the District Forum. The broader concept of transfer is a change of
the place of employment within an organisation. Transfer is an incidence of public service
and power to transfer is available to be exercised by the employer unless an express bar or
restraint on exercise of such power can be spelt out. The power, like all other administrative
powers, has to be exercised bona fide.
Every member at the District Forum shall hold office for a term of five years or up to
the age of sixty five whichever is earlier. A member shall be eligible for re-appointment for
another term of five years or up to the age of sixty-five years, whichever is earlier, subject to
the condition that he fulfils the qualifications and other conditions for appointment and such
re-appointment is also made on the basis of the recommendation of the Selection
Committee. A person may resign his office by writing to the State Government. The salary or
honorarium and other allowances payable to, and the other terms and conditions of service
of the members of the District Forums shall be such as may be prescribed by the state
government.
The State Commissions are headed by a person who is or has been a Judge of High
Court. In addition, there are not less than two, and not more than such number of members,
as may be prescribed, and one of whom shall be a woman. The qualifications and
disqualifications for the members of the State Commission are same as that of the District
Forum. Every member of the State Commission shall hold office for a term of five years or
up to the age of sixty-seven years, whichever is earlier. A member shall be eligible for re-
appointment for another term of five years or up to the age of sixty-seven years, whichever
is earlier subject to the condition that he fulfils the qualifications and other conditions for
appointment and such re-appointment is made on the basis of the recommendation of the
Selection Committee. The President of the State Commission shall also be eligible for re-
appointment.
The National Commission is headed by a sitting or retired Judge of the Supreme
Court of India. The National Commission shall have not have less than four and not more
than such number of members, as may be prescribed, and one of whom shall be a woman.
The National Commission was constituted in the year 1988. Every member of the National
Commission shall hold office for a term of five years or up to the age of seventy years,
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whichever is earlier. The President and Members of the National Commission shall be
eligible for re-appointment for another term of five years or up to the age of seventy years,
whichever is earlier.
1.4.2 Jurisdiction of the Quasi-judicial Bodies
A written complaint in relation to a product or in respect of a service, can be filed
before the District Consumer Forum if the value of the goods or services and the
compensation claimed does not exceed rupees twenty lakhs, before the State Commission if
the value of claim is more than twenty lakh upto one crore and before the National
Commission if it is above rupees one crore. As regards the territorial jurisdiction is
concerned, a complaint shall be instituted in a District Forum/ State Commission within the
local limits of whose jurisdiction, (a) the opposite party or each of the opposite parties, where
there are more than one, at the time of the institution of the complaint, actually and
voluntarily resides or carries on business or has a branch office or personally works for gain,
or (b) any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on business or has a
branch office, or personally works for gain, provided that in such case either the permission
of the District Forum/ State Commission is given, or the opposite parties who do not reside,
or carry on business or have a branch office, or personally work for gain, as the case may
be, acquiesce in such institution; or (c) the cause of action, wholly or in part, arises. The
District Forum, the State Commission or the National Commission shall not admit a
complaint unless it is filed within two years from the date on which the cause of action has
arisen. However, a complaint may be entertained after the period specified, if the
complainant satisfies that he had sufficient cause for not filing the complaint within such
period.
In M/S. Sonic Surgical vs National Insurance Company Ltd.21 the Supreme Court
departing from the plain meaning of the term ‗branch office‘ held that the expression 'branch
office' in the amended Section 17(2) would mean the branch office where the cause of
action has arisen. No doubt this would be departing from the plain and literal words of
Section 17(2)(b) of the Act but such departure is sometimes necessary (as it is in this case)
to avoid absurdity.
21
Civil Appeal No. 1560 of 2004 decided on 20 October, 2009
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1.4.3 Procedure before the Consumer Fora
Proceedings before the consumer courts are summary in nature and endeavour is
made to grant relief to the parties in the quickest possible time, keeping in mind the spirit of
the Act which provides for disposal of the cases within possible time schedule prescribed
under the Act. The se quasi-judicial bodies are supposed to function in accordance with the
principles of natural justice. The objective is that the consumer must be kept free from the
complicated judicial proceedings and complicated obligations. The manner of getting the
remedy is quite simple and free from the shackles of civil court and one does not have to
wait for years for judgment. There is even no need of lawyers to present the case before
these bodies. By the third amendment sections 12, 13 and 14 have been introduced in the
Act to ensure that the procedure is simple, easy and less time consuming. The provisions of
Sections 12, 13 and 14 and the rules made there under are applicable to State Commission
and National Commission as well.
Manner in which Complaint shall be Made
Section 12 of the Act provides for the manner in which a complaint in relation to any
goods sold or delivered or agreed to be sold or delivered or any service provided or agreed
to be provided may be filed in the District Forum by: (a) the consumer to whom such goods
are sold or delivered or agreed to be sold or delivered or such service provided or agreed to
be provided; (b) any recognised consumer association whether the consumer to whom the
goods sold or delivered or agreed to be sold or delivered or service provided or agreed to
be provided is a member of such association or not; (c) one or more consumers, where
there are numerous consumers having the same interest, with the permission of the District
Forum, on behalf of, or for the benefit of, all consumers or interested, or (d) the Central or
the State Government as the case may be , either in its individual capacity or as a
representative of interests of the consumers in general. As per Rule 14 of the Consumer
Protection Rules, 1987, a complaint containing the following particulars shall be presented
by the complainant in person or by his agent to the National Commission or be sent by
registered post, addressed to the National Commission:
(a) the name, description and the address of the complainant;
(b) the name, description and address of the opposite party or parties, as the case may be, so far as they can be ascertained;
(c) the facts relating to the complaint and when and where it arose;
(d) documents in support of the allegations contained in the complaint;
(e) the relief which the complainant claims.
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Every complaint filed shall be accompanied with such amount of fee and payable in
such manner as may be prescribed. The fee structure has been introduced in the Consumer
Welfare Rules, 1987 by the amendment in March 2004 by insertion of Rule 9A. Rule 9A
provide the fee structure for making complaints before District Forum, State Commission
and National Commission. Every complaint filed under the Act shall be accompanied by a
fee as specified in the table 1.2 in the form of crossed Demand Draft drawn on a
nationalised bank or through a crossed Indian Postal Order.
Table 1.2
Fee Structure Introduced by Third Amendment
On receipt of the complaint the District Forum by order allow the complaint to
proceed with or be rejected. It is further provided that a complaint shall not be rejected
unless an opportunity of being heard has been given to the complainant. The admissibility of
the complaint shall be decided within twenty one days from the date on which the complaint
was received. Provided where a complaint has been admitted by the District forum, it shall
not be transferred to any other court or tribunal or any other authority set up by or under any
other law for the time being in force.
Procedure on Admission of Complaint
Section 13 of the Act provides that on admission of a complaint if it relates to goods
the District Forum shall refer a copy of the admitted complaint, within twenty one days from
the date of its admission to the opposite party directing him to give his version of the case
Sl.No Total Value of Goods or Services and the Compensation Claimed Amount of fee payable
District Forum
(1) Upto one lakh rupees – For complainants who are under the Below Poverty Line holding AAY Cards
Nil
(2) Upto one lakh rupees – For complainants other than AAY card holders. ` 100
(3) Above one lakh and upto five lakh rupees ` 200
(4) Above five lakh and upto ten lakh rupees ` 400
(5) Above ten lakh and upto twenty lakh rupees ` 500
State Commission
(6) Above twenty lakh and upto fifty lakh rupees ` 2000
(7) Above fifty lakh and upto one crore rupees ` 4000
National Commission
(8) Above one crore rupees ` 5000
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within a period of thirty days or such extended period not exceeding fifteen days as may be
granted by the District Forum. The opposite party on receipt of a complaint denies or
disputes the allegations contained in the complaint or omits or fails to take any action to
represent his case within the time given by the District Forum the forum shall proceed to
settle the consumer dispute in the manner specified. Where the complaint alleges a defect in
the goods which cannot be determined without proper analysis or tests of the goods, the
District Forum shall obtain a sample of the goods from the complainant, seal it and refer the
sealed sample to the appropriate laboratory for testing along with directions. The findings
are to be reported to the District Forum within forty five days of the receipt of the reference.
The District Forum may require the complainant to deposit to the credit of the Forum such
fees as may be specified for payment to the appropriate laboratory for carrying out the
necessary analysis or tests to the goods in question. If any of the parties disputes the
correctness of the findings of the appropriate laboratory, or disputes the correctness of the
methods of analysis or test adopted by the appropriate laboratory, the District Forum shall
require the opposite party or the complainant to submit in writing his objections in regard to
the report made by the appropriate laboratory. The District Forum shall thereafter give a
reasonable opportunity to the complainant as well as the opposite party of being heard as to
the correctness or otherwise of the report made by the appropriate laboratory and also as to
the objection made in relation thereto and issue an appropriate order under section 14.
The District Forum shall, if the complaint admitted by it under section 12 relates to
goods in respect of which no testing is required or if the complaint relates to any services,
refer a copy of such complaint to the opposite party directing him to give his version of the
case within a period of thirty days or such extended period not exceeding fifteen days as
may be granted by the District Forum. Where the opposite party, on receipt of a copy of the
complaint denies or disputes the allegations contained in the complaint, or omits or fails to
take any action to represent his case within the time given by the District Forum, the District
Forum shall proceed to settle the consumer dispute: on the basis of evidence brought to its
notice by the complainant and the opposite party, where the opposite party denies or
disputes the allegations contained in the complaint, or ex parte on the basis of evidence
brought to its notice by the complainant where the opposite party omits or fails to take any
action to represent his case within the time given by the Forum. Where the complainant fails
to appear on the date of hearing before the District Forum, the District Forum may either
dismiss the complaint for default or decide it on merits.
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Every complaint shall be heard as expeditiously as possible and endeavour shall be
made to decide the complaint within a period of three months from the date of receipt of
notice by opposite party where the complaint does not require analysis or testing of
commodities and within five months if it requires analysis or testing of commodities. In the
event of a complaint being disposed of after the period so specified, the District Forum shall
record in writing, the reasons for the same at the time of disposing of the said complaint.
No adjournment shall ordinarily be granted by the District Forum unless sufficient
cause is shown and the reasons for grant of adjournment have been recorded in writing by
the Forum. Further the District Forum shall make such orders as to the costs occasioned by
the adjournment as may be provided in the Regulations made under this Act. Regulation 11
provides that the cost of adjournment, if asked by the opposite party or parties, shall not be
less than five hundred rupees per adjournment and could be more depending upon the
value and nature of the complaint as may be decided by the Consumer Forum. The
complainant, appellant or petitioner, as the case may be, may also be burdened with cost
unless sufficient cause is shown for seeking adjournment. In the circumstances of a
particular case, the amount of cost imposed may be less than five hundred rupees but in no
case less than one hundred rupees. The cost imposed may be given to the other party or
parties to defray his or their expenses or be deposited in the Consumer Legal Aid Account to
be maintained by the respective Consumer Forum, as the Consumer Forum may order.
Where during the pendency of any proceeding before the District Forum, it appears to it
necessary, it may pass such interim order as is just and proper in the facts and
circumstances of the case.
The manner in which proceedings of the District Forum is to be carried out are also
laid down. As regards the conduct of proceedings subsection (2), (2A) and (3) of Section 14
provide that every proceeding in relation to a complaint shall be conducted by the President
of the District Forum and at least one member thereof sitting together. Where a member, for
any reason, is unable to conduct a proceeding till it is completed, the President and the other
member shall continue the proceeding from the stage at which it was last heard by the
previous member. Every order made by the District Forum shall be signed by its President
and the member or members who conducted the proceeding. Where the proceeding is
conducted by the President and one member and they differ on any point or points, they
shall state the point or points on which they differ and refer the same to the other member
for hearing on such point or points and the opinion of the majority shall be the order of the
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District Forum. Section 22D further provides that when the office of President of a District
Forum, State Commission, or of the National Commission, as the case may be, is vacant or
a person occupying such office is, by reason of absence or otherwise, unable to perform the
duties of his office, these shall be performed by the senior-most member of the District
Forum, the State Commission or of the National Commission, as the case may be. However,
where a retired Judge of a High Court is a member of the National Commission, such
member or where the number of such members is more than one, the senior-most person
among such members, shall preside over the National Commission in the absence of
President of that Commission.
The District Forum shall have the same powers as are vested in a civil court under
Code of Civil Procedure, 1908 while trying a suit in respect of the following matters; (i)
Summoning and enforcing the attendance of any defendant or witness and examining the
witness on oath; (ii) the discovery and production of any document or other material object
producible as evidence; (iii) the reception of evidence on affidavits; (iv) the requisitioning of
the report of the concerned analysis or tests from the appropriate laboratory; (v) issuing of
any commission for the examination of any witness.
1.4.4 Reliefs granted by the District Forums
Section 14 is the main provision which provides the remedy to be given by the
forums and commissions. Section 14(1) provides that if after the proceedings conducted
under section 13, the District Forum is satisfied that the goods complained against suffer
from any of the defects specified in the complaint or that any of the allegations contained in
the complaint about the services are proved, it shall issue an order to the opposite party
directing him to do one or more of the following things, namely:—(i) to remove the defect
pointed out by the appropriate laboratory from the goods in question; (ii) to replace the
goods with new goods of similar description which shall be free from any defect; (iii) to return
to the complainant the price, or, as the case may be, the charges paid by the complainant;
(iv) to pay such amount as may be awarded by it as compensation to the consumer for any
loss or injury suffered by the consumer due to the negligence of the opposite party. The
District Forum shall have the power to grant punitive damages in such circumstances as it
deems fit; (v) to remove the defects in goods or deficiencies in the services in question; (vi)
to discontinue the unfair trade practice or the restrictive trade practice or not to repeat it; (vii)
not to offer the hazardous goods for sale; (viii) to withdraw the hazardous goods from being
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offered for sale; (ix) to cease manufacture of hazardous goods and to desist from offering
services which are hazardous in nature; (x) to pay such sum as may be determined by it if it
is of the opinion that loss or injury has been suffered by a large number of consumers who
are not identifiable conveniently. The minimum amount of sum so payable shall not be less
than five percent of the value of such defective goods sold or service provided, as the case
may be, to such consumers and the amount so obtained shall be credited in favour of such
person and utilized in such manner as may be prescribed; (xi) to issue corrective
advertisement to neutralize the effect of misleading advertisement at the cost of the opposite
party responsible for issuing such misleading advertisement; (xii) to provide for adequate
costs to parties.
1.4.5 Appellate and Revisional Jurisdiction
The Act grants appellate jurisdiction to the State Commissions and National
Commission. If a consumer is not satisfied by the decision of the District Forum, he can
challenge the same before the State Commission and against the order of the State
Commission a consumer can come to the National Commission. The order of the National
Commission can be challenged in the Supreme Court. Revisional Jurisdiction of the State
Commission and National Commission has been provided under Section 17 (1) (b) and
Section 21(b) respectively.
On the entertaining of writ petitions by High Courts under Article 226 and 227 of the
Constitution against the Order of the State Commission the Supreme Court in Nivedita
Sharma vs. Cellular Operators Association of India 22 has held that there cannot be any
dispute that the power of the High Courts to issue directions, orders or writs under Article
226 of the Constitution is a basic feature of the Constitution and cannot be curtailed by
parliamentary legislation. However, it is one thing to say that in exercise of the power vested
in it under Article 226 of the Constitution, the High Court can entertain a writ petition against
any order passed by or action taken by the State and/or its agency/instrumentality or any
public authority or order passed by a quasi-judicial body/authority, and it is an altogether
different thing to say that each and every petition filed under Article 226 of the Constitution
must be entertained by the High Court as a matter of course ignoring the fact that the
aggrieved person has an effective alternative remedy. Rather, it is settled law that when a
statutory forum is created by law for redressal of grievances, a writ petition should not be
entertained ignoring the statutory dispensation.
22
Civil Appeal No.10706 of 2011 dated 7.12.2011
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1.4.6 Administrative Control over the Foras
Under Section 24 B of the Act, the National Commission has been conferred with
the powers of administrative control over all the State Commissions and the State
Commission shall have administrative control over all the District Fora within its jurisdiction
in respect of following matters: (i) calling for periodical return regarding the institution,
disposal, pendency of cases; (ii)issuance of instructions regarding adoption of uniform
procedure in the hearing of matters, prior service of copies of documents produced by one
party to the opposite parties, furnishing of English translation of judgments written in any
language, speedy grant of copies of documents; (iii) generally overseeing the functioning of
the District Forums to ensure that the objects and purposes of the Act are best served
without in any manner interfering with their quasi-judicial freedom.
In State of U.P and ors v. Jeet S. Bisht23 the Supreme Court held that keeping in
view the provisions of Section 24B wherein the National Commission has to exercise
administrative control over State Commissions and District Forums throughout the country,
no officer of the executive is to carry out inspection of the District Forums and exercise any
administrative control thereon. Further for the said purpose one post of Additional /Joint
Registrar placed in hierarchy between the Registrar and Deputy Registrar be created and
manned in the NCDRC at the earliest.
1.4.7 Enforcement of Orders
Section 25 of the Act provides that, where an interim order made under this Act is not
complied with the District Forum may order the property of the person, not complying with
such order to be attached. In case any amount is due from any person under an order made
by the District Forum the person entitled to the amount may make an application to the
District Forum and the District Forum may issue a certificate for the said amount to the
Collector of the district and the Collector shall proceed to recover the amount in the same
manner as arrears of land revenue. As per Section 27 of the Act, in case a trader or a
person against whom a complaint is made or the complainant fails or omits to comply with
any order made by the District Forum, such a trader or person shall be punishable with
imprisonment for a term which shall not be less than one month but may extend to three
years, or with fine which shall not be less than two thousands rupees but which may extend
to ten thousand rupees or with both.
23
2002 680 (SC) (CP)
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1.4.8 Dismissal of Frivolous or Vexatious complaints
According to Section 26 where a complaint instituted before the District Forum, the
State Commission or as the case may be, the National Commission, is found to be frivolous
or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make
an order that the complainant shall pay to the opposite party such cost, not exceeding ten
thousand rupees, as may be specified in the order.
1.4.9 Supreme Court on Appearance of Advocates in Consumer Fora
In a landmark judgment in C. Venkatachalam Vs. Ajitkumar C. Shah24, the Supreme
Court held that an 'agent' appointed by a party can plead a case before the Consumer
Disputes Redressal Forum, even though he may not be an advocate. The Supreme Court
upheld the judgment of the Bombay High Court which allowed non-advocates to appear and
practice before the Consumer Forums. The bench comprising of Justice Dalveer Bhandari,
Justice M.K. Sharma and Justice Anil R. Dave also suggested a mechanism whereby non-
lawyers could be accredited to appear before the Consumer Forums as representatives, on
a regular basis. The basic issue involved in these appeals was whether a person under the
purported cover of being an "agent" can represent large number of persons before the
forums created under the Consumer Protection Act, 1986 and the Rules made thereunder.
According to the appellant Rule relating to agents cannot be used to by passing stipulations
under the provisions of the Advocates Act, 1961, more particularly under Sections 29, 31
and 32. Rule 2(b) of the Consumer Protection Rules, 1987 defines an `agent' as
under: "agent means a person duly authorized by a party to present any complaint, appeal
or reply on its behalf before the National Commission." The Supreme Court said that the
issue is - Do the Rules permit a party to have an `Agent' for merely presenting the papers on
its behalf or can the Agent even act and argue? A perusal of the provisions show that while
the advocates have not been debarred from pleading and appearing, the parties have been
given an option to either appear personally or be represented by "duly authorized" agents.
Every advocate appointed by a party is an agent. However, the agent as contemplated
under the rules need not necessarily be an advocate. The provision in the Rules promotes
the object of the statute. It is meant to help the consumer to vindicate his right without being
burdened with intricate procedures and heavy professional fees. In the very nature of
things, the disputes under the 1986 Act can involve claims for small amounts of money by
way of compensation. Engagement of advocates in all such matters may not be
24
Civil Appeal No.868 of 2003 decided on 29 August, 2011
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economically viable. It is equally possible that the claim may involve professional expertise.
For example, a person may sue a hospital for medical negligence or an Architect for a faulty
design or a building contractor for defective work. In such cases, a professional like a doctor,
architect or an engineer may be more suitable than an advocate. Thus, both the parties have
been given an option to choose from an advocate or any other person who may even be a
professional expert in the particular field. Such an interpretation is not only literally correct
but also promotes the declared objective of the statute. It helps the claimant and the
defendant equally. It does not violate any provision of the Advocates Act.
The Supreme Court further directed the National Commission to frame
comprehensive Rules regarding appearances of the agents, representatives, registered
organizations and/or non-advocates and governing their qualifications, conduct and ethical
behaviour as expeditiously as possible, in any event, within three months from the date of
communication of this order to ensure smooth, consistent, uniform and unvarying functioning
of the National Commission, the State Commissions and the District Forums. The National
Commission may consider following suggestions while framing rules.
The Commission may consider non-advocates appearing without accreditation - A
party may appoint a non-advocate as its representative provided that the representative –
(1) is appearing on an individual case basis; (2) has a pre-existing relationship with the
complainant (e.g., as a relative, neighbour, business associate or personal friend); (3) is not
receiving any form of direct or indirect remuneration for appearing before the Forum and files
a written declaration to that effect; (4) demonstrates to the presiding officer of the Forum that
he or she is competent to represent the party.
The National Commission may consider creating a process through which non-
advocates may be accredited to practice as representatives before a Forum. Non-advocates
who are accredited through this process shall be allowed to appear before a Forum on a
regular basis. The accreditation process may consist of – (1) a written examination that tests
an applicant's knowledge of relevant law and ability to make legal presentations and
arguments; (2) an inspection of the applicant's educational and professional background; (3)
an inspection of the applicant's criminal record; (d) the National Commission may prescribe
additional requirements for accreditation at its discretion provided that the additional
requirements are not arbitrary and do not violate existing law or the Constitution.
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A representative who wishes to receive a fee must file a written request before the
Forum. The presiding officer will decide the amount of the fee, if any, a representative may
charge or receive. When evaluating a representative's request for a fee, the presiding officer
may consider the following factors: (1) the extent and type of services the representative
performed (2) the complexity of the case; (3) the level of skill and competence required of
the representative in giving the services; (4) the amount of time the representative spent on
the case; and (5) the ability of the party to pay the fee. If a party is seeking monetary
damages, its representative may not seek more a fee of more than 20% of the damages.
The National Commission to create a code of conduct which would apply to non-
advocates, registered organizations and agents appearing before a Forum. Further the
presiding officer of a Forum may be given specific power to discipline non-advocates,
agents, authorized organizations and representatives for violating the code of conduct or
other behaviour that is unfitting in a Forum. In exercising its disciplinary authority, the
presiding officer may –(1) revoke a representative's privilege to appear before the instant
case (2) suspend a representative's privilege to appear before the Forum (3) ban a
representative from appearing before the forum (4) impose a monetary fine on the
representative.
1.5 Research Framework
1.5.1 Statement of Problem
No doubt Consumer Protection Act is a very unique and highly progressive piece of
social welfare legislation and the provisions are intended to provide effective and efficient
safeguards to the consumers against various types of exploitations and unfair dealings. It is
a handy weapon for consumers to ensure accountability of producers of goods and
providers of services. In the International Conference on Consumer Protection held in
Malaysia in 1997, the Indian Consumer Protection Act was described as one ―which has set
in motion a revolution in the field of consumer rights, the parallel of which has not been seen
anywhere else in the world‖. Till now 3827208 cases have been filed before the redressal
machinery out of which 3477498 have been disposed of making the overall disposal rate
90.86 percent.25
25
Total Number of Consumer Complaints Filed / Disposed of since Inception under Consumer Protection Law as on 18.09.2012, http://ncdrc.nic.in/
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The Act has been in operation for 25 years, still there are deficiencies and
shortcoming in respect of its operation which have made it difficult for the consumers to get
relief in the forums. The purpose of the three tier quasi-judicial structure was to give quick
justice to the consumers; however, the machinery is riddled with many problems making it
difficult for the complainant to get justice in the prescribed time. The problem is further
aggravated by the low level of awareness among the consumers. Even after 25 years of
consumer movement concerns are being raised regarding the level of awareness of the
consumers‘ inspite of many steps taken at the central and state government level to
generate awareness among the masses.
The success of the consumer movement depends upon the level of awareness
among the consumers at large about their rights and remedies available to them. The laws
can only give certain rights to the consumers, but its functioning and implementation largely
depends on the awareness and efforts of the consumers themselves. As regards the level of
awareness is concerned the Report of the CAG on the Performance Audit of the
Implementation of the CPA and rules in March 2005 revealed that Sixty-six percent of the
consumers interviewed were not aware of consumer rights and 82 percent were even
unaware of the Act. Nearly 49 percent of the aware consumers had come to know about the
Act only in the last 4 years though the Act had been in existence for the past 18 years.
Overall, only 13 percent of the consumers reported to have been aware of the existence of
any redressal agency. The consumers were not aware of the features of the simple and
inexpensive system of lodging complaint.
The position of the rural consumer is still worse. According to one of the study
―Consumer Awareness in Rural India - An Empirical Study‖ on conducted by CCS, IIPA in
2009 indicates that the level of awareness among the rural masses is much less as
compared to their urban counterpart. 92.4 percent of the respondent were not aware about
the CP Act. 34.2 percent of the respondent knew about ‗Jago Grahak Jago‘. Of the
respondents who were aware about the Act, 34.2 percent received the information from the
electronic media i.e. TV/ Radio while 6.5 percent gathered information from newspapers/
journals and 6.5 percent from NGOs. Of the respondents aware about CP Act only 22.6
percent were aware about the redressal mechanism under the Act whereas 77.4 percent
were unaware about it. Of the total respondents aware about the Act, 83.7 percent did not
know as to who can file a complaint, 13.5 percent knew that the complaint can be filed by
consumer and 1.7 percent said that any VCO can file a complaint. Only 9.2 percent of the
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respondents agreed that they were aware about their rights as consumers while 90.84
percent answered in negative. 32.6 percent respondents said that the consumers were well
protected by law while 67.4 percent could not answer this question. Only 15 percent agreed
that consumer welfare schemes are well implemented by the government and 85 percent
respondents answered the question in negative. Awareness about ‗Jago Grahak Jago‘ was
quite high. 34.2 percent of the respondents knew about the slogan. However, majority of
respondents (65.8 percent) did not know what was being conveyed through the
advertisement.
The purpose of setting up three tier quasi-judicial machinery under CPA was to
provide quick, speedy and inexpensive redressal to the consumers. That‘s why these
Forums and Commissions were kept free from the procedural requirements of CPC and
Evidence Act and were to function on the principles of equity and good conscience. They are
to function in accordance with the Principles of Natural Justice and follow summary
procedure to enable them to render speedy justice. By way of third amendment in 2002 the
time period for the disposal of complaints has also been specified. The District Forums are
to dispose of a complaint within a period of three months if no testing is required and within
five months if testing of goods is required. Inspite of all these the working of the Forums is
being criticized for the long delays and the technicalities which have crept into the system.
The Centre for Consumer Studies conducted two studies on the working of the State
Commission and District Forums in the States of Jharkhand (2010) and Uttar Pradesh
(2011) and found that there are a number of issues which are affecting the efficiency of the
District Forums.
The research findings indicate that though most of the respondents are satisfied with
the major provisions of the Consumer Protection Act. Some feel that there is a need to
amend the Act to give more teeth to the consumer courts. There are a number of reasons
for the delay in disposal of cases. The procedures to be followed by the consumer courts are
very simple but with the involvement of the advocates the process has become very
technical and legal. Even though the Act does not envisage the involvement of an advocate
yet based on their experience majority of the respondents are of the view that the advocates
should represent the cases. As the manufacturers and service providers are hiring the
services of advocates the consumer is at a loss as he lacks the required knowledge of the
legal procedures. Moreover, there are a number of technical issues involved, which only the
advocates know. Further, the District Forums have been facing a number of problems, like
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lack of manpower, funds, infrastructure, facilities for lab testing of products, non-cooperation
by the parties, etc. The computers have been acquired and installed but due to lack of
manpower it is not of much help. The record rooms are not up to mark and there is not much
space to store the records. Computerisation of the records is the need of the hour. The
members do not have any financial power which is creating a lot of delay. Even adequate
stationery is not available in some of the District Forums. Moreover, the working condition of
the employees also needs to be improved.
The Execution of the orders of the District Forums is a major problem. The District
Administration and particularly the police do not cooperate. No policeman is attached to the
District Forums for execution of the orders of the forum. As a result large number of
execution cases is pending mainly due to non-execution of warrant of arrest or attachment
order by the police authorities. This is sending a wrong signal among the consumers. The
Act needs to be amended and appropriate measures are required to be taken to ensure that
execution of the orders of the forum is done in a time bound manner, otherwise the
consumer will lose faith in the consumer courts.
As the scope of the consumer courts and the nature of complaints being filed are
increasing, it is important that efforts are made to build the capacity of the members.
Training is required to be more systematic. Users‘ manuals in the local languages should be
prepared for the use of the members of the District Forums. It would be better if induction
training programmes are organised for the members of the District Forums. The
recommendation of the Shenoy Committee set up by the NCDRC should be accepted by the
State Governments and funds are made available to organise such induction training
programmes. Though the scheme of computerisation and computer networking of consumer
forums was launched, yet the working of the District Forums has not improved to a large
extent. The District Forums are not able to avail the full benefit of computerisation and
computer networking. Adequate staff needs to be sanctioned for manning the computers.
The members and other staff of the Forums should be imparted training in computer literacy
and the operation of the software.
Major impediment in the implementation of the Act is lack of awareness among the
consumers. Due to this the consumers do not approach the consumer courts for redressal of
their grievances. Efforts must be made to educate the consumers about their rights and also
create awareness about the benefits of the Consumer Protection Act. The District Forums
can play a major role at the District level in organising suitable awareness programmes for
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the consumers. At present the funds for awareness programmes are at the disposal of the
District Administration and not the District Forum. Due to the lack of awareness about their
rights and also the procedures under the Act, the consumers hesitate to approach the
consumer forums in case of a complaint. Majority of the respondents felt that the NGOs
should play a proactive role and help the consumers in filing of the complaints. Involvement
of NGOs in filing of the complaints will streamline the process and help in quick disposal of
complaints. The consumers are not aware of the procedures of filing a complaint and the
documents they are required to submit, the NGOs could themselves file the complaint on
behalf of the consumers as provided in the Consumer Protection Act. This will avoid delay in
disposal of cases.
To provide better protection to the consumers the Act envisages two types of
structures one is the quasi-judicial structure to provide redressal for the grievances of the
consumers and the other is the Council structure at the three levels- Central, State and
District levels. The basic purpose of this council structure is to safeguard the rights of the
consumers. The Consumer Protection Act seeks, inter alia, to promote and protect the rights
of the consumers by establishing Consumer Councils. The Councils are supposed to
function on the public-private partnership basis wherein the official and non-official members
of the Councils will discuss the problems of the consumers and recommend accordingly.
These Councils are required to deliberate on the issues concerning consumer protection by
meeting as per the requirement of the Act and to make recommendations to the respective
governments for enacting measures for their enforcement. However, the council structure
has not proved to be very successful in solving consumer problems. As was also pointed by
the CAG report that the councils are not functioning in an effective manner and there is need
to make these councils more effective and purposeful to promote and protect the rights of
the consumers.
1.5.2 Objectives of the Study
In view of the above, the objectives of the study were: -
To assess the level of awareness among the consumers regarding their rights and remedies available to them under the CPA;
To analyse and evaluate the working of the quasi-judicial machinery under the Act;
To assess the effectiveness of the CP Act in redressal of consumer grievances;
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To study the functioning of the consumer councils established at the central, state and district levels; and
To suggest appropriate measures to make the machinery under the Act more effective and efficient to achieve the purpose of the Act.
1.5.3 Methodology
The present study is an empirical research based on both primary and secondary
data. It is a blend of both descriptive and analytical methods of study. For the purpose of the
study primary data was collected through a set of questionnaires and by way of discussions
with various stakeholders. Search conferences have also been organized to get information.
The approach was to seek information from various stakeholders involved in the protection
of consumer rights. The secondary data comprising of records of the DFs, SCDRCs,
NCDRC, Department of Food, Civil Supply and Consumer Affairs in various states, various
published and unpublished reports, books, articles, and journals etc. have also been used
for the purpose of the study.
To assess the impact and the level of awareness of the consumers regarding the
consumer rights and other aspects related to consumer protection a questionnaire was
administered to the consumers. The information regarding level of awareness about the CP
Act and its provisions has been gathered through primary surveys. To study the
effectiveness of the CP Act and the working of the Dispute Redressal Machinery at the three
levels, two sets of questionnaires were prepared - one for the Presidents and Members of
the National Commission, State Commissions and District Forums and another for the
Complainant / appellant. Discussions were also held with the Presidents and the Members
of the Consumer Forums/ Commissions to gather their views on the working of the Forums/
Commissions. To study the functioning of the Consumer Councils at State as well as District
level, CCS research team held discussion with the Secretary and Director of Food, Civil
Supply and Consumer Welfare Departments of the selective States and also with the District
Collector/Magistrate, SDM and District Civil Supply Officers of the selected Districts.
Discussions have also been held with state and district level officials to evaluate the role of
the State Government in making the CP Act more effective.
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1.5.4 Sampling Technique
The survey methodology for this study was stratified random sampling. Since India is
a very heterogeneous country and having diverse geographic, socio – cultural and economic
characteristic, a stratified random sampling could reflect the characteristics of the population
as a whole. Firstly, five states from six mentioned regions (as per ToR of this project) of
India were selected for the study. These states were selected in a way that they can best
represent the entire geographical regions of the country. The states were: Uttar Pradesh
from North, Gujarat from West, Karnataka from South, Odisha from Central Region and
Tripura from North East. From each state two districts were selected. Selection of Districts
was mainly based upon the ratio of two variables - size of the population and the number of
cases filed in the respective DCDRF of that particular district.
Table 1.3
Stratification Criteria of Sample
Sr. No. Sampling Strata Selection Criteria
1. State 1. Five states from six mentioned regions (as per ToR of this project) of India.
2. District 1. Higher and Lower ratio of total population with number of complaints filed in the DCDRF in the last six months.
2. Both of the Districts should not be adjoining to each other.
3. Districts must represent the tribal, mountainous and coastal regions of India.
3. Block/Taluk 1. Block/Taluk with higher and lower literacy level.
2. Block/Taluk with higher concentration of SC/ST population.
4. Villages Randomly selected
5. Consumers 1. On the basis of rural and urban areas of the district.
2. Randomly as everyone is a consumer.
6. Complainants/ Appellants 1. DCDRFs, SCDRCs and NCDRC
7. Redressal Agencies 1. Presidents and Members of the DCDRFs, SCDRCs and NCDRC
Subsequently, within the states all the districts were ranked accordingly with their
ratio value. After that one district with higher value and one district with lower value were
selected for the study. While selecting the districts care was taken that these districts should
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not be adjoining and they must represent the tribal, mountainous and coastal regions of
India as per the guidelines of the Department of Consumer Affairs.
After selecting the districts further stratification was made on the basis of rural and
urban areas to address the fact that there is wide distribution of population in India. 70
percent of country‘s population is still living in rural areas and 30 percent in urban areas.
Hence to get the opinion of both rural and urban consumers; six villages spreading across
the three Developmental Blocks/Taluks and three colonies of the District town were selected
in the study. As far as Blocks/Taluks are concerned the selection criteria was as follows; (1)
Block/Taluk with higher literacy level, (ii) Block/Taluk with lower literacy level, and (iii)
Block/Taluk with high concentration of SC/ST population. The selection of two villages from
each Block/Taluk and the respondents therein was done randomly. (Table 1.3)
The study tried to get the opinion of all the stakeholders involved in the consumer
protection movement in India such as consumers, complainants, redressal agencies,
VCOs/NGOs, legal experts, policy-making institutions, government officials, departments,
social activists and others. Since their role, responsibilities and interests are different,
therefore, this study adopted various methods for the data collection. They were as follows:
Interview Schedule – Different structured questionnaires were developed for in-depth interview of the consumer, complainants/ appellants, Presidents/Members of the Forums and Commissions. The questionnaires were subjected to reliability test by pre-testing the constructed tools by administering it to 10% of the respondents. The questionnaires were modified based on the responses received.
Focus Group Discussion- FGDs were organized with the NGOs/VCOs and Panchayat Level Officials to get their opinion.
Formal Meetings- Meeting with Department of Food, Civil Supplies and Consumer Affairs in various states as well as officials at District level who are looking after the implementation of CP Act.
1.5.5 Sample Size
The sample size consists of 10 districts from 5 states (two from each state). From
each district 200 persons from different sections of the society and 25 complainants from the
respective DCDRF were selected (total sample size of 2000 consumers and 175
complainants). Apart from this 10 District Forums, 5 State Commissions and National
Commission have also been taken up for the study. For the purpose of study earlier we
proposed to interview 30 members from 10 District Forums, 15 members from 5 SCDRCs
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and 10 members of NCDRC, but to have a broader perspective, Questionnaire was
administered to all the District Forums of the five selected states inviting their views and
suggestions on the working of the quasi-judicial machinery. Out of total 162 District Forums
in the five states we received responses from 112 Presidents and 193 Members of the
District Forums, which covers 70 percent of the study area. Their opinions have been
incorporated in this report. Apart from this CCS research team also organised Search
Conferences at district level. One Validation Seminar was also organised after the
presentation of the report to Department to get suggestions and to validate the findings. The
study was completed in six months.
Table 1.4
Sample Plan
Respondents 10 Districts (2 District from 5 Selected States)
5 State Commissions
National Commission
Total
1 Cross Section (Consumer, NGOs, Advocates, Officials etc.)
2000 (1250) (200 respondents from each District, 200 x 10)
2000 (1250)
2 Complainants
175 (250) (25 appellants from each District Forum, 25 x 10)
65 (50) (10 appellants from each SCDRC, 10 x 5)
13 (20) (20 appellants from NCDRC)
253 (320)
3 Presidents & Members of Adjudicatory Bodies
305 (30) (3 Members from each District Forum, 3 x 10)
10(15) (3 Members from each SCDRC, 3 x 5)
(0)10 (10 Members from NCDRC
315 (55)
4 Members of Consumer Protection Councils
30 (3 Members from each District Council, 3 x 10)
15 (3 Members from each State Council, 3 x 5)
10 (10 Members from Central Council)
(55) Questionnaire were sent but very few responded
Grand Total 2510 90 23 2623 (1680)
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Figure 1.1
1.5.6 Time Frame
Table 1.5
Phases Work Plan 1 2 3 4 5 6
I Preliminary Work (Manpower Planning
identification of Respondents & Developing
Interview Schedule)
II Collection of Primary and Secondary
Data and Search Conferences
III Data Compilation & Analysis
IV Draft Report and Validation Seminar
V Final Report
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1.5.7 Limitations of the Study
1. The study began with the presumption that basic data of the NCDRC, SCDRCs and District Forums would be available through the CONFONET project, NCDRC, and DCA but not much was available and therefore, data had to be generated. Record compilation and management is poor.
2. There was limited cooperation from some of the organisations in terms of providing data, reports, literature and information about consumer activities.
3. The complainants and the lawyers were not very cooperative during the survey.
4. June and July happens to be vacation period for NCDRC and SCDRCs and therefore, time taken to collect data was more than anticipated.
5. The Presidents and Members of the redressal agencies were hesitant to frankly give their views/opinions about the working of the three tier redressal mechanism.
Table 1.6
List of Surveyed States, Districts, Blocks/Taluks and Villages
State District Block/Taluk Village
Gujarat Junagadh Mendarada Mendarada, Manpur Nani Khodiyar, Jambur Chodvad,Kukuswada
Malia
Talala
Surat (Main) Palsana Dandi, Dolikui Lingad, Mahua Lavachha, Dumbhol
Mahua
Olpad
Karnataka Rural Bangalore Nermangala Channahalli, Shivagange Honnannahalli, Obalapura Akkupete, Pindkur
Dod Ballapur
Devanhalli
Shimoga Shikaripura Kommanalu, Holehonnur Malige, Gopala Balagatte, Hreikasui
Tirthalli
Bhadravati
Odisha Balasore Nilgiri Stattion Sahi, Kahaliya Baga, Khaliya Ambudiya, Keshi
Bhograi
Ramona
Puri Konark Raul Patna, Siripur Gopinathpur, Naobadi SiulitotamaliSahi, Biranavasnagar
Krushna Prasad
Puri Sadar
Tripura West Tripura Mandai Mangal Sadhupur, Budhiya Pada Jogindar Nagar, Madhuban Majlispur, Mohanpur
Dukli
Jirania
South Tripura Matabari Dodpushkarni, Chaltabari Pabitra Rambadi, Katalitya Badi Duno Phoolkumari, Ichacharra
Killa
Kakraban
U.P. Meerut Daurala Mavimira, Bhagwanpur Bazar Phaphunda, Khedi Tigri, Bijoli
Kharkhoda
Mawana Kalan
Azamgarh Mehnagar Umarpur, Ramgarh Baridih, Gangapur Narsinhgpura, Sidhari
Lalganj
Palna
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CHAPTER II
IMPACT OF CONSUMER PROTECTION ACT (Perception of Consumers - Cross Section)
2.1 Introduction
The Consumer Protection Act, 1986 is a major social welfare legislation aimed at
better protection of the consumers. The Act envisages setting up of a three tier redressal
mechanism and also Consumer Protection Councils. The Act defines as to who is a
Consumer and also provides the remedies that are available to the consumers. It‘s a historic
legislation that provides for compensation for harassment and mental agony. The Act has
been in operation for nearly twenty five years. The structures and systems required under
the Act have been set up. Empowering the Consumers through enforcement of their rights is
one of the main features of the Act. Therefore, one of the objectives of the study was to
evaluate and assess the impact of the Consumer Protection Act in empowering the
consumers. This was to be in terms of their awareness about the Act and its basic features,
their behaviour as consumers in the market and also their general perception about the
usefulness of the Act in consumer protection as well as promotion of consumers‘ rights. To
elicit the views of the consumers a structured questionnaire was used apart from Focused
Group meetings and discussions. For the purpose of the study 2100 consumers from ten
districts spread across five states were selected. The sample consisted of a cross section of
consumers of all age groups. The identification of the consumer was not a difficult task as
everyone is a consumer. From cradle to grave one is a consumer hence it is easy to identify
as to who is a consumer.
2.2 Need for Consumer Empowerment
Consumer policy is increasingly at the crossroads of the main challenges that face
our citizens, economy and societies. The sophistication of retail markets and increasing
complexity of products and markets, is increasing the role of consumers. Services in general
and liberalised services in particular are set to grow further. While considerable benefits can
be expected, the transition will pose challenges for consumers and regulators to ensure
consumer welfare is maximised. While many can benefit, the most vulnerable which include
rural, women, children and ageing population are less well equipped. Therefore, it is need of
the hour to empower consumers to help them maximise their welfare, as well as to drive
competition and innovation.
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‗Consumer empowerment‘ is a term often used to mean that consumers are
confident in how they shop and demand goods and services from business. However, there
is much more to empowerment. Consumers should not only feel confident when they make
decisions, but also be able to make the best decisions for themselves, armed with the best
available information and best available choice tools. Consumers who know their rights and
demand them, drive the development of new products and services and can work together
to get the best deals. Such empowered consumers are a strong agent of growth.1 Consumer
empowerment is both a function of the skills, knowledge and assertiveness of consumers
themselves, and the protection, rules and institutions designed to support them as they play
their part. The EU Consumer Policy Strategy adopted by the European Commission for the
years 2007-2013 defines an empowered consumer as a consumer with ―real choices,
accurate information, market transparency and the confidence that comes from effective
protection and solid rights‖.2 Empowerment comes both from the capacity of consumers
themselves but also the strength of the infrastructural framework (regulations, public
authorities, consumer organisations, etc.). Consumer empowerment depends not only on
good cognitive skills, but also on knowledge of consumer rights and information, well-known
and effective non-governmental organisations and public authorities, an active media and
simple and accessible means of redress. Understanding consumers‘ skills, knowledge and
assertiveness is essential if consumer policy measures are to correspond to their actual
daily behaviour.3
It is often suggested that we are living in an ‗information age‘, in which information is
freely exchanged, and that individuals are able to access knowledge in a way that would
have been difficult or impossible prior to the advent of the computer, mobile phone and the
internet. With internet and social media opening new channels information is much more
readily available than it was even five or ten years ago. Consumers now have many more
ways by which they can try to find good information about products and businesses as well
as knowledge of their rights before they make a purchase. Many of these changes are to be
welcomed, since they have provided consumers with a wealth of information about the
choice, quality and cost of products and services, which has driven down prices.
1 Better Choices: Better Deals-Consumers Powering Growth, Department for Business, Innovation and Skills, London, April 201, http://www.bis.gov.uk at p.10
2 EU Consumer Policy Strategy 2007-2013, European Communities, 2007, q.in Special Eurobarometer 342- Consumer Empowerment Report, April 2011, p. 5
3 European Commission, Commission Staff Working Paper-Consumer Empowerment in the EU, Brussels, 07.04.2011 p. 1-3
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However, access to more information does not necessarily help on its own. The
challenge for consumers is often in knowing what relevant information is and what is not;
knowing what is accurate and what is not; and what can be trusted and what cannot. We
need to create an environment where government and businesses provide information to
consumers in simple and relevant ways and where consumers are readily able to access,
control and use information that businesses hold about them. Consumers often lack
understandable information to support their choices, or may not trust information provided to
them. Most of the time it is difficult for him to truly know the quality of a product until he has
actually bought and used it.
2.3 Consumer Awareness- A Major Impediment in India
Despite its shortcomings, the Consumer Protection Act, 1986 has generated
enormous public interest and has given boost to consumer movement in the country. A large
number of consumers are approaching the consumer foras for redressal of their grievances
at comparatively low cost and shorter period of time. Inspite of the large number of
complaints being filed in the country the fact remains that the ignorance and lack of
awareness and knowledge about the Act especially among the vulnerable groups is a major
impediment for the consumers to make use of the machinery under the Act. Though the
general awareness about the Act is gradually on an increase but still majority whether urban
or rural consumers are unaware about the substantive provisions of the Act.
After the enactment of the Consumer Protection Act, 1986, the first independent
evaluation study of the implementation of this Act was done through a study conducted by
IIPA in 1994. It was found that large majority of the consumers belonging to various
categories and income groups were completely ignorant of the existence of the CPA and the
redressal agencies created under it. Only 16.44 percent of the respondents were aware
about the Act. Out of those who were aware about the Act, 89.98 present did not know
where to go and how to make a complaint. That is they were completely ignorant regarding
the procedure under the Act. Awareness about the District Forum was also very low. 76.63
percent respondents did not know about the Forum. 4
Eleven years later, according to a survey commissioned through ORG Centre for
Social Research by the C&AG, the position had improved only marginally. The survey was
conducted in July-August, 2005 in 25 States/ UT covering 48,732 consumers, 6237
4 S.S.Singh & M.K. Balachandran, ―Evaluation of the Effectiveness of the Implementation of the Consumer
Protection Act, 1986, IIPA, 1994, pp.51-54
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complainants, 249 manufacturers / service providers, 39 NGOs and 34 laboratories. The
report of ORG-MARG revealed that: 5
Sixty-six percent of the consumers interviewed were not aware of consumer rights and 82 percent were even unaware of the Act.
Nearly 49 percent of the aware consumers had come to know about the Act only in the last 4 years though the Act had been in existence for the past 18 years.
Overall, only 13 percent of the consumers reported to have been aware of the existence of any redressal agency.
A majority of the complainants came to know about the redressal agencies through electronic media (48 percent), print media (61 percent) and friends/relatives (68 percent). NGOs were not a popular source of awareness as only 4.9 percentage of the complainants attributed their awareness to the work of NGOs.
The consumers were not aware of the features of the simple and inexpensive system of lodging complaint in the absence of any focused awareness programme launched by the Ministry or the States in this regard. The beneficiary survey carried out by ORG – MARG revealed that 78 percent of the respondents were carrying a negative opinion of the efforts made by the government or had no idea about the same and were not aware that they could directly represent themselves in the Consumer Forums.
It is pertinent to note that lack of awareness in this regard had deprived the consumers of the benefit of the adjudication mechanism as out of the total expenditure of ` 3387 incurred by the consumers on each case in the Consumer Forum on an average, as much as ` 2787 (82 percent) was the expenditure on
advocates.
Therefore, one of the major hindrances in the consumer movement in the country is
the lack of awareness among the consumers. The consumers apart from being unorganized
do not have the mechanism to understand their rights and responsibilities. These studies
reveal not only lack of awareness but lack of consumer education as well. A lot more needs
to be done on this front. The right to consumer education has been recogonised under the
Consumer Protection Act, 1986. However, unless awareness increases regarding the rights
of the consumers, consumer education remains a distant dream.
2.4 Strategy for Consumer Education6
Throughout our lives, we develop skills and seek information to help us deal with the
day-to-day business of living. We learn and use these skills in a wide range of situations.
When they are developed in a consumer context and applied to information about goods and
5 CAG, Performance Audit of the Implementation of the Consumer Protection Act and Rules-Report of the
Comptroller and Auditor General of India for the year ended March 2005, Union Government (Civil), Performance Audit, 2006, p. 9
6 Consumer Education: A Strategy and Framework, OFT, 2004
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services, we call the process consumer education. Consumer education happens in lots of
different ways, for example at school, college, university and in adult education. We learn
from family, carers and friends. We learn at work and through our leisure activities.
Consumer education is a part of formal education and lifelong learning. Consumer education
can help us to get the best deals and avoid the worst pitfalls. If things do go wrong,
consumer education can help us sort out our problems quickly and efficiently. An assertive,
self-reliant consumer helps promote vigorous, competitive markets by demanding high
standards from business.
For giving consumers the skills and knowledge to function confidently, effectively and
responsibly when buying goods and services, there is need to have a strategy that aims to
deliver targeted, effective consumer education by increasing coordination and making the
best use of available resources. It will do this by identifying:
What skills and knowledge consumers need
Consumers need a range of generic, transferable skills in order to function
confidently, effectively and responsibly. These skills might include the ability to:
research, assimilate and critically analyse information according to individual needs, manage resources effectively, assess risk and exercise balanced judgment in making responsible decisions, communicate effectively in a wide range of consumer situations, solve problems where they arise, and know when to seek professional advice.
Where a lack of skills and knowledge is leading to detriment; and
How skills can be developed and knowledge improved to meet identified gaps.
2.5 Report of the Working Group
The report of the Working Group7 constituted by the Department of Consumer Affairs
in the first volume has also recognized the need for creation of awareness among
consumers about their rights in the entire country. Taking into account the prevailing socio-
economic scenario in the country and the infancy of the consumer movement, there is a
strong need to educate consumers about their rights and responsibilities. Creation of
awareness among consumers about their rights in the entire country needs to be given high
priority. People living in the remote and rural areas do often become victims of unlawful
7 Department of Consumer Affairs, Report of the Working Group on Consumer Protection, Vol I pp. 28-31, DCA, GoI, http://planningcommission.nic.in/aboutus/committee/wrkgrp11/wg11_consmr.pdf
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trade practices being adopted by wrongdoers due to lack of education and poor knowledge.
To give impetus to the consumers‘ right of education and awareness a national awareness
programme requires to be launched aggressively at the district and sub-district levels with
the help of State Government, Educational Institutions, Local VCOs, self-help groups, PRIs
and Urban Local Bodies (ULBs) with particular emphasis and focus on rural areas and most
vulnerable sections of consumers. Consumer awareness and education needs to be
pursued with appropriate plan/schemes and activities designed on the principle of PPP and
using the entire medium available for the purpose.
For Consumer education there is a need for a holistic policy and better re-sourcing of
activities geared towards consumer education. There are many opportunities for delivering
consumer education and lot of good work has already been done across the country. There
is a need to find out how all the present initiatives relate to each other. There is also a need
to look at best international practices. Consumer education is still a poorly understood
concept. A coordinated approach is needed to get the best from all involved. The main
stakeholders – government departments, industry, consumer groups, education and advice
providers, interest groups and community agencies – need to work together.
2.6 Socio-Economic Profile of the Respondents
As far as the success of the Consumer Protection Act is concerned, to a very large
extent it depends on the consumers‘ perception about its usefulness and utility in protecting
them.
Figure 2.1 Gender
75.9
66.2
75.071.2
79.273.6
24.1
33.8
25.028.8
20.826.4
Gujarat Karnataka Odisha Tripura U.P Total
Male Female
Source: Field Survey, Centre for Consumer Studies, IIPA
As everyone is a consumer it was important to take into consideration the views of
different socio-economic strata of the society. The sample size consisted of 73.6 percent
males and 26.4 percent females across different age groups from less than 20 to more than
Centre for Consumer Studies, IIPA
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50 years (Figure 2.1). This ratio was unequal as in the rural areas the traditional culture still
prevails and the women do not come forward to give their views easily.
As far as the age profile of the consumers is concerned nearly 35 percent of the
consumers are less than 30 years of age. 26.2 percent are between the age group of 30-40
years, 20.5 percent belong to the 40-50 years age category while 18.4 percent of the
consumer respondents are above 50 years. (Table 2.1).
Table 2.1 Age Group of the Consumers
Gender States Below 20 20-30 Years
30-40 Years
40-50 Years
Above 50 Years
Male
Gujarat 8.8 24.8 22.0 23.6 20.8
Karnataka 7.2 24.2 24.2 19.2 25.2
Odisha 5.0 17.7 28.0 24.0 25.3
Tripura 8.1 25.2 28.1 23.5 15.1
U.P 3.5 33.4 27.8 16.1 19.2
Total 6.5 25.2 26.0 21.2 21.1
Female
Gujarat 25.7 27.6 24.8 14.3 7.6
Karnataka 12.6 26.7 33.3 18.5 8.9
Odisha 7.0 18.0 21.0 35.0 19.0
Tripura 9.6 37.4 33.8 12.2 7.0
U.P 15.6 44.6 13.3 12.0 14.5
Total 13.9 30.3 26.4 18.4 11.0
G. Total
Gujarat 12.8 25.5 22.7 21.3 17.7
Karnataka 9.0 25.0 27.2 19.0 19.8
Odisha 5.5 17.8 26.1 26.8 23.8
Tripura 8.5 28.8 29.8 20.1 12.8
U.P 6.0 35.8 24.8 15.3 18.1
Total 8.4 26.5 26.2 20.5 18.4 Source: Field Survey, Centre for Consumer Studies, IIPA
The occupation of the respondents reveals that they belong to a variety of
occupation. 29.7 percent are associated with agriculture as the survey covered around 50
villages spread across ten districts of the five states selected for the study. 18.8 percent are
traders/manufacturers and also consist of small shopkeepers. 11.5 percent are teachers, 2.5
percent professionals consisting of doctors, engineers etc. 15.8 percent of the sampled
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respondents are students and 12.7 consist of housewives. The sample covers respondents
from various sections of the society. Apart from this the language and dialect also varied
from state to state and within the state as well (Table 2.2).
Table 2.2 Occupation of the Consumers
Occupation
States G. Total Gujarat Karnataka Odisha Tripura U.P
Agriculture 26.4 36.1 33.5 23.1 29.5 29.7
Traders/Manufacturers 23.8 16.1 18.9 25.9 9.3 18.8
Teachers 13.8 11.5 5.5 6.3 20.5 11.5
Professionals 3.9 2.8 0.3 2.3 2.6 2.5
Govt. Employees 8.7 3.5 4.0 8.3 8.0 6.5
Unemployed 0.9 1.5 2.3 6.0 1.8 2.5
Students 16.1 18.0 19.5 8.3 17.3 15.8
Housewives 6.4 10.5 16.0 19.8 11.0 12.7 Source: Field Survey, Centre for Consumer Studies, IIPA
As far as the education level of the respondents is concerned, 10.8 percent of them
had no schooling, 10.1 percent had studied
upto primary, 13.3 percent upto middle school
and 17.5 percent had studied upto high school.
14 percent had schooling upto intermediate,
20.1 percent were graduates and 11.2 percent
of the respondents were post graduates. As far
as the educational profile is concerned, it
ranges from no schooling to Ph.D level and
reflects the true nature of Indian society as far
as education and other social indicators are concerned (Table 2.3).
Table 2.3 Education Level of the Consumers
Education
States
Total Gujarat Karnataka Odisha Tripura U.P
No Schooling 6.4 9.0 18.8 15.3 8.8 10.8
Primary 7.1 8.2 15.0 17.5 4.8 10.1
Middle 18.6 6.8 14.6 17.5 11.0 13.3
High school 21.6 22.5 18.2 19.5 15.5 17.5
Intermediate 18.6 9.5 8.8 4.8 15.3 14.0
Graduation 20.6 25.5 15.5 13.3 25.3 20.1
Post Graduation 5.0 17.5 7.5 9.8 17.0 11.2
Ph.D 0.5 0.5 1.3 1.8 1.5 2.3
Others 1.6 0.5 0.3 0.5 0.8 0.7 Source: Field Survey, Centre for Consumer Studies, IIPA
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The income of the consumers indicates the purchasing power and also their buying
behaviour in the market. Due to globalisation and economic reforms the purchasing power of
the consumers has gone up
substantially and the market
is also flooded with a
variety of goods and
services to choose from.
The rise in disposable
income has given boost to
consumer culture. The
survey data reveals that
60.2 percent of the
consumers‘ income is less
than ` 50,000 while 14.8
percent of the respondents‘
income is between
` 50,000-1 lakh, 12.1 percent have income between ` 1-2 lakh, 10.2 percent belong to an
income slab of ` 2-5 lakhs, 2.3 percent are in the scale of ` 5-10 lakh and 0.4 percent of the
respondents have an income of more than ` 10 lakh. It needs to be clarified that the
respondents were hesitant to reveal their actual income. Respondents in the rural areas and
professionals gave a gauge assessment of their income level. There is no actual income of
those dependent on the agriculture and people in the rural areas tend to show lesser income
for fear of being out of various schemes (Table 2.4).
Table 2.4
Annual Income of the Consumers
Annual Income (in `) Gujarat Karnataka Odisha Tripura U.P Total
Below 50,000 49.0 63.0 76.1 69.0 44.8 60.2
50,000-1,00,000 13.8 13.4 9.3 16.2 21.3 14.8
1,00,000-2,00,000 14.2 10.8 9.0 9.5 16.5 12.1
2,00,000-5,00,000 20.0 9.0 5.3 4.8 11.1 10.2
5,00,000-10,00,000 2.5 3.3 0.3 0.5 5.0 2.3
Above 10,00,000 0.5 0.5 0.0 0.0 1.3 0.4 Source: Field Survey, Centre for Consumer Studies, IIPA
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2.7 Buying Behaviour of the Consumers
To understand the effectiveness of the Consumer Protection Act it is important to
understand the buying behaviour of the consumers. Majority of the respondents (31.8
percent) purchased their goods of daily use from the village shops, while 16.8 percent
purchased from the weekly market. The problem with these markets is that substandard and
spurious products are sold in large numbers. Similar is the case of the products sold by the
village shops.
Table 2.5 Place of Purchase of Daily Goods
State
Shopping Place
Village Shop
Weekly Market
Colony's Shop
Nearby Kasba/Town
City's Shop /Mall
Gujarat 38.3 15.1 10.3 15.6 20.7
Karnataka 26.4 18.8 4.0 19.0 31.8
Odisha 50.8 17.2 7.0 20.0 5.0
Tripura 24.4 16.3 2.0 41.2 16.1
U.P 18.2 17.0 9.3 39.0 16.5
Total 31.8 16.8 6.6 26.8 18.0 Source: Field Survey, Centre for Consumer Studies, IIPA
The quality and standard of these items is low as the purchasing power of the rural
consumer is also low. Most of the items of daily use are sold in loose and adulteration is very
easy and common. But as the shops are owned by the people from the same village
complaints are less and the shopkeeper normally changes the product if a complaint is
brought to his notice.
However, the demand and consciousness of the concept of quality still does not exist
in the rural areas due to both lack of awareness and non-availability of choice. 26.8 percent
of the respondents buy goods of daily use from the towns and nearly 18 percent shop from
the city. Generally, it has been observed that products of higher value are purchased from
the nearby town or the city keeping in view the choice in terms of range of products, price
and other terms and conditions (Table 2.5).
2.8 Inquiry into Various Aspects before Making Purchase
India is a large country with a young population and an emerging economic power.
The consumer base is one of the largest. With the opening of the economy, globalisation
and expansion of the information technology, the market has become one of the world‘s
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most sought after markets. The entry of multinational companies has changed the marketing
behaviour and pattern of Indian Consumers. The expansion of goods and services has
increased the choice of the consumers to a large extent. In such a scenario there is also a
need to better protect the consumers.
One of the major reasons for consumer exploitation is the lack of information that the
consumers have about the products and services in their hand before making a purchase.
Right to Information
has to be
operational at both
the ends. The
service provider or
the manufacturer or
the seller has to
give adequate
information to the
consumers for
better purchase but
it is also the duty of
the consumers to
seek information
about the product or the service that he intends to purchase or avail. The survey data
reveals that only 25.2 percent of the consumers always enquire about the terms and
condition of products/services before making a purchase. An empowered consumer is
expected to elicit adequate information about the product or service before making a
purchase. This will help them make a rational decision. The consumer is best placed in the
market when he/she has choices to select from. However, only 26.9 percent of the
respondents said that they always ask for the available choice but most of them do
sometimes (41.2 percent). The general reply is that they take whatever is given by the
shopkeeper. Consumers in the rural areas said that there is hardly any choice for the
consumers as only limited products are available. As far as the inquiry into other aspects of
the product are concerned, 31.8 percent of the respondents inquire about the contents of the
products and its other features. Most of the consumers (57.1 percent) are price conscious
and do inquire about the price of the product. Similar is the case with the expiry date as 50.8
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percent of the respondents say that they always check the expiry date of the product before
making a purchase (Table 2.6).
Table 2.6
Inquiry into Various Aspects before Making Purchase
Particulars Response States Total
Gujarat Karnataka Odisha Tripura U.P
Terms and Conditions of Products/Services
Always 28.0 27.8 19.2 17.0 33.8 25.2
Sometimes 43.8 42.8 32.8 49.5 32.4 40.3
Never 28.2 29.4 48.0 33.5 33.8 34.5
Available Choice
Always 32.8 32.5 21.3 16.0 31.4 26.9
Sometimes 40.8 44.0 31.4 53.8 35.8 41.2
Never 26.4 23.5 47.3 30.2 32.8 31.9
Contents
Always 29.2 38.2 19.2 18.0 54.5 31.8
Sometimes 39.4 33.8 29.0 50.2 22.2 35.0
Never 31.4 28.0 51.8 31.8 23.3 33.2
Price
Always 64.2 74.8 40.0 41.2 64.8 57.1
Sometimes 21.8 13.4 25.2 45.0 14.0 23.9
Never 14.0 11.8 34.8 13.8 21.2 19.0
Expiry Date
Always 62.6 63.3 37.0 34.0 56.3 50.8
Sometimes 20.6 14.4 24.5 41.0 17.4 23.6
Never 16.8 22.3 38.5 25.0 26.3 25.6 Source: Field Survey, Centre for Consumer Studies, IIPA
2.9 Insistence on Cash Memo/Bill while Purchasing Durables
In our marketing mechanism normally cash memos are not given by the sellers and
they do so only when specifically asked to give the cash memo/bill. Moreover, the
consumers are also not in a habit of asking for cash memo/bill. The consumers do not want
to pay taxes on the products of high value hence they prefer not to take the bill/cash memo.
The manufacturers/sellers also manipulate the accounts by not giving the cash memo. This
results in revenue loss for the government. It is also seen in the rural areas and in the
smaller shops in the urban areas where the shopkeepers do not give the cash memo even
when asked to do so. The survey data reveals that only 26 percent of the respondents insist
on the cash memo/bill while 41.9 percent ask sometimes and 32.1 percent of them opined
that they do not ask for a cash memo after making a purchase. It is also of importance that
for the consumers the cash memo relating to purchase is also a proof and when they file or
intend to file any complaint about the product/service they will need the receipt. Therefore,
there is a need to educate the consumers that after every purchase they should take a cash
memo or bill and it should also be made mandatory for the sellers to give the bill after every
purchase. An empowered consumer has to be demanding. The market will be better if the
Centre for Consumer Studies, IIPA
52
consumers demand better quality, choices and also more information. It is also in the
interest of the business that the consumer is better informed and more demanding (Table
2.7).
Table 2.7
Insistence on Cash Memo/Bill while Purchasing Durables
States
Insist on Cash Memo while Purchasing Durables
Always Sometimes Never
Gujarat 27.1 50.7 22.2
Karnataka 47.3 29.5 23.2
Odisha 12.5 37.3 50.2
Tripura 9.3 49.5 41.2
U.P 11.8 35.8 52.4
Total 26.0 41.9 32.1 Source: Field Survey, Centre for Consumer Studies, IIPA
2.10 Awareness about MRP
As per Packaged Commodity Rules it is mandatory to mention the Maximum Retail
Price (MRP) of the product on the packet of the product. The business is not expected to
charge more than the stipulated MRP mentioned on the packet. Neither can they put a
sticker on the MRP nor can they charge more than the MRP that is written. 70.6 percent of
the respondents were aware as to what is MRP and 48 percent of them knew that a
consumer can bargain on the MRP that is mentioned and the shopkeepers can also give at
a lesser amount than the MRP. Most consumers in the rural areas and many in the urban
areas complained that the shopkeepers sell at a higher price and refuse to sell the product
to the consumer when a protest is made. In fact 52 percent of the consumers are not aware
that they can bargain on the MRP and get a product for a less value than the MRP that is
mentioned (Table 2.8).
Table 2.8
Awareness about MRP and Bargaining on MRP
States Aware about MRP Aware about Bargaining on MRP
Yes No Yes No
Gujarat 81.0 19.0 62.2 37.8
Karnataka 83.8 16.2 46.2 53.8
Odisha 62.2 37.8 42.2 57.8
Tripura 57.0 43.0 30.0 70.0
U.P 68.2 31.8 58.2 41.8
Total 70.6 29.4 48.0 52.0 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
53
2.11 Awareness about Standard Marks and Labels
Standardisation of the product is the best way to protect the consumers. The
government has introduced a number of standard marks for the benefits of the consumers.
This helps particularly the rural or uninformed
consumer and assures quality of the product.
Over the years due to media publicity and also
rise in literacy the consumers have gained
knowledge about the standard marks and labels;
this is what the survey result indicates. As per
the survey data, 70.5 percent of the respondents
knew about ISI mark, 41.3 percent knew about
Agmark and 47.2 percent were aware of Hallmarking. Surprisingly only 16 percent of the
respondents were aware about FPO which relates to food items like, jam, sauce, jelly,
pickles etc. BEE is an important energy efficiency mark but only 9.6 percent of the
respondents were aware about it. Only 7.1 percent of them knew about Ecomark, 32 percent
were aware about ISO and 39.7 percent of the respondents were aware about the veg/non
veg symbols (Green and Red dot in square) on the label of the food products (Table 2.9).
Table 2.9
Awareness about Standard Marks and Labels
Marks Response States
Gujarat Karnataka Odisha Tripura U.P
ISI
Yes 82.6 78.5 72.2 53.2 65.0
No 17.4 21.5 27.8 46.8 35.0
Agmark
Yes 61.9 34.5 46.2 20.2 41.8
No 38.1 65.5 53.8 79.8 58.2
Hallmark
Yes 62.6 42.8 57.5 33.5 38.0
No 37.4 57.2 42.5 66.5 62.0
FPO
Yes 26.1 7.5 24.2 7.5 13.8
No 73.9 92.5 75.8 92.5 86.2
BEE
Yes 9.2 5.2 26.2 1.2 6.2
No 90.8 94.8 73.8 98.8 93.8
Ecomark
Yes 6.9 8.0 7.0 7.5 6.2
No 93.1 92.0 93.0 92.5 93.8
ISO
Yes 52.3 41.5 35.2 3.2 25.8
No 47.7 58.5 64.8 96.8 74.2
Veg/Non Veg Yes 56.9 49.5 44.0 10.0 36.5
No 43.1 50.5 56.0 90.0 63.5 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
54
Figure 2.2
Awareness about Standard Marks and Labels (Grand Total)
70.5
29.5
41.3
58.7
47.252.8
16
84
9.6
90.4
7.1
92.9
32
68
39.7
60.3
Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No
ISI Agmark Hallmark FPO BEE Ecomark ISO Veg/Non Veg
Source: Field Survey, Centre for Consumer Studies, IIPA
2.12 Consumers Experience Regarding Forms of Exploitation
The market mechanism is always in favour of the seller. Due to ignorance, lack of
awareness and a variety of reasons the consumers are exploited in one form or the other. It
was important to understand as to what kinds of exploitation the consumers have
experienced and the action taken by them. A variety of options were given to them. Of the
total respondents 55.4 percent had experienced food adulteration. This was mainly in the
rural areas where food items were found adulterated. Loose items like tea, chilli powder,
spices etc. were found to be adulterated. 47.4 percent of the respondents experienced short
weighing by the sellers.
Figure 2.3
Consumers‟ Experience regarding Forms of Exploitation
55.4
44.6 47.452.6 50.1 49.9
43.4
56.6
35.3
64.7
41.2
58.8
36.8
63.2
Yes No Yes No Yes No Yes No Yes No Yes No Yes No
Food
Adulteration
Short
Weighing
Overcharging Poor Quality Deficiency in
Services
Defects in
Goods
False
Information
Source: Field Survey, Centre for Consumer Studies, IIPA
The respondents said that it was a common practice and many shopkeepers did not
keep a correct calibrated balance. At places in the rural markets which the research team
visited stones are still being used for weighing instead of certified approved weights.
Overcharging is common, especially on items like packed water etc. 50.1 percent of the
Centre for Consumer Studies, IIPA
55
consumers opined that they were overcharged while 43.4 percent were victims of poor
quality. Only 35.3 percent of the respondents had problems with the service providers. As far
as goods are concerned 41.2 percent faced problems and 36.8 percent of them were victims
of false information given by the marketers.
Table 2.10
Consumers‟ Experience regarding Forms of Exploitation
Particulars Response
States
Gujarat Karnataka Odisha Tripura U.P
Food Adulteration Yes 45.2 50.0 39.2 68.2 75.0
No 54.8 50.0 60.8 31.8 25.0
Short Weighing Yes 44.2 46.0 23.5 59.8 63.8
No 55.8 54.0 76.5 40.2 36.2
Overcharging Yes 56.4 47.5 27.0 52.0 67.0
No 43.6 52.5 73.0 48.0 33.0
Poor Quality Yes 46.8 51.0 26.8 34.5 57.5
No 53.2 49.0 73.2 65.5 42.5
Deficiency in Services Yes 38.2 38.0 16.0 31.2 52.5
No 61.7 62.0 84.0 68.8 47.5
Defects in Goods Yes 43.8 42.5 23.3 36.8 59.5
No 56.2 57.5 76.8 63.2 40.5
False Information Yes 44.7 37.8 15.5 37.0 48.2
No 55.3 62.2 84.5 63.0 51.8 Source: Field Survey, Centre for Consumer Studies, IIPA
2.13 Action Taken Against Exploitation
Now the next logical question of importance was as to what the consumers did after
they were exploited by the marketers. 43.3 percent of the respondents said they ignored the
problem and took no action. 41.7 percent tried to get the refund or replace or return the
product.
Figure 2.4
Consumers Reaction against Exploitation (Grand Total)
43.3
56.7
41.7
58.3
17.3
82.7
4.0
96.0
8.8
91.2
Yes No Yes No Yes No Yes No Yes No
Ignore the Exploitation Tried to get the
price/return/ replace the
goods from the seller
Mobilised other
consumers &
pressurized the seller
Lodged a complaint at
the DCF
Made a complaint with
the internal redressal
machinery of
manufacturing
company
Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
56
17.3 percent mobilised other consumers and pressurised the seller to give relief. 8.8
percent of them made a complaint with the internal redressal machinery of the Government/
dealer/company. Of the total respondents only 4 percent said they approached the District
Consumer Forum and lodged a complaint.
Table 2.11 Consumers‟ Reaction against Exploitation
Particulars Response States
Gujarat Karnataka Odisha Tripura U.P
Ignored the Exploitation Yes 43.1 27.5 32.0 64.5 49.5
No 56.9 72.5 68.0 35.5 50.5
Tried to get the price/return/ replace the goods from the seller
Yes 47.0 45.5 25.8 41.8 47.8
No 53.0 54.5 74.2 58.2 52.2
Mobilised other consumers & pressurized the seller
Yes 27.5 16.2 10.2 13.2 18.5
No 72.5 83.8 89.8 86.8 81.5
Lodged a complaint at the DCF
Yes 7.4 6.0 2.5 1.0 3.0
No 92.6 94.0 97.5 99.0 97.0
Made a complaint with the internal redressal machinery of manufacturing company
Yes 19.0 9.2 3.5 0.2 11.2
No 81.0 90.8 96.5 99.8 88.8
Source: Field Survey, Centre for Consumer Studies, IIPA
2.14 Consumer Awareness regarding Consumer Protection Act, 1986
The success of the consumer movement depends on the extent of awareness about
the rights among the consumers. The consumers can take advantage of the Act only if they
are aware about its existence, its various provisions, the process of filing a complaint and
the redressal mechanism available to them.
Figure 2.5
Awareness about Consumer Protection Act,1986
19.325.5
55.2
15.5
30.3
54.2
3.0
13.8
83.2
6.8
24.6
68.6
6.2
18.8
75.0
10.2
22.6
67.2
Ver
y m
uch
Som
e ex
tent
Not
at a
ll
Ver
y m
uch
Som
e ex
tent
Not
at a
ll
Ver
y m
uch
Som
e ex
tent
Not
at a
ll
Ver
y m
uch
Som
e ex
tent
Not
at a
ll
Ver
y m
uch
Som
e ex
tent
Not
at a
ll
Ver
y m
uch
Som
e ex
tent
Not
at a
ll
Gujarat Karnataka Odisha Tripura U.P Total
Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
57
Inspite of twenty five years of the existence of the Consumer Protection Act only 10.2
percent of the respondents are aware of the Act to a large extent and 22.6 percent know
about the Act to some extent. 67.2 percent of the respondents did not know about the
existence of the Consumer Protection Act at all, which is a major social welfare legislation to
better protect the consumers (Figure 2.5).
Out of the respondents who knew about the Act to a large extent and to some extent
(32.8 percent), 28.9 percent said they know about the CP Act for the last three years, 26.7
percent know it for the last six years, 14.1 percent know about the Act for the last nine years,
13.1 percent know for the last twelve years and fifteen years respectively and 4.1 percent
know about it for more than fifteen years. This indicates that the awareness level has
increased during the last six years as 55.6 percent of the consumers know about the Act for
the last 6 years (Table 2.12).
Table 2.12 Knowledge about Consumer Protection Act
(Out of those who said know about CPA, 1986)
States
Years since Consumers Know about CPA,1986
Since Last 3 Years
Since Last 6 Years
Since Last 9 Years
Since Last 12 Years
Since Last 15 Years
More than 15 Years
Gujarat 36.8 25.4 17.1 6.7 12.4 1.6
Karnataka 31.2 30.4 11.2 9.6 11.2 6.4
Odisha 32.1 20.5 11.5 20.5 14.1 1.3
Tripura 14.3 39.0 5.2 22.1 14.2 5.2
U.P 21.8 21.9 19.0 16.1 14.6 6.6
Total 28.9 26.7 14.1 13.1 13.1 4.1 Source: Field Survey, Centre for Consumer Studies, IIPA
2.15 Level of Awareness among Consumers about Consumer Protection Act,
1986 (Socio – Economic Classification)
If the impact of the Act is high
then the awareness level of the
consumers about the Consumer
Protection Act also has to be higher.
However, an analysis of socio- economic
data suggests that the level of awareness
about the Consumer Protection Act is
Centre for Consumer Studies, IIPA
58
higher among males than females. 11.4 percent of the males are aware about the Act to a
large extent while only 8.9 percent of the females are aware to a large extent. As far as the
age group is concerned the impact has been higher on the older consumers (50 years and
above) where 11.1 percent are aware about the Act to a large extent and 27.9 percent are
aware to some extent. The data also reveals that the younger the consumer the lesser is the
awareness about the Consumer Protection Act. Only 9 percent of the respondents below 30
years of age are aware about the Act to a large extent while 20.8 percent are aware to some
extent. Nearly 3/4th (74.9 percent) of the rural masses are still ignorant about the existence
of the CP Act. (Table 2.13, Part I).
Table 2.13 (Part I)
Level of Awareness among Consumers about Consumer Protection Act, 1986 (Socio – Economic Classification)
Socio-economic Profile Particulars Aware about CPA, 1986
Large extent Some extent Not at all
Gender Male 11.4 25.1 63.5
Female 8.9 20.1 71.0
Age Group
Below 30 Years 9.0 20.8 70.2
30-40 Years 10.0 18.5 71.5
40-50 Years 10.8 23.0 66.2
Above 50 Years 11.1 27.9 61.0
Area
Rural 7.2 17.9 74.9
Semi Urban 9.1 20.5 70.4
Urban 14.2 29.5 56.3 Source: Field Survey, Centre for Consumer Studies, IIPA
As expected the level of awareness was higher in urban areas as compared to rural
areas. The Act has greater impact on the urban consumers as 14.2 percent of the urban
consumers are aware about the Consumer Protection Act to a large extent and 29.5 percent
to some extent while in the rural areas only 7.2 percent of the consumers are aware about
the CP Act to a large extent and nearly 17.9 percent are aware to some extent. (Table 2.13
Part I).
The analysis of the respondents education level data reveals that higher the
education level, greater the awareness about the Consumer Protection Act. Only 0.9 percent
of those who did not have any schooling were aware about the Act.
Centre for Consumer Studies, IIPA
59
Table 2.13 (Part II)
Level of Awareness among Consumers about Consumer Protection Act, 1986 (Socio – Economic Classification)
Socio-economic Profile
Particulars Aware About CP Act, 1986
Large extent Some extent Not at all
Education Level
No Schooling 0.9 3.8 95.3
Primary 2.9 12.5 84.6
Middle 5.2 19.6 75.2
High school 8.5 38.5 53.0
Intermediate 10.5 35.5 54.0
Graduation 18.3 28.6 53.1
Post-Graduation 20.4 30.8 48.8
Ph. D 25.4 33.8 40.8
Annual Income (`)
Below 50,000 4.2 14.2 81.6
50,000-1,00,000 7.3 20.2 72.5
1,00,000-2,00,000 9.1 22.1 68.8
2,00,000-5,00,000 10.6 25.4 64.0
5,00,000-10,00,000 13.5 28.3 58.2
Above 10,00,000 16.2 24.5 59.3 Source: Field Survey, Centre for Consumer Studies, IIPA
95.3 percent of such respondents were not aware about the Act. On the other hand
20.4 percent of the post graduates were aware about the Act to a large extent and 30.8
percent were aware to some extent. Similar is the case relating to the analysis of the data of
the income groups. Lower the level of income lower is the awareness about the Consumer
Protection Act. Nearly 13.5 percent of the respondents with annual income of ` 5- 10 lakhs
were aware about the Consumer Protection Act to a large extent while 28. 3 percent were
aware to some extent. On the other hand as high as 81.6 percent of the respondents with
income below ` 50,000 were not even aware about the Consumer Protection Act (Table 2.13
Part II).
Source of Information about CP Act
The next question was about the source of the information about the Consumer
Protection Act. Majority of them (71.5 percent) came to know about the Act through the
Media, 41.9 percent from family members, 13.2 percent from the lawyers and 29.0 percent
from VCOs. VCOs are associated with the School Consumers Clubs and they educate
children about the Act. Media remains the main source of information about the CP Act.
During discussions the consumers said that ―Jago Grahak Jago‖ Campaign is very good and
informative.
Centre for Consumer Studies, IIPA
60
Table 2.14 Source of Information about Consumer Protection Act
States Source of Information
Family Members /
Friends Media
Lawyer
VCOs
Others
Yes No Yes No Yes No Yes No Yes No
Gujarat 41.5 58.5 60.8 39.2 9.8 90.2 39.9 60.1 21.3 78.7
Karnataka 30.0 70.0 65.3 34.7 7.4 92.6 25.3 74.7 10.6 89.4
Odisha 27.2 72.8 82.5 17.5 8.7 91.3 7.8 92.2 4.9 95.1
Tripura 54.7 45.3 84.5 15.5 15.1 84.9 18.0 82.0 1.2 98.8
U.P 67.3 32.7 82.8 17.2 41.9 58.1 36.5 63.5 58.8 41.2
Total 41.9 58.1 71.5 28.5 13.2 86.8 29.0 71.0 18.4 81.6 Source: Field Survey, Centre for Consumer Studies, IIPA
2.16 Knowledge about Consumer Rights and Redressal Mechanism
It is interesting to note that out of the respondents who knew about the CP Act, only
19.4 percent could correctly enumerate the six rights under the CP Act. This further reveals
the level of awareness about the Consumer Protection Act, 1986 which has been in
existence for the last 25 years. The consumers had vague knowledge about the Act but
were not confident about their information. No doubt the awareness level has increased to
some extent but a lot more needs to be done (Figure 2.6).
Figure 2.6
Knowledge About Six Rights Given under Consumer Protection Act, 1986
(out of those who know about CPA, 1986)
24.6
75.4
22.2
77.8
14.3
85.7
17.9
82.1
2.5
97.5
19.4
80.6
Correct
Reply
Incorrect
Reply
Correct
Reply
Incorrect
Reply
Correct
Reply
Incorrect
Reply
Correct
Reply
Incorrect
Reply
Correct
Reply
Incorrect
Reply
Correct
Reply
Incorrect
Reply
Gujarat Karnataka Odisha Tripura U.P G.Total
Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
61
The consumers were asked whether they were well protected by laws in the country.
Only 26.1 percent of the respondents said that they were well protected. Nearly 60 percent
of the respondents could not give a definite answer and were unsure to the question whether
the consumers are well protected by laws in India (Figure 2.7).
Figure 2.7
Source: Field Survey, Centre for Consumer Studies, IIPA
As far as the implementation of the Consumer Protection Act is concerned only 21.4
percent of the respondents were of the view that the CP Act has been well implemented,
22.9 percent were of the opinion that it has not been implemented well and 55.7 percent
could not answer the question. Most of them said that if people are not aware about the Act
then how can it be well implemented (Figure 2.8).
Figure 2.8
Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
62
Even to the question whether the CP Act favours the consumers, majority of the
respondents could not reply as they were not aware about the CP Act. In fact the research
team organised a number of search conferences to educate the respondents but even then
they could not gauge as to whom it favoured (Figure 2.9).
Figure 2.9
Does Consumer Protection Act Favours only Consumers ?
12.620.6
66.8
19.4 15.8
64.8
15.210.0
74.8
18.0
9.8
72.2
19.8
9.4
70.8
18.4 21.2
60.4
Yes No
Can
't sa
y
Yes No
Can
't sa
y
Yes No
Can
't sa
y
Yes No
Can
't sa
y
Yes No
Can
't sa
y
Yes No
Can
't sa
y
Gujarat Karnataka Odisha Tripura U.P G.Total
Source: Field Survey, Centre for Consumer Studies, IIPA
Every district has a District Forum where the consumers can file a complaint, but
there is not much publicity about
the existence of such redressal
mechanism at the district level
hence consumers do not know
about the District Forum. Only
18.9 percent of the total
respondents who knew about the
CP Act were aware about the
District Consumer Forum, 33.1
percent to some extent and 48.0
percent of them were not at all
aware about the existence of
such a mechanism at the district level. The fact that even after 25 years of the existence of
the CP Act the beneficiaries of the Act are unaware about the existence of the redressal
mechanism under the Act speaks volume about the tardy implementation of the Act. The Act
can only be effective if the consumers are aware about it and make use of the Act not only to
redress their grievances but also to act as smart educated consumers (Figure 2.10).
Centre for Consumer Studies, IIPA
63
Figure 2.10
Source: Field Survey, Centre for Consumer Studies, IIPA
The CP Act provides as to who is a ―Consumer‖ and ―who can file a complaint‖.
Given a set of options 84.9 percent of the respondents who knew about the CP Act said that
a complaint can be filed by a consumer, 51.7 said that the complaint can be filed by a VCO,
31.3 percent opined that the government can file a complaint, 30.8 percent of the
respondents were of the view that one or more consumers can file a complaint while 33.5
percent said that all the above categories can file a complaint. The respondents were of the
view that the Government should come forward and file complaint on behalf of the
consumers (Table 2.15).
Table 2.15 Who can File a Complaint in District Consumer Forum
(Out of those who knew about CP Act, 1986)
Source: Field Survey, Centre for Consumer Studies, IIPA
2.17 Filing of Complaint in the District Forum
The respondents were asked as to whether they had ever filed a complaint in the
District Forum. 96 percent said that they had not while a very small section i.e. 4 percent
opined that they had filed a complaint in the District Forum (Figure 2.11).
States Consumer VCOs Government One or More Consumers
All of them
Yes No Yes No Yes No Yes No Yes No
Gujarat 88.9 11.1 59.1 40.9 47.8 52.2 51.6 48.4 52.2 47.8
Karnataka 83.6 16.4 41.7 58.3 22.6 77.4 23.5 76.5 29.6 70.4
Odisha 83.9 16.1 29.7 70.3 16.1 83.9 12.7 87.3 16.0 84.0
Tripura 83.5 16.5 26.5 73.5 4.9 95.1 4.9 95.1 2.9 97.1
U.P 81.4 18.6 86.6 13.4 62.1 37.9 49.1 50.9 58.3 41.7
G.Total 84.9 15.1 51.7 48.3 31.3 68.7 30.8 69.2 33.5 66.5
Centre for Consumer Studies, IIPA
64
Figure 2.11
Ever Filed a Complaint in the District Forum
6.4
93.6
7.2
92.8
0.7
99.3
1.9
98.1
2.9
97.1
4.0
96.0
Yes No Yes No Yes No Yes No Yes No Yes No
Gujarat Karnataka Odisha Tripura U.P G.Total
Source: Field Survey, Centre for Consumer Studies, IIPA
The next question of enquiry was as to the procedure they adopted to file a
complaint in the District Forum. Among the respondents who had filed a complaint in the
District Forums. 70.7 percent of the complainants said that they filed the complaint through a
lawyer, while 26.6 percent of the complaints were filed by the consumers themselves. The
Act provides that a VCO can file a complaint but just 2.7 percent of the complaints were filed
by the VCOs, mainly in the states of Gujarat (8.3 percent) and Karnataka (5.0 percent). Due
to the involvement of the lawyers the procedures have become technical and it has also
resulted in prolonging the cases on one pretext or other. The procedure is no more simple
and inexpensive. This defeats the very objective of the Act which aims at providing quick
and inexpensive justice to the consumers (Table 2.16).
Table 2.16
Procedure Adopted to File Complaint in the District Forum (Out of those who filed complaint in DCF)
States Response
Self Through VCO Through Lawyers
Gujarat 20.8 8.3 70.9
Karnataka 30.0 5.0 65.0
Odisha 25.0 0.0 75.0
Tripura 35.0 0.0 65.0
U.P 22.2 0.0 77.8
G. Total 26.6 2.7 70.7 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
65
Reasons for not Filing a Complaint
Figure 2.12
Source: Field Survey, Centre for Consumer Studies, IIPA
It was a matter of enquiry as to why many of the respondents did not file a complaint
in the District Forum inspite of many having been exploited in the market. 32.4 percent of the
respondents said they did not know about the Consumer Protection Act and so did not file a
complaint. However, 33.3 percent of them did not file a complaint because they felt the
procedure was lengthy and resulted in delay. 8.0 percent felt that the District Forum was
distantly located and therefore, access to justice was a problem. In states like UP and
Odisha some of the Districts are very big in geographical size and as the District Forums are
located at the District Headquarters; hence it becomes difficult for the consumer to file a
complaint due to time and monetary consideration (Table 2.17).
Table 2.17
Reason for not Filing Complaint in District Forum (Out of those who did not file complaint in DCF)
States Reasons No
Knowledge about Law
Due to Time
Constraint
Delay Lengthy
Procedure
Filing Complaint
is Expensive
District Forum
Distantly Located
Did not face
Problem
Any others
Gujarat 27.3 5.3 22.7 1.8 12.8 29.6 0.5
Karnataka 36.0 6.2 38.0 0.2 6.8 8.8 4.0
Odisha 38.8 3.2 35.5 1.3 6.2 11.5 3.5
Tripura 31.9 3.5 27.7 5.7 5.5 24.9 0.8
U.P 28.5 8.2 43.8 0.0 8.3 11.2 0.0
G. Total 32.4 5.3 33.3 1.8 8.0 17.5 1.7 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
66
2.18 Implementation of Orders of District Forum
The consumers who have approached the District Forum are largely satisfied with
the implementation of the orders of the District Forum (77.6 percent). 65.9 percent felt that
the forums are consumer friendly. 11.5 percent of the respondents have approached VCOs
for help; however, this does not necessarily mean it was done to file a complaint.
Table 2.18 Implementation of Orders of District Forums
States
Is Implementation of Order of District Consumer Forum
Effective
Is District Consumer Forum Consumer
Friendly
Have taken Help from
VCOs
Yes No Can't say Yes No Can't say Yes No
Gujarat 83.8 10.0 6.2 71.1 9.6 19.3 26.4 73.6
Karnataka 71.5 12.3 16.2 68.8 13.2 18 15 85
Odisha 89.5 5.3 5.2 62.5 17.5 20 2.2 97.8
Tripura 75.0 15.8 9.2 66.8 16.8 16.4 3.8 96.2
U.P 69.2 12.6 18.2 60 17.5 22.5 9.0 91.0
G. Total 77.6 11.2 11.2 65.9 14.8 19.3 11.5 88.5 Source: Field Survey, Centre for Consumer Studies, IIPA
2.19 Prefer Settlement through Mediation
The delay in disposal of cases is one of the reasons why consumers do not approach
the redressal mechanism under the CP Act. The respondents were asked whether they
would prefer that their complaints are resolved through mediation rather than approaching
the Consumer Forums/Commissions. Nearly 60 percent of the respondents said that they
would prefer the settlement of their disputes through mediation which should lead to early
settlement and resolution of their problem (Figure 2.13).
Figure 2.13
Source: Field Survey, Centre for Consumer Studies, IIPA
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2.20 District Consumer Protection Council
The Consumer Protection Act provides for a three tier policy mechanism at the
District, State and Central level. In most of the states the District Protection Councils have
not been constituted and even where they have been constituted they are dormant bodies
without any functions to perform. In fact the District Collector who heads these Councils has
no time to convene the meetings. As such the consumers are not even aware that the
District Consumer Protection Council even exists. 87.2 percent of the respondents were
neither aware about the existence of the Consumer Protection Council at the District level
nor have they heard about any activity being organised by these councils (Figure 2.14).
Figure 2.14
Source: Field Survey, Centre for Consumer Studies, IIPA
2.21 Threat of CP Act and Response of Shopkeepers/Traders
The consumers were asked as to whether they have ever threatened the
shopkeepers/ traders to file a complaint in the District Forums for redressal of their
grievances. Only 16.4 percent said that they had done so but the results were short lived.
29.2 percent of the respondents were of the view that the trader had stopped unfair practice
while 41.6 percent of them said that they continued the same practice after sometime. The
Consumer Protection Act was not a deterrent against unfair trade practice. It is also
interesting to note that 29.2 percent of the respondents felt that the traders did not bother
about the threat of Consumer Protection Act (Table 2.19).
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Table 2.19 Threat of CP Act and Response of Shopkeepers/Traders
States Threatened Shopkeepers/
Traders to File Complaint in District Forum
Response of Shopkeepers/Traders
Yes No Stopped the unfair trade
practice
Initially stopped but later
continued to do so
Did not bother
Gujarat 26.6 73.4 25.8 62.1 12.1
Karnataka 8.5 91.5 50 35.3 14.7
Odisha 7.2 92.8 31 37.9 31.1
Tripura 15.2 84.8 16.4 42.6 41.0
U.P 23.5 76.5 29.8 22.3 47.9
G.Total 16.4 83.6 29.2 41.6 29.2 Source: Field Survey, Centre for Consumer Studies, IIPA
2.22 Consumers‟ Perception about Success of Consumer Protection
Movement
Even though the Consumer Protection Act of 1986 gave a boost to the consumer
movement in the
country yet the
spread of the
movement has
remained tardy. It
has remained
confined to select
urban pockets of
the country. A host
of reasons were
given and the
respondents were
asked to identify
the reasons as to
why the consumer movement has not been very successful in the country. 75.4 percent of
the respondents identified lack of education and awareness about their rights as the major
reason for the failure of the consumer movement.
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Table 2.20 Why Consumer Protection Movement is Not Successful
Reason
Re
sp
on
se States
G. T
ota
l
Gujarat Karnataka Odisha Tripura U.P
People Lack Education about their Rights
Yes 69.5 83.2 75.5 81.0 68.5 75.4
No 30.5 16.8 24.5 19.0 31.5 24.6
Consumer's Casual Attitude
Yes 56.0 56.2 42.0 53.5 49.0 51.4
No 44.0 43.8 58.0 46.5 51.0 48.6
Ineffective Redressal Mechanism
Yes 66.7 56.7 69.8 73.0 74.2 68.1
No 33.3 43.3 30.2 27.0 25.8 31.9
Insufficient Efforts of Government
Yes 64.9 47.8 64.0 73.0 61.5 62.3
No 35.1 52.2 36.0 27.0 38.5 37.7
Traders/Business more Powerful
Yes 53.2 57.2 74.0 54.8 71.8 62.0
No 46.8 42.8 26.0 45.2 28.2 38.0
No body wants to Take Initiatives
Yes 60.6 55.8 66.2 53.0 52.0 57.6
No 39.4 44.2 33.8 47.0 48.0 42.4 Source: Field Survey, Centre for Consumer Studies, IIPA
51.4 percent of the respondents said that the consumers have a casual attitude
towards their problems. 68.1 percent opined that ineffective redressal mechanism is one of
the major reasons for the failure of the consumer movement in the country. 62.3 percent
blamed the insufficient efforts of the government particularly the state government. 62.0
percent felt that the traders/business was more powerful in comparison to the consumer
movement. 57.6 percent of the respondents were of the view that people are silent sufferers
as nobody wants to take initiative in this direction (Table 2.20).
2.23 Need for Consumer Education Programmes
In fact an analysis of the impediments to the consumer movement suggests that lack
of education and awareness about consumer rights is the major one. If the consumer is
empowered his/her attitude will change. Similarly if the redressal of consumers‘ grievances
could be done in a simple, easy and quick manner the movement will pick up. Here the
government particularly the state governments and VCOs can play an important role in
educating the consumers and creating awareness and in the process strengthening the
consumer movement.
There is no doubt that consumer empowerment is the first step towards
strengthening the consumer movement in the country. 88.0 percent of the respondents were
of the opinion that there is a need for consumer awareness programmes (Figure 2.15).
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Figure 2.15
Source: Field Survey, Centre for Consumer Studies, IIPA
The next question of enquiry was as to which agency should be involved in the task
of consumer education and awareness. The respondents were asked to rank the agencies in
order of preference. The respondents ranked government as first preference,
schools/colleges as second preference, gram panchayats as third preference, electronic and
print media as the fourth preference and VCOs as the last preferred agency to be involved in
consumer awareness programmes. In fact some of the respondents were complaining about
the role of VCOs in the consumer movement but it is equally true that VCOs have played an
important role in the expansion of consumer movement (Table 2.21).
Table 2.21
Agencies to be Involved in Consumer Awareness Programme
Agencies States G. Total
Gujarat Karnataka Odisha Tripura U.P
%
Ran
k
%
Ran
k
%
Ran
k
%
Ran
k
%
Ran
k
%
Ran
k
Government 41.7 2 68.0 1 49.8 1 57.8 1 39.5 3 51.2 1
NGOs/VCOs 39.4 3 41.8 4 16.5 5 29.5 3 28.7 5 31.4 5
Schools/Colleges 47.5 1 50.0 2 36.0 2 21.5 4 64.7 1 43.4 2
Electronic & Print Media 28.0 5 47.3 3 26.8 4 11.5 5 64.5 2 34.0 4
Gram Panchayat 35.6 4 32.3 5 34.3 3 34.9 2 34.9 4 34.4 3 Source: Field Survey, Centre for Consumer Studies, IIPA
As regards the best medium to spread education and awareness among the
consumers, the respondents preferred the electronic and print media to spread consumer
awareness. This they said was more accessible, focused and has wider reach; it has
reached the homes of the consumers. Celebration of important days like National Consumer
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Day and World Consumer Rights Day was also preferred as a mechanism to spread
consumer awareness. NGOs/VCOs were ranked as third preference as a medium to spread
consumer awareness. Art and street play was the last preferred medium to spread
consumer awareness as it had a limited audience and was not a convenient mode (Table
2.22).
Table 2.22 Best Medium to Spread Consumer Awareness
Medium
States G.Total
Gujarat Karnataka Odisha Tripura U.P
% R
an
k
%
Ran
k
%
Ran
k
%
Ran
k
%
Ran
k
%
Ran
k
Electronic /Print Media 45.2 2 75.5 1 54.8 1 40.8 2 36.3 2 50.2 1
NGOs/VCOs 29.1 3 27.5 2 21.3 4 61.3 1 18.5 4 31.5 3
Art/Street Play 15.6 4 18.8 4 43.5 2 30.0 3 35.3 3 28.4 4
Celebration of important days 47.0 1 21.0 3 22.0 3 21.0 4 55.5 1 33.5 2 Source: Field Survey, Centre for Consumer Studies, IIPA
2.24 Jago Grahak Jago Campaign
―Jago Grahak Jago
Campaign‖ is perhaps one of the
most successful media campaigns
launched to educate the consumers
on various issues relating to the
consumers. During the survey across
states and geographical locations
this slogan could be heard. 80.2
percent of the respondents had either
heard or seen this campaign (Figure
2.16). An area wise analysis
indicates that the penetration of the
campaign has been both in the urban
and rural areas. 88 percent of the respondents from the urban areas and 74.6 percent from
the rural areas have either seen or heard about Jago Grahak Jago campaign. Among those
who has seen or heard about Jago Grahak Jago the awareness level has gone up (Figure
2.17 & 2.18).
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Figure 2.16
Figure 2.17 Figure 2.18
Awareness about CPA, 1986 among those who have
Seen/Heard 'Jago Grahak Jago' Advertisement
16.0
44.6 39.4
3.117.9
79.0
Large
Extent
Some
extent
Not at all Large
Extent
Some
extent
Not at all
Seen/Heard 'Jago Grahak Jago' Not Seen/Heard 'Jago Grahak
Jago'
Source: Field Survey, Centre for Consumer Studies, IIPA
The sources of the campaign are many but 90.3 percent of the respondents said that
they came to know about the
campaign through Television and
67.2 percent had heard it on the
Radio. Newspapers and
magazines are the other major
source of information as opined by
65.3 percent of the respondents.
17.7 percent came to know about
the campaign through the VCOs.
As far as the campaign being informative, this was confirmed by 86.6 percent of the
respondents. During the survey the consumers were of the view that the campaign should
also be launched in the local language as well so that it can be more effective and reach a
larger audience (Table 2.23 & Figure 2.19).
Area wise Penetration of 'Jago Grahak Jago'
74.6
25.4
78.1
21.9
88.0
12.0
80.2
19.8
Yes No Yes No Yes No Yes No
Rural Semi Urban Urban Total
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Table 2.23 Source of „JAGO GRAHAK JAGO‟ Campaign
States Source
Television Radio Newspaper/ Magazine /Hoarding
VCOs Others
Yes No Yes No Yes No Yes No Yes No
Gujarat 90.7 9.3 53.1 46.9 46.9 53.1 41.1 58.9 9.8 90.2
Karnataka 83.6 16.4 71.5 28.5 69.2 30.8 11.2 88.8 5.5 94.5
Odisha 85.3 14.7 79.3 20.7 85.3 14.7 2.4 97.6 2.4 97.6
Tripura 95.4 4.6 90.8 9.2 83.9 16.1 7.8 92.2 1.2 98.8
U.P 97.8 2.2 12.3 87.7 9.6 90.4 50.8 49.2 38.3 61.7
G.Total 90.3 9.7 67.2 32.8 65.3 34.7 17.7 82.3 5.9 94.1 Source: Field Survey, Centre for Consumer Studies, IIPA
Figure 2.19
Source: Field Survey, Centre for Consumer Studies, IIPA
2.25 Awareness about National Consumer Day/World Consumer Rights Day
To create awareness about Consumer Rights it is important to educate the
consumers about the two important days associated with the consumer movement. 24th
December is celebrated as the National Consumer Day which marks the enactment of the
Consumer Protection Act in 1986 and the World Consumer Rights Day on March 15. These
two days are important as far as consumer movement is concerned. These two days are
celebrated throughout the country but in a very low profile and limited ways. As a result the
awareness regarding these two important days was minimal. 87.2 percent of the
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respondents are not aware about the National Consumer Day and 87.5 percent are not
aware about the World Consumer Rights Day (Table 2.24).
Table 2.24 Know about Consumer Days
States National Consumer Day World Consumer Right day
Yes No Yes No
Gujarat 17.4 82.6 22.9 77.1
Karnataka 12.2 87.8 10.2 89.8
Odisha 7.0 93.0 5.0 95.0
Tripura 12.5 87.5 11.5 88.5
U.P 14.5 85.5 11.8 88.2
G.Total 12.8 87.2 12.5 87.5 Source: Field Survey, Centre for Consumer Studies, IIPA
Moreover, of the respondents who were aware about the two Consumer Days only
41.8 percent of them could mention the correct dates. On the other hand 48.8 percent of the
respondents mentioned both the dates incorrectly (Table 2.25). This again shows that there
is a need for a vigorous and sustained awareness campaign.
Table 2.25 Knowledge about Dates of Consumer Days
(Out of those who know the day)
States Response
Mentioned one correct date
Mentioned both Correct dates
Mentioned both Incorrect dates
Gujarat 7.9 56.6 35.5
Karnataka 4.1 65.3 30.6
Odisha 8.7 39.1 52.2
Tripura 10.0 30.0 60.0
U.P 15.5 13.8 70.7
G.Total 9.4 41.8 48.8 Source: Field Survey, Centre for Consumer Studies, IIPA
2.26 Awareness about National Consumer Helpline and CORE Centre
The Department of Consumer Affairs has set up NCH in collaboration with the
University of Delhi and also a CORE Centre in association with Consumer Coordination
Council (CCC) to provide information, advice and redress to the consumers. But again the
consumers are unaware about these helplines and therefore, are unable to take benefit. The
problem also relates to the language as these helplines take complaints only in English and
Hindi language and therefore, regional language consumers do not access these services.
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Figure 2.20 Figure 2.21
Source: Field Survey, Centre for Consumer Studies, IIPA
The survey data reveals that 92.3 percent of the respondents were not even aware
about the National Consumer Helpline. Only a small segment of respondents (7.7 percent)
was aware about the NCH and CORE. (Figure 2.20) The data also suggests that only 6.4
percent of the respondents out of the 7.7 percent who were aware about the NCH/CORE
Centre approached these for help (Figure 2.21).
Therefore, as far as the analysis of the survey data relating to the cross section of
the consumers of the ten sampled districts in the five states is concerned, there is lack of
consumer education and awareness. Large numbers of consumers are not even aware
about the existence of the Consumer Protection Act. They do not approach the District
Forums for redressal of grievances as they feel that it results in delay and lengthy
procedures.
The survey results show that right to consumer education is still a distant dream as
majority of the consumers are unaware about the Consumer Protection Act and its various
provisions and instruments. Empowering consumers must be a priority for any Government.
Keeping in view the heterogeneity of population, a single strategy will not be successful. It
needs a multi dimensional approach.
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CHAPTER III
WORKING OF CONSUMER REDRESSAL MECHANISM (Perception of the Members of the Consumer Redressal Mechanism)
3.1 Introduction
The Consumer Protection Act, 1986 provides for a three tier redressal mechanism
and the District Forum is the first point of contact for the consumers. District Forums have
been constituted in each
district. In case of large
number of complaints and
pendency going beyond
certain limit more than one
District Forum can be
constituted. The District
Forum is headed by the
President who is a District
Judge or a retired District
Judge or a person qualified to
be a District Judge. In states like Madhya Pradesh and Chattisgarh serving District Judges
head the District Forums, while Uttar Pradesh, Bihar, Jharkhand have retired District Judges
and in many states there is a mix of both retired District Judges and members from the Bar.
There are two other members out of which one is a lady member and the members are
usually from non-judicial background with varied qualifications. There is a selection
committee headed by the President of the State Commission and consisting of two other
members i.e. Secretary, Consumer Affairs and Secretary, Law from the respective States to
select them. As per CP Act the term ‗member‘ includes both the President and other
members.
The tenure of the appointment is for five years or upto the age of 65 years. The
members can be reappointed for another term of five year. The District Forums are required
to dispose of the complaints within a period of three months and where testing is required
within a period of five months. The Act provides as to who is a consumer and who can file a
complaint in the District Forum. The pecuniary jurisdiction of District Forums is upto ` 20
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lakhs. There are a variety of reliefs that the District Forum can award to the consumer and
also compensate for the loss, mental agony etc.
At present there are 634 District Forums in the country but only 601 are functional as
per data of the NCDRC1. Vacancy in the District Forums is the major reason for non-
functional forums. According the data of the NCDRC, 4 posts of Presidents and 16 of
Members in the State Commissions and 69 Presidents and 252 Members in the District
Forums are vacant. The infrastructure and other requisites are largely met from the funds of
the Central Government. The state government provides land for construction of the District
Forums. The supervisory power rests with the State Commission headed by the President,
who is a retired judge of the High Court. The aggrieved party can file an appeal to the State
Commission.
Table 3.1
Functional Status of State Commissions and District Forums
(as on 18.09.2012)
Forums Total Functional Non functional
State Commissions 35 35 0
District Forums 634 601 33 Source: National Consumer Disputes Redressal Commission
Table 3.2 Vacant Positions in State Commissions and District Forums
( as on 18.09.2012)
Forums Position
President Member
State Commissions 4 16
District Forums 69 252 Source: National Consumer Disputes Redressal Commission
In the consumer redressal mechanism the fulcrum is the District Forums. The
Consumer Protection Act provides for speedy and inexpensive justice delivery system. But
of late the District Forums are not able to meet the expectations of the consumers who file a
complaint. The delay in disposal of the complaints, large pendency and the small amounts of
compensation awarded are the major reasons why the consumers are hesitant to file
complaints in the District Forum. Moreover, the problem also relates to the involvement of
the lawyers in the District Forums which makes the justice delivery system lengthy, technical
and expensive.
1 ncdrc.nic.in
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Even though the study was confined to ten districts but as far as the District Forums
were concerned it covered 112 District Forums from the five states. Data has been collected
using a structured questionnaire. The purpose for larger sample size was to enlarge the
scope of enquiry and also give a holistic picture. The total number of District Forums under
study constituted almost one sixth of the District Forums in the country. The total
respondents included 112 Presidents and 193 Members of the District Forums. The sample
size consists of 305 members, out of which 118 are women members. The District Forums
are supposed to follow the Principles of Natural Justice and summary procedure. The
Consumer Protection Regulations stipulate that these forums should not have the
semblance of a court and prohibit the use of CPC, CrPC and Evidence Act. This chapter is
divided into four sections. Section I deals with the perception of Members of the Consumer
Forums and Section II deals with the infrastructural and other aspects relating to the
Functioning of the Forums. Section III is devoted to the working of the State Commissions
and Section IV deals with the functioning of National Commission.
Table 3.3
Number of District Forums and Members covered under the Study
States Consumer District Forums No. of Members interviewed
Total No. of
Forums
No. of DCDRFs covered under
Study
% of DCDRFs Covered under Study
Presidents Members
Gujarat 27 13 48.1 13 21
Karnataka 30 29 96.7 29 43
Odisha 31 14 45.2 14 27
Tripura 4 3 75.0 3 6
U.P 70 53 75.7 53 96
Total 162 112 69.1 112 193
Section I : View of Presidents and Members of District Forums
3.2 General Profile of the Respondents
In order to understand the functioning of the District Forums it is important to know
the socio-economic profile of the Presidents and the Members of the District Forums. As far
as the age profile of the members is concerned 17.2 percent are in the age group of 35-40
years, 24.4 percent between 40-45 years, 18.8 percent between 45-50 years of age, 13.0
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percent between 50-55 years of age, 9.4 percent between the age group of 55-60 years and
above 60 years consists of 17.2 percent of the respondents.
Table 3.4 Age Group of the Members
States
Age Group 35-40 Years
40-45 Years
45-50 Years
50-55 Years
55-60 Years
Above 60 Years
Gujarat 21.1 21.1 5.3 26.2 5.2 21.1
Karnataka 7 27.9 20.9 16.3 7 20.9
Odisha 25.9 25.9 22.2 3.8 7.4 14.8
Tripura 0 0 16.7 0 0 83.3
U.P 19.6 24.7 19.6 12.4 12.4 11.3
G. Total 17.2 24.4 18.8 13.0 9.4 17.2 Source: Field Survey, Centre for Consumer Studies, IIPA
Note: Analysis of Members‘ response only
The data indicates that 60.6 percent of the Members of the sampled District Forums
are between the age group of 35 – 50 years, which is relatively a young group (Table 3.4).
The Presidents have a long experience of judicial work. As far as the age profile of the
Presidents is concerned most of them are above 60 years of age (88.3 percent) because
mostly are retired District Judges and few are from the Bar. (Table 3.5)
Table 3.5 Age Group of the Presidents
States Age Group
35-40 Years
45-50 Years
50-55 Years
55-60 Years
Above 60 Years
Gujarat 0.0 0.0 0.0 0.0 100.0
Karnataka 0.0 10.3 0.0 0.0 89.7
Odisha 7.1 28.6 14.3 0.0 50.0
Tripura 0.0 0.0 33.3 66.7 0.0
U.P 0.0 0.0 0.0 0.0 100.0
G. Total 0.9 6.3 2.7 1.8 88.3 Source: Field Survey, Centre for Consumer Studies, IIPA
The educational status of the members is an indicator of their knowledge and skill.
As far as the Presidents are concerned they have a law degree as they are either from the
judiciary or from the Bar. But Members come from various backgrounds. The Act stipulates
graduation as the minimum qualification for the Members of the District Forums. As per the
data 24.0 percent of Members are graduates, 38 percent are graduates with law degree,
23.4 percent are post graduates and 14.1 percent are post graduates with law degree. 52.1
percent of the members of the sampled District Forums have a law degree (Table 3.6).
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Table 3.6 Educational Status of the Members
States Education Level
Graduate Graduate with Law Degree
Post Graduate
Post Graduate with Law Degree
Ph.D
Gujarat 15.8 57.9 5.2 21.1 0.0
Karnataka 18.6 58.1 7.0 16.3 0.0
Odisha 18.5 48.2 11.1 22.2 0.0
Tripura 33.3 0.0 66.7 0.0 0.0
U.P 28.9 24.7 35.1 10.3 1.0
G. Total 24.0 38.0 23.4 14.1 0.5 Source: Field Survey, Centre for Consumer Studies, IIPA
Note: Analysis of Members‘ response only
Before being selected as Members, the respondents were associated with various
occupations. As far as the previous occupation
of the Members is concerned, 44.3 percent of
the respondents were lawyers, 12.0 percent
were from education sector, 11.5 percent were
government employees. A large number (14.2
percent) of the lady Members were housewives
before becoming a Member of the District
Forum. 7.1 percent come from the
NGOs/VCOs, 3.3 percent from the business.
The previous occupation of the Presidents of the Forum has not been taken into account as
either they were from the judicial background or legal profession i.e. lawyers (Table 3.7).
Table 3.7 Previous Occupation of the Members
Occupation States G. Total
Gujarat Karnataka Odisha Tripura U.P
Agriculturists 5.3 0.0 0.0 0.0 4.5 2.7
Business 0.0 2.3 3.7 16.7 3.4 3.3
Education 5.3 0.0 0.0 66.7 19.3 12.0
NGOs/VCOs 15.8 7.0 14.8 0.0 3.4 7.1
Professionals 10.5 2.3 0.0 0.0 2.4 2.7
Govt. Employee 0.0 11.6 22.2 16.6 10.2 11.5
Lawyers 57.8 62.8 59.3 0.0 30.7 44.3
Housewives 0.0 9.3 0.0 0.0 25.0 14.2
Others 5.3 4.7 0.0 0.0 1.1 2.2 Source: Field Survey, Centre for Consumer Studies, IIPA Note: Analysis of Members‘ response
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Table 3.8 Nature of Previous Employment of the Members
States Nature of Employment
Government Private Self-Employment
Gujarat 15.8 26.3 57.9
Karnataka 16.3 30.2 53.5
Odisha 22.2 37.1 40.7
Tripura 83.3 0.0 16.7
U.P 9.3 46.4 44.3
Total 15.6 38.0 46.4 Source: Field Survey, Centre for Consumer Studies, IIPA
Note: Analysis of Members‘ Response
The survey data reveals that 46.4 percent of the members before joining the District
Forums were self-employed. 38 percent were from the private sector and 15.6 percent were
in Government service (Table 3.8).
3.3 Problems in Handling Complaints without Law Degree
There is a general perception that the members should have law degree so that they
are able to understand the procedures better and are able to dispose of the complaints
keeping in view the nature of the work as it involves legal jargons. However, 69.8 percent of
the members who do not have a law degree said that they did not find it difficult to discharge
their functions without law degree. During discussions the members revealed that one needs
a good understanding of issues and the Consumer Protection Act and there is no need to
make the proceedings like a court as this will discourage the consumers from filing their
complaints (Table 3.9). The research team during the visits to the Forums found that the
members from the legal background used many unnecessary legal terms which an ordinary
consumer will not understand.
Table 3.9
Problem in Handling Complaints without Law Degree
States Experience Problem Without Law Degree
Yes No Can‟t say
Gujarat 10.2 36.8 33.0
Karnataka 11.5 60.5 28.0
Odisha 11.0 63.0 26.0
Tripura 16.7 83.3 0.0
U.P 6.2 80.4 13.4
Total 8.3 69.8 21.9 Source: Field Survey, Centre for Consumer Studies, IIPA
Note: Analysis of Members‘ Response
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Table 3.10 Essential to Know All the Legal Provisions/Procedures under CPA
States Response
Yes No
Gujarat 96.8 3.2
Karnataka 97.2 2.8
Odisha 100.0 0.0
Tripura 88.9 11.1
U.P 97.3 2.7
Total 97.4 2.6 Source: Field Survey, Centre for Consumer Studies, IIPA
97.4 percent of the respondents are of the view that a member should have a
thorough knowledge and understanding of the Consumer Protection Act and the procedures
to be followed as per the Rules and Regulations. (Table 3.10)
3.4 Problems Faced in the Functioning of District Forums
The Presidents and the Members were asked as to what kind of problems they face
while handling complaints. 62.4 percent indicated lack of supporting staff as the major
problem being faced by the District Forums, 59.7 percent were of the view that inadequate
infrastructure is a hindrance to their functioning. 62.4 percent opined that they lack funds for
their day to day functioning, while 69.6 percent said that there are no adequate facilities for
laboratory testing of the products. Even if a product is sent for testing it takes a lot of time as
every district is not having this facility.
Centre for Consumer Studies, IIPA
83
Table 3.11
Problems Faced in the Functioning by District Forums
Problems
Re
sp
on
se States
G. T
ota
l
Gujarat Karnataka Odisha Tripura U.P
Shortage of Members
Yes 6.5 9.7 14.6 0.0 8.0 8.9
No 93.5 90.3 85.4 100.0 92.0 91.1
Lack of Judicial Knowledge
Yes 3.2 11.1 14.6 55.6 11.3 12.2
No 96.8 88.9 85.4 44.4 88.7 87.8
Lack of Supportive Staff
Yes 80.6 55.6 65.9 77.8 60.0 62.4
No 19.4 44.4 34.1 22.2 40.0 37.6
Lack of Infrastructure
Yes 9.7 31.9 68.3 77.8 80.0 59.7
No 90.3 68.1 31.7 22.2 20.0 40.3
Lack of Fund for day to day Expenses
Yes 87.1 51.4 39.0 66.7 68.7 62.4
No 12.9 48.6 61.0 33.3 31.3 37.6
Problem of Laboratory Test
Yes 87.1 70.8 61.0 66.7 68.0 69.6
No 12.9 29.2 39.0 33.3 32.0 30.4
Non-cooperation from Complainant or Opposite Party
Yes 61.3 84.7 70.7 100.0 46.7 62.0
No 38.7 15.3 29.3 0.0 53.3 38.0
Shortage of Stationery
Yes 61.3 68.1 65.9 77.8 92.7 79.5
No 38.7 31.9 34.1 22.2 7.3 20.5 Source: Field Survey, Centre for Consumer Studies, IIPA
62 percent of the respondents said that there is also lack of cooperation from the
complainant or the opposite party who seek adjournments on one pretext or the other. They
said that even though the law stipulates that no adjournment should ordinarily be granted,
but in practice it is not possible to limit the adjournments due to various practical problems.
Lack of adequate stationery also affects their functioning opined 79.5 percent of the
members (Table 3.11).
3.5 Disposal of Complaints within Time-frame (3/5 months)
One of the major criticisms about the District Forums relates to the delay in disposal
of the complaints. As per the Consumer Protection Act a complaint has to be disposed of
within a period of three months from the date of receipt of notice by opposite party where the
complaint does not require testing of commodities and if testing is required then in five
months. An analysis of the available data from the NCDRC suggests that a larger number of
complaints are pending and more and more complaints are piling up. The members were
asked as to the time taken to dispose of a complaint. 72.3 percent agreed that the
complaints are not disposed of within 3/5 months as stipulated under the Act. Only 27.7
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84
percent said that the complaints are disposed of within the stipulated time frame under the
CP Act (Figure 3.1).
Figure 3.1
Disposal of Complaints within Stipulated Time of 3/5 Months
32.3
62.5
51.2
11.14.7
27.7
67.7
37.5
48.8
88.995.3
72.3
Gujarat Karnataka Odisha Tripura U.P G.Total
Yes No
Source: Field Survey, Centre for Consumer Studies, IIPA
The next question of enquiry was as to the average time taken to dispose of the
complaints. The members opined that around 10.2 percent of the complaints are disposed of
in three months, 17.8 percent of the complaints are disposed of within a period of 5 months,
18.8 percent of complaints are disposed of in 5-9 months. On the other hand 22.8 percent of
the complaints are disposed of within a period of 9-12 months, 19.5 percent within a period
of 1-2 years and 10.9 percent of the complaints take more than 2 years.
Table 3.12 Average Time Taken for the Disposal of Complaints
States Duration
3 Months 5 Months 5 to 9 Months
9 to 12 Months
1 to 2 Years
More than 2 Years
Gujarat 9.7 19.4 29.0 38.7 3.2 0.0
Karnataka 23.6 38.8 27.8 5.6 4.2 0.0
Odisha 19.5 31.7 12.3 19.5 14.6 2.4
Tripura 0.0 11.2 44.4 22.2 22.2 0.0
U.P 2.0 4.0 12.7 29.3 31.3 20.7
Total 10.2 17.8 18.8 22.8 19.5 10.9 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
85
The data
revealed that only
28.0 percent of the
complaints are
disposed of within a
period of upto 5
months while 72
percent of the
complaints take more
than five months. It is
equally interesting that
30.0 percent of the
complaints take more
than a year to be disposed. There is large number of complaints pending in the District
Forums for more than 5 years (Table 3.12).
It is a matter of serious concern that only 28 percent of the complaints are disposed
of within the stipulated time-frame. The delay in disposal of complaints has affected
consumer confidence with the redressal mechanism. Unless the redressal mechanism is
responsive to the needs of the consumers we should not expect them to attract the
consumers. As per records of NCDRC more than 3.5 lac complaints are pending in the
District Forums in the country and in many states the pendency is only increasing. Uttar
Pradesh has the highest pendency of complaints.
3.6 Reasons for Delay in Disposal of Complaints
The need was felt to enquire into the reasons for the delay in disposal of the
complaints. 64.0 percent of the respondents said that it was due to the involvement of
lawyers in the proceedings of the District Forums that has led to the delay in disposal of
complaints. 56.4 percent of the members were of the view that the lawyers were asking for
undue adjournments and they preferred to prolong the cases as was in the case of the
district court. 63.4 percent of the respondents opined that the lawyers do not cooperate with
them in disposal of complaints within time frame. An analysis of data clearly indicates that
the delay is on account of involvement of the lawyers in the District Forums. The
proceedings before the consumer fora are required to be simple and summary procedures
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are to be adopted, but it has become too technical for the common consumer to understand,
hence dependence on the lawyers has increased. Frequent adjournments, strikes, not able
to appear due to case in district courts are some of the reasons cited for the delay by the
lawyers. They also revealed during the discussion that the Bar Association is a powerful
body and they try to dictate terms at times.
Table 3.13
Reasons for Delay in Disposal of Consumers‟ Complaints Within the Prescribed Time Limit
Reasons
Resp
on
se States
G. T
ota
l
Guja
rat
Karn
ata
ka
Odis
ha
Tripura
U.P
Involvement of Lawyer
Yes 61.3 70.8 70.7 11.1 62.7 64.0
No 38.7 29.2 29.3 88.9 37.3 36.0
Non-cooperation by the Lawyers
Yes 51.6 79.2 87.8 77.8 50.7 63.4
No 48.4 20.8 12.2 22.2 49.3 36.6
Asking for Undue Adjournments
Yes 48.4 23.6 43.9 55.6 77.3 56.4
No 51.6 76.4 56.1 44.4 22.7 43.6
Technical Proceedings Yes 93.5 91.7 90.2 88.9 66.0 78.9
No 6.5 8.3 9.8 11.1 34.0 21.1
Disinterested Consumer Yes 87.1 88.9 87.8 55.6 72.0 79.2
No 12.9 11.1 12.2 44.4 28.0 20.8
Lack of Quorum of District Forums
Yes 9.7 9.7 0.0 0.0 20.0 13.2
No 90.3 90.3 100.0 100.0 80.0 86.8
Lack of Product Testing Facility
Yes 87.1 80.6 78.0 77.8 78.0 79.5
No 12.9 19.4 22.0 22.2 22.0 20.5 Source: Field Survey, Centre for Consumer Studies, IIPA
The members of the District Forums also held the consumer liable for the delay. 79.2
percent of them felt that the consumer himself was disinterested in pursuing his case after
filing a complaint. In fact during the discussions they said that the consumers to a large
extent did not pursue their complaints to its logical end but left it to the lawyers to fight their
cases. There are also stances that the consumer has never visited the District Forums after
filing the complaint (Table 3.13).
78.9 percent of them agreed that over time, the proceedings of the forums have
become technical and hence there is delay in disposal of the complaints. Lack of product
testing facilities in the district and nearby was also cited as reason for delay in disposal by
79.5 percent of respondents.
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A further enquiry was made as to the specific problem relating to lab testing facilities.
85.6 percent of the respondents said that there was an inordinate delay in sending the
reports while 97.1 percent of the respondents agreed that it was difficult to interpret the
report. Many of the members lack the expertise to analyse and interpret such reports which
are more or less technical and scientific in nature (Table 3.14).
Table 3.14 Problems relating to Lab Testing Facilities
States Delay in Sending Report
Difficulty in Interpreting Report
Yes No Yes No
Gujarat 96.8 3.2 96.8 3.2
Karnataka 81.9 18.1 97.2 2.8
Odisha 86.7 13.3 100.0 0.0
Tripura 100.0 0.0 100.0 0.0
U.P 84.0 16.0 96.7 3.3
G.Total 85.6 14.4 97.1 2.9 Source: Field Survey, Centre for Consumer Studies, IIPA
3.7 Nature of Problems Faced by District Forums
The survey data by
and large indicates that there
are problems in the
execution of the orders as
they do not have any
independent agency and
depend on the district
administration for execution
of the orders of the District
Forums. 53.1 percent of the
respondents said that they
faced problems in the
execution of their orders. 62.0 percent were of the opinion that the district administration did
not cooperate with the District Forums hence problems in execution of the orders apart from
other problems. (Table 3.15)
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Table 3.15 Nature of Problems Faced by the District Forums
States Problems in Execution
of Orders Non -Cooperation from District Administration
Yes No Yes No
Gujarat 61.3 38.7 12.9 87.1
Karnataka 54.2 45.8 34.7 65.3
Odisha 43.9 56.1 70.7 29.3
Tripura 66.7 33.3 77.8 22.2
U.P 52.7 47.3 82.0 18.0
G.Total 53.1 46.9 62.0 38.0 Source: Field Survey, Centre for Consumer Studies, IIPA
3.8 Reasons Why Consumers Do Not File Complaints
Keeping in
view the large
Indian Consumer
base very few
complaints are
being filed in the
three tier redressal
mechanism. During
the last 25 years
only around 38.27
lac consumers have
filed complaints for
redressal of their
grievances.
Therefore, the
members were further asked as to why the consumers do not come forward to file their
complaints. 75.6 percent agreed that due to the delay in disposal of the complaints the
consumers were hesitant to file a complaint. Moreover, 84.6 percent felt that under the
Consumer Protection Act the amount of compensation given to the consumer is very small
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and due to the delay they incur more expenses than that is awarded to them by the District
Forum.
Table 3.16 Reason Why Consumers do not File Complaints
Reasons
Re
sp
on
se
States
G.T
ota
l
Gu
jara
t
Ka
rnata
ka
Od
ish
a
Tri
pu
ra
U.P
High Cost of Litigation
Yes 9.4 0.0 1.9 16.7 5.4 4.3
No 90.6 100.0 98.1 83.3 94.6 95.7
Delay in Disposal
Yes 86.4 93.1 85.4 100.0 60.6 75.6
No 13.6 6.9 14.6 0.0 39.4 24.4
Complicated Procedure
Yes 20.4 22.5 9.1 0.0 13.1 15.4
No 79.6 77.5 90.9 100.0 86.9 84.6
Small Compensation Amount
Yes 79.6 77.5 90.9 100.0 86.9 84.6
No 20.4 22.5 9.1 0.0 13.1 15.4
Lack of Awareness about Rights
Yes 85.3 89.1 91.0 100.0 80.6 85.0
No 14.7 10.9 9.0 0.0 19.4 15.0
Casual Attitude
Yes 58.1 58.3 54.4 66.7 35.2 46.7
No 41.9 41.7 45.6 33.3 64.8 53.3 Source: Field Survey, Centre for Consumer Studies, IIPA
Majority of them (85.0 percent) also said that there is lack of awareness among the
consumers. Most of the consumers are not even aware about the Consumer Protection Act
and the mechanism for redressal of their grievances. As a result they do not come forward to
file a complaint (Table 3.16). The Indian Consumer by and large blames his fate if something
goes wrong. By nature he is not prepared to assert his rights and remains a silent sufferer.
Perhaps due to illiteracy, poverty, ignorance and lack of awareness he stays away from filing
a complaint in the District Forum apart from other reasons.
3.9 Issues Relating to Functioning of the Forum
There is a common complaint by the consumers that there is no discipline in the
District Forums and the members are not punctual. There are instances where the
relationship between the President and the Members has gone so bad that the District
Forum is not able to perform its functions properly. The members of the forums do not agree
with the views of the consumers.
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Table 3.17 Issues Related to Functioning of DCDRF
States Response of Presidents and Members
Lack o
f
dis
cip
lin
e in
the F
oru
m a
s
alleg
ed
by
co
nsu
mer
Lack o
f
pu
nctu
ality
of
Pre
sid
en
t &
Mem
be
rs
Op
inio
n o
n
fun
cti
on
ing
Rela
tio
n a
mo
ng
mem
bers
of
foru
m
Mem
be
rs
invo
lved
in
wri
tin
g in
jud
gm
en
t
Fo
rum
try
to
do
co
ncilia
tio
n/
Med
iati
on
Yes
No
Yes
No
Good
Satisfa
cto
ry
Unsatisfa
cto
ry
Very
Cord
ial
Cord
ial
Not satisfa
cto
ry
Yes
No
Yes
No
Gujarat 0.0 100.0 3.2 96.8 83.9 16.1 0.0 77.4 22.6 0.0 93.5 6.5 35.5 64.5
Karnataka 5.6 94.4 0.0 100.0 91.7 8.3 0.0 68.1 29.2 2.8 91.7 8.3 65.3 34.7
Odisha 4.9 95.1 0.0 100.0 70.7 29.3 0.0 82.9 17.1 0.0 87.8 12.2 68.3 31.7
Tripura 11.1 88.9 0.0 100.0 22.2 77.8 0.0 66.7 33.3 0.0 22.2 77.8 33.3 66.7
U.P 9.3 90.7 2.7 97.3 73.3 24.7 2.0 68.7 28.0 3.3 65.3 34.7 80.7 19.3
G.Total 6.9 93.1 1.7 98.3 76.9 22.1 1.0 71.3 26.4 2.3 76.2 23.8 69.3 30.7 Source: Field Survey, Centre for Consumer Studies, IIPA
In fact 93.1 percent of them
said that the forums do not lack
discipline and 98.3 percent say
punctuality is not at all a problem.
76.9 percent of them said the
forums are working well and there
exists a cordial relationship among
the members of the District
Forums. However, during the
survey the common complaint from
the complainants was that the
members do not adhere to the time and normally come late and go away early. They also
alleged that many members do not even understand the case and do not write judgments.
But 76.2 percent of the members said they are involved in the judgment writing. On the other
hand while discussing the problem of indiscipline and absenteeism with the Presidents of the
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91
SCDRC they did agree that this is becoming a serious problem. During interactions with the
members they complained that the Presidents don‘t value the knowledge and skill of the
members. Because of their experience and knowledge they do not like to involve the
members in judgement writing and other issues relating to the complaint. Mediation, Lok
Adalat and conciliation are required to be a part of the redressal process. 69.3 percent of the
respondents agreed that they do try to mediate and resolve the issue when the complaint
comes to them (Table 3.17).
3.10 Application of CPC, CrPC and Evidence Act
As per the Consumer Protection Act the Forums are required to follow summary
procedure and dispose of complaints as per the Principles of Natural Justice. Further
Regulation 26 of Consumer Protection Regulations, 2005 provides that in all proceedings
before Consumer Forum endeavour shall be made by the parties and their counsel to avoid
the use of the provisions of CPC. The Provisions of CPC may be applied which have been
referred in the Act or in the rules made thereunder. Thus in the proceedings of the District
Forums the members are not required to apply CPC, CrPC and Evidence Act. But this does
not really happen as most of the Presidents are from judicial services and many members
are from the Bar, hence used to these provisions. 36.3 percent of the members agreed that
they follow CPC, CrPC and Evidence Act to a large extent while 17.5 percent of them said
that they follow these to some extent. However, 46.2 percent of the respondents did not
apply these provisions in the proceedings of the District Forums. While discussing this issue
with the members of the District Forums they agreed in confidence that this is the problem
related with the Presidents who are retired District Judges and they are so used to
exercising these powers (Table 3.18).
Table 3.18 Application of CPC & Evidence Act in Proceeding of District Forums
Application CPC, CrPC & Evidence Act
To large extent To some extent Not at all
Gujarat 35.5 19.4 45.1
Karnataka 41.7 20.8 37.5
Odisha 39.0 12.2 48.8
Tripura 33.4 22.2 44.4
U.P 33.3 16.7 50.0
G. Total 36.3 17.5 46.2 Source: Field Survey, Centre for Consumer Studies, IIPA
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It has also been observed that Maharashtra SCDRC has brought out a scrutiny sheet
for District Forums to see that consumer has complied with certain requirements at the time
of filing complaint which are more or less based on CPC, which has further complicated and
slowed down the procedure (Annexure III).
3.11 Role of VCOs in Consumer Protection and Awareness among Consumers
Under the Consumer Protection Act, 1986 a registered VCO can also file a complaint
on behalf of the consumer. But very few complaints are being filed by the VCOs. However,
63.7 percent of the members of the District Forums are of the view that NGOs should play a
more active role in filing of complaints. They say that it will be helpful to further the objectives
of the Consumer Protection Act. It will also be in consumers‘ interest that the NGOs play a
more active role. 80.9 percent of the respondents say that consumers‘ awareness about
their rights is very less, and hence they do not understand the proceedings (Table 3.19).
Table 3.19
Role of NGOs & VCOs and Awareness about Consumer Rights
States Should NGOs/VCOs Play Active Role in Filing Complaints
Are Consumer Aware about their Rights
Yes No Very much Very less Don't know
Gujarat 77.4 22.6 0.0 100.0 0.0
Karnataka 66.7 33.3 19.4 72.2 8.3
Odisha 63.4 36.6 17.1 75.6 7.3
Tripura 55.6 44.4 0.0 100.0 0.0
U.P 60.0 40.0 16.0 81.3 2.7
G. Total 63.7 36.3 14.9 80.9 4.3 Source: Field Survey, Centre for Consumer Studies, IIPA
3.12 Involvement of Lawyers in District Forums
The spirit behind the Consumer Protection Act is that the procedures would be
simple, justice delivery quick and summary trial based on principles of natural justice. The
regulations make the intentions very clear that these redressal agencies would not be a
replica of the civil courts nor have the resemblances of a civil court. They should also not
follow the procedures of civil courts and in fact not even look like a civil court. It was not
envisaged that lawyers would be part of the proceedings as it has defined who is a
complainant.
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93
During discussions the members no doubt agreed that there are problems because
of the lawyers but they also agreed that the consumers do not understand the documents
required and other formalities to be completed. They do not understand the proceedings of
the District Forum; therefore, the appearance of the lawyers in the forums is helpful to the
consumers. In fact it was more convenient to the District Forums (51.8 percent).
Table 3.20
Perception of Forums about Involvement of Lawyers
States
Is Appearance of Advocates in Forum Helpful
to the Consumer
Do Lawyers Prolong the Case on Ground other
than Merit
Do Lawyers Make the Proceedings too
technical and Difficult for the Consumers?
Helpful to large extent
Sometime Helpful
Yes No Yes No
Gujarat 75.8 24.2 52.4 47.6 61.2 38.8
Karnataka 50.9 49.1 38.2 61.8 87.8 12.2
Odisha 29.1 70.9 49.2 50.8 74.5 25.5
Tripura 33.4 66.6 83.4 16.6 33.3 66.7
U.P 53.9 46.1 74.6 25.4 51.6 48.4
G. Total 51.8 48.2 60.2 39.8 64.0 36.0 Source: Field Survey, Centre for Consumer Studies, IIPA
However, 60.2 percent of them also
agreed that the lawyers prolong the case on one
pretext or the other. In the process what happens
is that the proceedings become too technical for
the consumer to understand (64.0 percent).
Therefore, they are forced to engage a lawyer to
contest the case (Table 3.20).
3.13 District Consumer Protection
Council
Under the Consumer Protection Act a District Consumer Protection Council is to be
constituted in each District. Only 25.2 percent of the members are aware about the District
Consumer Protection Councils. However, only 35.7 percent of those aware said that it has
been constituted in their district. In many districts these councils are not at all active. Most of
the members of the District Forums said that they are not at all involved in the DCPC so they
will not be able to give much information about it. The research team also met the District
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94
Collector and other Officers but not much information was available about the role of DCPC
in promoting consumer welfare (Table 3.21).
Table 3.21
Functioning of District Consumer Protection Councils
States Are you Aware about DCPC?
Has DCPC been Constituted in your district
Do you Have Funds to Educate the Consumer?
Yes No Yes No Yes No
Gujarat 35.0 65.0 40.3 59.7 0.0 100
Karnataka 19.0 81.0 40.4 59.6 2.8 97.2
Odisha 11.0 89.0 21.0 79.0 20.1 79.9
Tripura 33.4 66.6 36.6 63.4 33.3 66.7
U.P 27.8 72.2 40.1 59.9 10.6 89.4
G. Total 25.2 74.8 35.7 64.3 9.8 90.2 Source: Field Survey, Centre for Consumer Studies, IIPA
3.14 Involvement of Forum in Educating Consumers
As regards funds at the disposal of the District Forums to educates the consumers.
90.2 percent said they do not get any fund to educate the consumers. They were of the view
that funds are sent to the District Collector and not to the District Forums which should be
the case. Some of them complained that the District Collector does not even invite them if
any programme is organised in the district relating to consumer awareness (Figure 3.2).
Figure 3.2
Do you Have Funds to Educate the Consumer ?
0
100
2.8
97.2
20.1
79.9
33.3
66.7
9.8
90.2
Yes No Yes No Yes No Yes No Yes No
Gujarat Karnataka Odisha Tripura G.Total
Source: Field Survey, Centre for Consumer Studies, IIPA
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95
3.15 Opinion on Quality of Members and Honorarium
One of the problems with the working of the District Forums is that many of the
members particularly the lady members lack knowledge and skill to perform their functions.
The respondents were asked about the quality of the members of the forums and the
honorarium being paid to them. Even though the Shenoy Committee had recommended a
uniform pattern of honorarium to the members of the District Forums yet all states have not
adopted the recommendations.
In some states the members‘ honorarium is less than what a State Government
Class IV employee draws. 91.1 percent of the members agreed that due to low honorarium
qualified and competent people are not attracted to take up the job. 95.6 percent agreed that
the honorarium should be increased. During the discussions the respondents also said that
other facilities like housing, telephone, travel allowance etc. should also be provided to them.
The Presidents wanted residential accommodation and vehicle to discharge their duties in a
better way. The fact cannot be denied that there is a need to enhance the honorarium being
paid to the members. A uniform pattern should prevail throughout the country and the
members of the quasi-judicial bodies should be treated with respect and dignity otherwise
the consumer will not have faith in the redressal mechanism due to their poor functioning
(Table 3.22).
Table 3.22 Quality and Honorarium to Members
States Qualified People are not Attracted due to Less
Honorarium
Should Honorarium of Member be Increased
Yes No Yes No
Gujarat 93.2 6.8 95.8 4.2
Karnataka 90.2 9.8 96.6 3.5
Odisha 100.0 0.0 100.0 0.0
Tripura 100.0 0.0 100.0 0.0
U.P 88.2 11.8 92.8 7.2
G.Total 91.1 8.9 95.6 4.4 Source: Field Survey, Centre for Consumer Studies, IIPA
Suggestions on Increase of Honorarium
As a sequel of the Conference held on 14th -15th March, 2008, a Committee under
the Chairmanship of Dr. P.D. Shenoy, Former Member, National Consumer Disputes
Centre for Consumer Studies, IIPA
96
Redressal Commission was constituted on the subject of uniform pay structure to members
of State Commissions/District Forums. The Committee made the following
recommendations:
The service conditions, salary and allowances of the President of the State Commission shall be the same as that of a sitting Judge of the High Court.
Member of the State Commission appointed on a whole-time basis shall be entitled to pay and allowances as are available to a sitting District Judge.
If a Member of a State Commission is appointed on part-time basis, he/she shall be paid Honorarium of not less than ` 1000/- and conveyance allowance of not less than ` 300/- per day of sitting.
The President of the District Forum shall be entitled to pay and allowances payable to a sitting District Judge (minus pension drawn, if any).
Members of the District Forum appointed on whole time basis shall be entitled to not less than ` 15,000/- per month by way of Honorarium plus not less than ` 3,000/- as conveyance allowance per month.
If a Member of the District Forum is appointed on part-time basis, he/she shall be entitled to Honorarium of not less than ` 600/ and conveyance allowance of not
less than ` 150/- per day of sitting.
Table 3.23
Honorarium/Remuneration being Paid to the Presidents & Members of State Commissions and Presidents & Members of District Forums
Sl. No.
Name of the States
State Commission District Fora
Presidents Members Presidents Members
1. Gujarat Whole Time – High Court Judge
Full Time - `
6,500/- p.m. Part Time - ` 400/-
per day sitting
Full Time – salary of District Judge
Whole Time - `
3,000/- p.m. Part Time - `
150/- per day sitting
2. Karnataka Salary & Allowances as applicable to the present sitting Judges of Hon‘ble High Court of Karnataka
Honorarium `
11,000/- p.m. + ` 2000/-
conveyance allowance (per month)
Salary & Allowances as applicable to the present sitting District Judges
Honorarium `
8,000/- p.m. + ` 1000/-
conveyance allowance (per month)
3. Odisha Salary of sitting Judge High Court Judge less Pension.
` 12,500/- p.m. ` 8,500/- p.m. ` 6,500/- p.m.
4. Tripura Full Time – High Court Judge ` 90,000/- + Pension and Govt. Vehicle
` 300/- per sitting
and Govt. Vehicle ` 300/- per sitting
(District Judges are holding the post)
` 200/- per
sitting
Centre for Consumer Studies, IIPA
97
5. Uttar Pradesh
Last Pay drawn less Pension + HRA @ `
10,000/- + CCA +S.A + D.A.
Honorarium ` 15262/- + HRA @ ` 3000/- + Conveyance @ ` 2630/- p.m.
Full Time – last pay drawn less Pension + DA + HRA @ ` 2400/-
+ Conveyance - `1830/- p.m.
Full Time – `
10176/- p.m. + HRA @ ` 1800/- p.m. + Conveyance - `1830/- p.m.
Part Time - ` 400/-
per day
Part Time - ` 400/-
per day
Part Time – Honorarium ` 400/- per sitting + HRA @ ` 8000/-
p.m. + Conveyance ` 1830/- p.m.
Part Time – Honorarium ` 300/- per sitting + HRA @ ` 1800/- p.m. + Conveyance ` 1830/- p.m.
Source: Agenda for the Meeting with Secretaries in-charge Consumer Affairs & Presidents State Commission,
DCA, 14th
March, 2012
A statement given in table 3.23 provides the details of the
Salary/Honorarium/Perquisites being paid by State Governments to the Presidents and
Members of the State Commissions and District Forums in the five selected states. It may be
observed therefrom that most of the State Governments have not implemented the
recommendations made by the P. D. Shenoy Committee. Moreover, consequent to the
implementation of the recommendations of the Vl Central Pay Commission, necessary
consequential changes would also have to be taken into account while enhancing the
Salary/Honorarium/Perquisites of Presidents and Members of the State Commissions and
District Fora. Lack of adequate remuneration is a major constraint leading to paucity of good
candidates of high calibre and capability, applying for posts of Members in State
Commissions and District Forums.34
The salary of the Presidents is that of the District Judge. The Presidents were asked
to suggest the suitable amount for the honorarium of the members. 52.1 percent of the
Presidents agreed that it should be atleast ` 25000. 25.1 percent opined that it should be
fixed between ` 25000-35000 and 16.0 percent opined that it should be above ` 35000.
However, to a question whether the salary of the members be equal to the President of the
District Forum, only 6.8 percent of them agreed to this suggestion. But most of the
Presidents felt that it should be a respectable amount. Most of them said that the
34 Agenda for the Meeting with Secretaries in-charge Consumer Affairs & Presidents State Commission, DCA,
14th
March, 2012 p. 6
Centre for Consumer Studies, IIPA
98
experience, qualification and other service conditions of the Presidents and Members cannot
be equated (Table 3.24).
Table 3.24 Suggestions for Increase of Honorarium
(Views of Presidents)
States Amount (`)
At least 25000 25000-35000 Above 35000 Equal to President‘s Salary
Gujarat 40.0 28.0 20.0 12.0
Karnataka 49.0 21.6 19.6 9.8
Odisha 52.6 21.1 15.8 10.5
Tripura 44.4 33.4 22.2 0.0
U.P 56.5 26.2 13.0 4.3
Total 52.1 25.1 16.0 6.8 Source: Field Survey, Centre for Consumer Studies, IIPA
3.16 Level of Computer Literacy and CONFONET Project
For computerization to be successful the level of computer literacy has to be good.
Unless people use computers they would not be able to appreciate its application in
enhancing efficiency and effectiveness. The data revealed that only 16.1 percent of the
members and the staff of the District Forums knew how to use and work efficiently on
computers. 37.7 percent of the respondents can use the computers to some extent but are
not very efficient and the output is too low. They also are not frequent users of computers.
46.2 percent of the respondents are not computer literates. It was also found that many
Presidents and Members do not know how to use computers and depend on the staff for
information; hence they are not able to monitor the progress. Many Presidents said they
were too old to learn computers and now it‘s too late (Figure 3.3).
Centre for Consumer Studies, IIPA
99
Figure 3.3
Level of Computer Litracy (District Forum Members and Staff)
26.6
63.2
10.2
29.6
48.4
22.0
10.5
23.5
66.0
8.6
18.2
73.2
5.4
15.2
79.4
16.1
37.7
46.2
Ve
ry m
uc
h
So
me
ex
ten
No
t a
t a
ll
Ve
ry m
uc
h
So
me
ex
ten
No
t a
t a
ll
Ve
ry m
uc
h
So
me
ex
ten
No
t a
t a
ll
Ve
ry m
uc
h
So
me
ex
ten
No
t a
t a
ll
Ve
ry m
uc
h
So
me
ex
ten
No
t a
t a
ll
Ve
ry m
uc
h
So
me
ex
ten
No
t a
t a
ll
Gujarat Karnataka Odisha Tripura U.P G.Total
Source: Field Survey, Centre for Consumer Studies, IIPA
3.16.1 Status of CONFONET Project
The CONFONET
Project has been launched
by the Department of
Consumer Affairs in
collaboration with the NIC.
The project aims to help
better management of data
and monitor the progress of
complaint. A large number of
members are not computer
literate and therefore, do not
realize and appreciate the
use of computers and its impact. 73.3 percent of the respondents do not know about the
CONFONET Project but are aware about computerization of the District Forums. They are
under the impression that it is being done by the State Government. But 80.5 percent agreed
that computerization has helped in data management but only 49.2 percent said that the
status reports are being uploaded on daily basis. One of the main reasons for this is that
there is no full time technical staff, opined 77.2 percent of the respondents. They cited a
number of other reasons like poor internet connectivity, faulty UPS, out-dated computers,
Centre for Consumer Studies, IIPA
100
lack of computer peripherals, poor maintenance of the system and lack of computer skills
among the members. (Table 3.25)
Table 3.25
Status of CONFONET Project in DCDRF
States
Aware about CONFONET
Project?
Computerization Has helped in
Data Management
Status of Complaint Filed and Disposed
being uploaded on Daily Basis?
Is there Full Time Staff to Upload Data?
Yes No Yes No Yes No Yes No
Gujarat 19.4 80.6 87.1 12.9 58.1 41.9 3.2 96.8
Karnataka 19.4 80.6 97.2 2.8 90.3 9.7 58.3 41.7
Odisha 22.0 78.0 70.7 29.3 51.2 48.8 7.3 92.7
Tripura 88.9 11.1 66.7 33.3 0.0 100.0 0.0 100.0
U.P 29.3 70.7 74.7 25.3 30.0 70.0 15.3 84.7
G.Total 26.7 73.3 80.5 19.5 49.2 50.8 22.8 77.2 Source: Field Survey, Centre for Consumer Studies, IIPA
In fact there is a need to give wider publicity to the CONFONET Project and each
and every member and staff should be briefed about the objective, purpose and use of the
Project. This should be done by the DIC of each district. Imparting computer education and
enhancing skills has to be part and parcel of any project component. As the project
executing agency NIC should draw up a comprehensive roadmap to train the members and
the staff of the District Forums and the State Commissions.
3.16.2 Problems in Computerisation and Related Activities
There are various problems which affect computersiation and various activities
associated with it. There is no full time dedicated data entry staff with technical knowledge
opined 72.8 percent of the respondents. The internet connectivity is poor and disruption is
frequent according to 53.8 percent of the respondents.
Centre for Consumer Studies, IIPA
101
Table 3.26 (Part-I)
Problems in Computerization and Related Activities
States
Problems
No Data Entry Operator
Poor Internet Connectivity
Inadequate Infrastructure
Poor Management of Manual Records
Yes No Yes No Yes No Yes No
Gujarat 64.0 36.0 44.7 55.3 59.8 40.2 21.1 78.9
Karnataka 72.7 27.3 41.7 58.3 65.5 34.5 23.8 76.2
Odisha 72.0 28.0 47.0 53.0 50.1 49.9 20.3 79.7
Tripura 64.5 35.5 52.6 47.4 46.0 54.0 18.4 81.6
U.P 66.7 33.3 83.4 16.6 38.8 61.2 9.3 90.7
G.Total 72.8 27.2 53.8 46.2 41.5 58.5 13.8 86.2 Source: Field Survey, Centre for Consumer Studies, IIPA
Inadequate infrastructure was pointed out by 41.5 percent of the respondents, lack of
computer education by 53.7 percent. 72.2 were of the view that the problem is due to poor
maintenance of computers. They also blamed the State Governments for not providing
hardware and software to manage the system (82.1 percent) (Table 3.26, Part I & II).
Table 3.26 (Part-II) Problems in Computerization and Related Activities
States
Problems
Lack of Computer Education
Maintenance and Poor Management of
Computers
State Govt. is not Coming Forward to Obtain Hardware/Software
Yes No Yes No Yes No
Gujarat 45.3 54.7 55 45 68.3 31.7
Karnataka 45.2 54.8 54.8 45.2 54.8 45.2
Odisha 40.4 59.6 58.2 41.8 71.6 28.4
Tripura 57.1 42.9 69.7 30.3 81.0 19.0
U.P 88.9 11.1 79.6 20.4 59.3 40.7
G.Total 53.7 46.3 72.2 27.8 82.1 17.9 Source: Field Survey, Centre for Consumer Studies, IIPA
3.17 Participation in Training Programmes
Capacity building of the members of the District Forums is very important. They need
to be oriented about the need and importance of Consumer Protection Act and its various
provisions. Apart from this they need to be updated on the Judicial Orders of the Supreme
Centre for Consumer Studies, IIPA
102
Court and NCDRC. 60.2 percent of the members have attended a training programme and
63.2 percent of them found it to be very useful and they benefited from the programme. 26.2
percent found it to be helpful to some extent and 7.6 percent did not feel the need to attend
a training programme.
Table 3.27 Participation in Training Programmes
Designation Have attended training programme? How helpful is the training programme?
Yes No Very much Some Extent No need of this
Gujarat 30.9 69.1 67.3 30.1 2.6
Karnataka 60.7 39.3 71.3 24.3 4.4
Odisha 20.0 80.0 74.5 22.5 3.0
Tripura 50.8 49.2 60.2 34.2 5.6
U.P 72.0 28.0 54.0 28.0 18.0
G. Total 60.2 39.8 63.2 29.2 7.6 Source: Field Survey, Centre for Consumer Studies, IIPA
These were mainly the Presidents of the District Forums who have put in a long
number of years as judicial officers. But there is a need to change the attitude of the judicial
officers. They need to be consumer friendly and approachable. They also need to restrain
from behaving like Judges. The members‘ skill to understand and write judgments should be
developed and knowledge about consumer law and policy needs to be upgraded. In fact
there is a need to introduce atleast two weeks induction training for the non-judicial
members (Table 3.27).
Table 3.28 Place of Training Attended by Presidents and Members
Place of Training
States
G.Total Gujarat Karnataka Odisha Tripura U.P
Bengaluru 0.0 21.4 0.0 NA 0.0 5.0
Lucknow 0.0 0.0 0.0 NA 17.5 10.5
Ahmedabad 10.0 0.0 0.0 NA 0.0 0.5
Bhopal 10.0 2.4 0.0 NA 0.0 1.1
Bhubaneswar 0.0 0.0 65.0 NA 0.0 7.2
Hyderabad 0.0 9.5 0.0 NA 0.0 2.2
IIPA, New Delhi 80.0 66.7 35.0 NA 82.5 73.5 Source: Field Survey, Centre for Consumer Studies, IIPA
As regard the place of training nearly 73.5 percent had attended a training
programme at IIPA, New Delhi. The training needs to be a continuous affairs and it would be
better that it is held at regular intervals (Table 3.28).
Centre for Consumer Studies, IIPA
103
SECTION II: Working of District Forums
3.18 Status of Infrastructure
The study examined the infrastructure of the District Forums in great detail. There
are wide variations among the states as far as infrastructure is concerned. Some of the
District Forums are functioning in a pathetic situation devoid of even basic amenities. Based
on the questionnaire, discussions and observations the results have been tabulated and
presented below.
3.18.1 Grants released under SCF Scheme
The Central Government has been extending financial assistance to States/UTs for
strengthening the infrastructure of consumer fora so that minimum level of facilities is made
available at each consumer forum, which are required for their effective functioning.
Infrastructural facilities for which financial assistance is being given to States/UTs under the
Scheme for Strengthening Consumer Fora, include construction of new building of the
consumer fora, carrying out addition/ alteration/ renovation of existing buildings and grant
for acquiring non-building assets such as furniture, office equipment, etc. Details of
Financial Assistance availed by the concerned States under the Scheme for Strengthening
of Consumer Fora so far, may be seen in Table 3.29. The central government proposes to
continue this scheme into the Xll Plan period. In the Xll Plan Scheme, it is also proposed to
give additional financial assistance to States/UTs for construction of a mediation centre with
an area of 1000 sq. ft. in each consumer forum.
Table 3.29 Assistance Released during 4 Years under Scheme for Strengthening of Consumer
Fora (SCF) (as on 22-02-2012)
States Assistance Released in SCF Scheme Total Amount
Released 2008-09 2009-10 2010-11 2011-12
Gujarat 508.25 393.33 455.5 ----- 1357.08
Karnataka 384.61 ----- ----- ----- 384.61
Odisha 103.5 ----- ----- ----- 103.5
Tripura 20.85 ----- 46.2 ----- 67.05
U.P 91.81 ----- 227.66 ----- 319.47
Total 1319.87 700.5 1057.6 651.5 3729.43 Source: National Consumer Disputes Redressal Commission
Centre for Consumer Studies, IIPA
104
3.18.2 Infrastructure Details of District Forum
The infrastructure of the District Forum is best in Gujarat out of the five sampled
states and all the District Forums have their own building. The survey data reveals that 63.7
percent of the District Forums have their own building while 22.7 percent are housed in
government accommodation and 13.6
percent are in rented buildings. All the
District Forums in Tripura are located in
government accommodation. All the
forums have adequate furniture. In fact
few of them have furniture in excess.
Majority of the forums have their own
library facilities. Most of the forums do
not have official vehicle as and when
needed they hire a vehicle. But during
the visit it was found that the
maintenance of the infrastructure is very poor. Almariahs are stacked in the verandas,
records are thrown around, broken tables and chairs are piled up and the upkeep of the
building is very poor. There is no help desk for the consumers. In fact the facilities for the
complainants are inadequate and look more like Civil Courts (Table 3.30).
Table 3.30 Infrastructure Details of District Forums
Infrastructure Particulars States G. Total Gujarat Karnataka Odisha Tripura U.P
Building
Own 100 55.2 71.4 0 61.5 63.7
On rent 0 24.1 0 0 15.4 13.6
Govt. facility 0 20.7 28.6 100 23.1 22.7
Furniture
Own 100.0 82.1 71.4 66.7 96.2 89.0
On rent 0.0 17.9 28.6 33.3 3.8 11.0
Vehicle
Own 83.3 6.9 0.0 0.0 1.9 11.8
Govt. facility 16.7 93.1 100 100 98.1 88.2
Adequate Toilet facilities
Yes 100.0 75.9 92.9 0.0 75.0 78.2
No 0 24.1 7.1 100 25 21.8 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
105
3.18.3 IT Infrastructure
Computerization of the District Forums is a major project being implemented by the
government. 86.4 percent of the forums have computer hardware. Some are using
government facilities. Internet is there but it is slow and disruption in service is very frequent.
This disrupts the work of the forum as well. 10.9 percent of the forums do not have internet
connectivity; these are mainly in Tripura and Uttar Pradesh. Fax machine is also available in
81.8 percent of the sampled district forums. Similar is the case of photocopier which is more
or less there in every district forum. The problem is of maintenance and repair of the
hardware (Table 3.31).
Table 3.31
Status of Information Communication Technology in District Forums
Infr
astr
uctu
re
Part
icu
lars
States
G. T
ota
l
Gujarat Karnataka Odisha Tripura U.P
Computer Hardware
Own 100.0 82.8 64.3 33.3 94.2 86.4
On rent 0.0 0.0 0.0 0.0 0.0 0.0
Govt. facility 0.0 10.3 28.6 66.7 3.8 10.0
Not available 0.0 6.9 7.1 0.0 1.9 3.6
Internet
Own 100.0 82.8 78.6 0.0 73.1 77.3
On rent 0.0 0.0 0.0 0.0 5.8 2.7
Govt. facility 0.0 13.8 21.4 66.7 1.9 9.1
Not available 0.0 3.4 0.0 33.3 19.2 10.9
Fax Machine
Own 83.3 72.4 64.3 0.0 96.2 81.8
On rent 0.0 0.0 0.0 0.0 0.0 0.0
Govt. facility 0.0 0.0 0.0 0.0 0.0 0.0
Not available 16.7 27.6 35.7 100.0 3.8 18.2
Photocopier
Own 75.0 82.8 78.6 33.3 90.5 83.6
On rent 0.0 0.0 0.0 0.0 0.0 0.0
Govt. facility 25.0 13.8 14.3 66.7 1.9 10.9
Not available 0.0 3.4 7.1 0.0 7.7 5.5 Source: Field Survey, Centre for Consumer Studies, IIPA
3.19 Distribution of Cases - Sector Wise
The District Forums entertain a variety of complaints. But during the last two years
maximum number of complaints filed relate to the service sector. Electricity constitutes 18.5
Centre for Consumer Studies, IIPA
106
percent of all the complaints filed, followed by insurance 17.3 percent, banking 12 percent,
and telecommunications 7.5 percent. It is to be seen that these service sectors constitute
more than half of the complaints filed i.e. 55.3 percent of all the complaints. Complaints
about defective goods constitute only 5.0 percent of the complaints filed during the last two
years. The number of complaints relating to service sector is increasing, indicating that the
service sector consumer redressal mechanism is not able to address consumer complaints
adequately. There is a need to enhance efficacy of the area specific redressal mechanism
so that lesser complaints come to the District Forums for redressal (Table 3.32).
Table 3.32
Cases Filed from Different Sectors (in Last Two Years) (in %)
Sector States G. Total
Gujarat Karnataka Odisha Tripura U.P
Defective Goods 7.1 5.2 18.5 10.5 4.2 5.0
Electricity 11.9 2.5 22.2 12.6 26.0 18.5
Insurance 49.8 15.7 12.1 28.8 16.3 17.3
Housing 2.7 17.0 1.9 0.0 3.1 7.0
Banking 7.1 9.6 15.1 11.0 13.1 12.0
Medical Negligence 1.4 1.3 1.4 2.9 2.3 1.9
Transport 1.2 1.3 0.2 1.0 0.6 0.8
Telecommunications 3.1 2.7 3.1 9.0 10.1 7.5
UTP/RTP 0.2 0.0 0.5 0.2 0.2 0.1
Hazardous Goods 0.2 0.1 0.6 0.0 0.4 0.3
Misleading Advertisements 0.4 0.0 0.0 0.0 0.0 0.0
Any others 14.9 44.6 24.4 24.0 23.7 29.6 Source: Field Survey, Centre for Consumer Studies, IIPA
3.20 Average Number of Complaints Filed and Disposed of
Due to lack of consumer
awareness the number of complaints
filed in the District Forums is not very
high keeping in view the population
and consumer base of the country. In
40.0 percent of the District Forums
less than 15 cases are being filed in
a month. In 37.3 percent of the
forums the number of complaints
Centre for Consumer Studies, IIPA
107
filed is between 15-30. 30-45 complaints are filed in about 11.8 percent of the forums and in
about 11 percent of the forums more than 45 complaints are being filed in a month. This is
mainly confined to the states of Gujarat and Karnataka (Table 3.33).
Table 3.33
Average Number of Complaints Filed in DCDRFs
States Average No. of Cases (Monthly)
Less than 15 15-30 30-45 More than 45
Gujarat 25.0 50.0 8.3 16.7
Karnataka 34.5 24.1 17.2 24.1
Odisha 78.6 7.1 14.3 0.0
Tripura 100.0 0.0 0.0 0.0
U.P 32.7 51.9 9.6 5.8
Total 40.0 37.3 11.8 10.9 Source: Field Survey, Centre for Consumer Studies, IIPA
The disposal of the complaints is also not very good. As per the survey data, 31.8
percent of the forums disposed of less than 15 cases every month. 30 percent of the forums
disposed of 15-30 cases, 20.9 percent of the forums disposed of between 30-45 cases while
more than 45 cases were disposed of by 17.3 percent of the District Forums. As a result of
this the pendency of complaints is increasing. The District Forums need to adhere to the
guidelines of the NCDRC in disposing the number of cases per month (Table 3.34).
Table 3.34
Average Number of Cases Disposed of in DCDRFs
States Average No. of Cases (Monthly)
Less than 15 15-30 30-45 More than 45
Gujarat 16.7 50.0 16.7 16.7
Karnataka 37.9 24.1 24.1 13.8
Odisha 71.4 28.6 0.0 0.0
Tripura 100.0 0.0 0.0 0.0
U.P 17.3 30.8 26.9 25.0
Total 31.8 30.0 20.9 17.3 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
108
If we take into account the status of the cases in the 10 sampled District Forums of
the five states the average disposal rate is 90.1 percent while 9.9 percent of the cases are
pending. Pendency is least in Karnataka (3.3 percent) and highest in Uttar Pradesh (15.8
percent) followed by Gujarat, 15.3 percent. But the major question of interest is as to what is
the time taken to the dispose of the complaints (Table 3.35).
Table 3.35
Status of Cases in Sample DCDRFs
States/Districts
Status
Disposal Rate Pending Gujarat 84.7 15.3
Surat 2.5 97.5
Junagardh 90.7 9.3
Karnataka 96.7 3.3
Simoga 95.7 4.3
Bangalore-1 Rural 99.3 0.7
Odisha 91.7 8.3
Puri 82.3 17.7
Balasore 90.1 9.9
Tripura 93.1 6.9
S.Tripura 94.5 5.5
W.Tripura 91.7 8.3
U.P 84.2 15.8
Azamgarh 81.7 18.3
Meerut 80.5 19.5
Total 90.1 9.9 Source: Field Survey, Centre for Consumer Studies, IIPA
Table 3.36 Year wise Case Status at Different Levels
Forums 2012 2011 2010 2009 2008 2007
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
NCDRC 86.5 13.5 87.3 12.7 87.7 12.3 83.1 16.9 92.9 7.1 95.4 4.6
SCDRCs 83.4 16.6 80.7 19.3 78.2 21.8 75.9 24.1 100.1 0.0 88.6 11.4
DCDRFs 92.3 7.7 91.5 8.5 90.9 9.1 91.1 8.9 91.4 8.6 73.5 26.5 Source: National Consumer Disputes Redressal Commission
Centre for Consumer Studies, IIPA
109
Table 3.37 Year wise Case Status in DCDRFs
Forums 2012 2011 2010 2009 2008 2007
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Dis
po
sa
l ra
te
Pe
nd
ing
Cas
es
Gujarat 90.2 9.8 88.2 11.8 85.3 14.7 84.3 15.7 83.8 16.2 88.6 11.4
Karnataka 97.2 2.8 95.9 4.1 96.3 3.7 96.3 3.7 98.5 1.5 99.9 0.1
Odisha 93.6 6.4 93.4 6.6 94.0 6.0 93.9 6.1 100.2 0.0 79.1 20.9
Tripura 93.3 6.7 89.7 10.3 89.7 10.3 89.7 10.3 NA NA NA NA
U.P 85.4 14.6 84.1 15.9 83.4 16.6 83.1 16.9 79.0 21.0 87.1 12.9
India 92.0 8.0 91.5 8.5 90.9 9.1 91.1 8.9 91.4 8.6 73.5 26.5 Source: National Consumer Disputes Redressal Commission
A classification of the complaints area wise in the sampled district forums reveals
that 48.5 percent of the cases being filed are from rural areas while 51.5 percent are from
urban areas. It is also to be noted that most of the forums sampled are largely rural districts.
(Figure 3.4 & Table 3.38)
Figure 3.4
Area wise Complaints Filed (in %)
43.1
56.9
41.3
58.755.9
44.148.8 51.2 53.5
46.5 48.551.5
Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban
Gujarat Karnataka Odisha Tripura U.P G.Total
Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
110
Table 3.38 Area wise Percentage of Complaints Filed
(Sampled District Forums)
States/Districts Areas wise Ratio
Rural Urban
Gujarat 43.1 56.9
Surat 1.0 99.0
Junagardh 28.9 71.1
Karnataka 41.3 58.7
Simoga NA NA
Bangalore-1 Rural 50.4 49.6
Odisha 55.9 44.1
Puri 64.7 35.3
Balasore NA NA
Tripura 48.8 51.2
S.Tripura 17.7 82.3
W.Tripura 80.0 20.0
U.P 53.5 46.5
Azamgarh 42.1 57.9
Meerut 57.3 42.7
Total 48.5 51.5 Source: Field Survey, Centre for Consumer Studies, IIPA
3.21 Oldest Complaint Pending in the District Forums
Table 3.39
Oldest Complaint Pending in DCDRFs
Years
States
G. Total Gujarat Karnataka Odisha Tripura U.P
Before 2001* 0.0 0.0 0.0 0.0 46.2 21.8
2001 0.0 0.0 0.0 0.0 3.8 1.8
2002 8.3 0.0 7.1 0.0 9.6 6.4
2003 8.3 0.0 0.0 0.0 13.5 7.3
2004 0.0 0.0 7.1 0.0 3.8 2.7
2006 16.7 0.0 7.1 0.0 5.8 5.5
2007 0.0 0.0 7.1 0.0 5.8 3.6
2008 8.3 3.4 7.1 0.0 5.8 5.5
2009 8.3 10.3 0.0 0.0 5.8 6.4
2010 0.0 44.8 42.9 33.3 0.0 18.2
2011 50.0 37.9 21.4 66.7 0.0 20.0
2012 0.0 3.4 0.0 0.0 0.0 0.9 Source: Field Survey, Centre for Consumer Studies, IIPA
* Before 2001 data contains from year 1991 to 2000. 5.8% cases pending in DCDRFs of Uttar Pradesh are of year 1991.
Centre for Consumer Studies, IIPA
111
The largest number of complaints is pending in Uttar Pradesh as per the data of
NCDRC. Apart from various other reasons, vacancies of the members and not filling up the
vacancies in time are also the major reasons. The pendency of complaints is increasing in
the District Forums day by day. 46.2 percent of the cases pending in Uttar Pradesh date
back to 2001 which constitute 21.8 percent of the total pendency before 2001. Based on the
available data 18.2 percent of the cases filed in 2010 are yet to be disposed of, while 20.0
percent of the cases filed in 2011 are still pending. This does not include the data of Uttar
Pradesh which is presently not available (Table 3.39).
3.22 Time Taken to Dispose Cases
The Consumer Protection Act mandates that the complaints are to be disposed of
within three months and if testing is required within five months. However, the survey data of
the sampled district forums reveals that nearly 35.3 percent of the cases take more than 3
years to be disposed. Only 21.6 percent of the cases are disposed of within a period of 3-5
months while 20.8 percent of the cases are disposed of within a period of 5 months to one
year. 11.8 percent are disposed in 1-2 years time while it takes between 2-3 years to
dispose of 10.5 percent of the cases in the District Forums (Table 3.40).
Table 3.40 Time Taken to Dispose Cases (last 2 years) (in %)
(Sampled District Forums)
States/Sample DCDRF
Duration
Within 3-5 Months
5 Months-1 Year
1 to 2 Years
2 to 3Years
More than 3 Years
Gujarat 20 29.9 29.1 10.6 10.4
Surat 17.8 30.7 25.5 17 9
Junagardh NA NA NA NA NA
Karnataka 52.4 37.7 8.6 1.2 0.1
Simoga 46.9 14.5 38.6 0 0
Bangalore-1 Rural NA NA NA NA NA
Odisha 64.3 24.9 7.7 2.8 0.4
Puri 50 20.7 14.2 15 0
Balasore 18.9 43.3 24.9 8.6 4.3
Tripura 4.3 10 17.2 17.1 51.4
S.Tripura 4.3 10 17.2 17.1 51.4
W.Tripura NA NA NA NA NA
U.P 8.1 13.7 11.7 14.3 52.2
Azamgarh 12 20.8 23.5 23.9 19.8
Meerut 2.5 5.5 8.8 28.6 54.6
G.Total 21.6 20.8 11.8 10.5 35.3 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
112
3.23 Reliefs Granted by the District Forum
The Consumer
Protection Act enumerates
the kind of reliefs that a
consumer is entitled to from
the District Forums. As per
the available data in 85.2
percent of the cases the
District Forums have
awarded compensation
which even included punitive
damages in some cases. In
6.1 percent of the cases they
have asked to discontinue unfair trade practice and in 5.6 percent of the cases the District
Forums have ordered the withdrawal of hazardous goods and in about 3.0 percent of the
cases the District Forum have ordered the issue of corrective advertisements. Therefore,
awarding compensation/damages is the major kind of relief granted by the District Forums
(Table 3.41).
Table 3.41
Kind of Reliefs Granted by District Forums
States Kinds of Reliefs
Compensation /Punitive Damages
Discontinue UTP/RTP
Withdrawal of
Hazardous Goods
Issue Corrective Advertisements
Gujarat 100.0 0.0 0.0 0.0
Karnataka 70.6 16.3 6.3 6.9
Odisha 73.0 15.8 6.8 4.4
Tripura 0.0 0.0 0.0 0.0
U.P 92.0 0.8 5.1 2.1
Total 85.2 6.1 5.6 3.0 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
113
3.24 Staffing Pattern of District Forum
The common complaint of the District Forums is that they do not have adequate staff
to manage the District Forum. The survey data reveals that 11.8 percent of the District
Forums have less than 3 staff / members to handle their work. 74.5 percent have staff
between 4-5 while 13.7 percent have staff between 6-7 members. Very few have more than
7 staff to manage the District Forum (Table 3.42).
Table 3.42
Staff Strength in DCDRFs
States
No. of Staff
Less than 3 4 to 5 6 to 7
Gujarat 0 91.6 8.4
Karnataka 0 69 31
Odisha 0 92.9 7.1
Tripura 33.3 66.7 0
U.P 23.1 69.2 7.7
Total 11.8 74.5 13.7 Source: Field Survey, Centre for Consumer Studies, IIPA
Most of the employees are permanent and on deputation from other government
departments. 92.1 percent of the employees are permanent while 5.4 percent of the
employees are on contract and 2.5 percent of them are on daily wages. During discussion
the members of the District Forums were of the view that they should be provided with
adequate staff to manage the affairs of the District Forums and that there should be a
separate cadre of staff for District Forums, as the staff on deputation is not trained to handle
judicial work and by the time they are trained and get acquainted to the work they are
transferred and the posting of the new employee takes a long time (Table 3.43).
Table 3.43
Nature of Employment
States Type of Post
Permanent Contract Daily wage
Gujarat 81.7 18.3 0.0
Karnataka 99.4 0.6 0.0
Odisha 98.1 1.9 0.0
Tripura 100.0 0.0 0.0
U.P 88.3 6.3 5.4
Total 92.1 5.4 2.5 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
114
The present staff strength of the District Forum seems to be inadequate as per the
data obtained from the District Forums. 80.7 percent of the District Forums opined that the
staff strength is inadequate. This was also visible during the field visits (Table 3.44).
Table 3.44 Adequacy of Present Staff Strength in DCDRFs
States
Response
Yes No
Gujarat 16.7 83.3
Karnataka 24.1 75.9
Odisha 35.7 64.3
Tripura 0 100
U.P 20.2 79.8
Total 19.3 80.7 Source: Field Survey, Centre for Consumer Studies, IIPA
The next question of enquiry was as to what would be the ideal staff strength? 30.2
percent of the respondents of the District Forums said that a minimum of six employees
should be given to each District Forum. However, 47.9 percent of them said that the staff
strength should be between 6-9 employees, while 21.9 percent were of the view that the
staff strength should be between 9-12 employees. There is no doubt that with the increase in
the work of the District Forums there is a need to rationalize the staff strength. The present
strength of the staff is inadequate and within the state there is variation in the staff strength
of the District Forums (Table 3.45).
Table 3.45 Number of Staff Required in DCDRFs (Out of DCFs those having inadequate staff)
States
No. of staff
Minimum 6 6-9 9-12
Gujarat 30.0 50.0 20.0
Karnataka 18.2 54.6 27.2
Odisha 22.2 44.4 33.4
Tripura 0.0 33.3 66.7
U.P 44.8 44.8 10.4
Total 30.2 47.9 21.9 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
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Section III: Working of State Commissions
3.25 Structure, Powers and Functions
The Consumer Protection Act provides for establishment of the State Consumer
Disputes Redressal Commission in each state headed by a retired High Court Judge.
Besides him there are not less than two and not more than such number of other Members,
as may be prescribed and one shall be a woman. Every member of the State Commission
shall hold office for a period of
five years or upto 67 years
whichever is earlier. The
President and Members of the
State Commission are also
entitled to reappointment for
another term of five years or upto
the age of 67 years. The State
Commission has jurisdiction to
entertain complaints where the
value of the goods or services
and compensation, if any,
claimed exceeds rupees twenty
lakhs but does not exceed rupees one crore. It also has appellate jurisdiction and appeals
against the orders of any District Forum within the State are filed in State Commission. The
provisions of Sections 12, 13 and 14 and the Rules made thereunder for the disposal of
complaints by the District Forum shall, with such modifications as may be necessary, be
applicable to the disposal of disputes by the State Commission.
The State Commission shall ordinarily function in the State Capital but may perform
its functions at such other place as the State Government may, in consultation with the State
Commission, notify in the Official Gazette, from time to time. As on 18.9.2012 so far in all the
State Commissions 581102 cases have been filed, out of which 485156 cases have been
disposed of with a pendency of 95946 cases. The percentage of total disposal comes to
83.49 percent. However, very few of these complaints/ appeals are disposed within the
prescribed time limit. The table below gives the statement of cases filed, disposed of and
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116
pending. In Uttar Pradesh the highest number of cases is pending but no efforts are being
made to dispose them.
Table 3.46 Statement of Cases Filed / Disposed of / Pending in State Commissions
State Cases filed
since inception
Cases disposed of since
inception
Cases Pending
% of Disposal
As on
Gujarat 41760 34582 7178 82.81, 39.27 (within time limit)
30.06.2012
Karnataka 43514 39121 4393 89.90 31.07.2012
Odisha 21265 15338 5927 72.13 30.06.2012
Tripura 1398 1376 22 98.43 31.08.2012
UP 64884 37037 27847 57.08 31.05.2012
Source: Concerned office of SCDRCs
The Act prescribes the qualification and age for the Members of the State
Commission. The person to be member should not be less than thirty five years of age,
possess a bachelor‘s degree from recognised university and be a person of ability, integrity
and standing, and have adequate knowledge and experience of atleast ten years in dealing
with problems relating to economics, law, commerce, accountancy, industry, public affairs or
administration. The members are drawn from various sectors having varied experience and
ability. The minimum age for the members has been prescribed as 35 years.
At present there are 35 State Commissions and most of them have their own
building. Among the states under study all of them except Karnataka have their own building
with adequate infrastructure to discharge their functions. The Karnataka State Commission
is housed in a rented building lacking basic facilities. It is totally inadequate.
The views of the President and the Members of the State Commissions of the five
states under study were taken and are presented in a table form. Apart from this letters were
written to all the Presidents of the State Commissions requesting them to send their views
on various issues relating to the Consumer Protection Act and the working of the redressal
agencies. However, only Presidents of the State Commissions from Goa, Chandigarh (UT),
Karnataka and Himachal Pradesh responded to our request.
Centre for Consumer Studies, IIPA
117
Table No 3.47 Infrastructure Available in SCDRCs
Nam
e o
f S
tate
Bu
ild
ing
Off
ice
Sp
ace
Av
aila
ble
Ma
np
ow
er/
Sta
ff
An
nu
al
Bu
dg
et
Sta
ff C
ar/
Ve
hic
le
Ph
oto
sta
t M
ach
ine
Te
lep
ho
ne
Fa
x
Co
mp
ute
r &
Pri
nte
r
Inte
rne
t F
ac
ilit
y
Fu
rnit
ure
(ta
ble
, C
ha
ir
etc
.)
No
. o
f T
yp
ew
rite
r
1 2 3 4 5 6 7 8 9 10 11 12
Gujarat Owned Sufficient Sufficient Sufficient Available Available Available Available Available Available Sufficient Insufficient
Karnataka Rented Insufficient Insufficient Insufficient Available Available Available Available Available Available Sufficient Sufficient
Odisha Owned Sufficient Insufficient Sufficient Available Available Available Available Available Available Sufficient Sufficient
Tripura Govt. Accumadation
Sufficient Insufficient Insufficient N.A. Available Available Available Available Available Sufficient Sufficient
U.P Owned Sufficient Insufficient Sufficient Available Available Available Available Available Available Sufficient Sufficient
Source: Source: Field Survey, Centre for Consumer Studies, IIPA
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Presidents and Members‟ Response of SCDRC of Five States (Gujarat, Karnataka, Odisha, Tripura and Uttar Pradesh)
3.26 Number of Respondents
Table 3.48 Number of Presidents and Members Interviewed from SCDRCs
States Member President Total
Gujarat 4 1 5
Karnataka 1 1 2
Odisha 1 0 1
Tripura 1 1 2
U.P 1 0 1
Total 8 3 11 Source: Field Survey, Centre for Consumer Studies, IIPA
3.27 Perception of Presidents and Members on the Working of SCDRCs
Table 3.49
Perception of Presidents and Members on Working of SCDRCs
Kind of Problems faced by Commission while Handling Cases Yes No
Shortage of Members 36.4 63.6
Lack of Judicial Knowledge 27.3 72.7
Lack of Supportive Staffs 54.5 45.5
Lack of Infrastructure 54.5 45.5
Lack of Fund for day to day Miscellaneous Expenses 54.5 45.5
Problems in Laboratory Testing 18.2 81.8
Non-cooperation from Complainant or Opposition Party 9.1 90.9
Shortage of Stationary 18.2 81.8 Source: Field Survey, Centre for Consumer Studies, IIPA
Table 3.50
Functioning of the SCDRCs
Functioning of SCDRC Yes No
Are complaints/appeals disposed of within the stipulated time 36.4 63.6
If no, What are the Reasons for the Delay in Disposal
Non cooperation by Advocates 81.8 18.2
Asking for undue Adjournments 27.3 72.7
Disinterested Consumers 9.1 90.9
Technical Proceedings 100.0 0.0
Lack of product Testing Facilities 100.0 0.0
Problems in the Execution of the Orders of State Commission 90.9 9.1 Source: Field Survey, Centre for Consumer Studies, IIPA
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Table 3.51 Why Consumers do not File Complaints
Reasons why Consumers are Discouraged to File Complaints Yes No
High Cost of Litigation 81.8 18.2
Delay in Disposal 72.7 27.3
Complicated Procedure 54.5 45.5
Small Compensation Amount 81.8 18.2
Lack of Awareness 63.6 36.4
Casual Attitude 81.8 18.2 Source: Field Survey, Centre for Consumer Studies, IIPA
Table 3.52
Involvement of Lawyers in the SCDRCs Opinion on Involvement of Lawyers Yes No
Lawyers help in Dispensation of Justice 81.8 18.2
Lawyers Prolong the Cases on Grounds other than Merit 54.5 45.5
Involvement of Lawyers has made Proceedings too Technical and Difficult for the
Consumers to Understand 24.6 75.4
Source: Field Survey, Centre for Consumer Studies, IIPA
Table 3.53 Computerisation of SCDRCs
Opinion on Computerization of SCDRC Yes No
Aware about CONFONET Project 90.9 9.1
Computerization of SCDRCs and DFs helps in Better Data Management 100.0 0.0
Status of the Complaint Filed/Disposed/Judgment Uploaded on the Daily Basis under the CONFONET Project 90.9 9.1
Are there Full Time Staff to Upload the Data 27.3 72.7
Main Problem in Computerization
No Data Entry Operator 72.7 27.3
Poor internet connectivity 45.5 54.5
Inadequate Infrastructure 72.7 27.3
Poor Management of Manual Records 36.4 63.6
Lack of Computer Education 45.5 54.5 Source: Field Survey, Centre for Consumer Studies, IIPA
Table 3.54 Extent of Support from the State Government
Cooperation between SCDRC and State Government Yes No
Does the SCDRC get Adequate Cooperation and Help from State Government 54.5 45.5
Does the SCDRC get Adequate Financial Help from State Government 54.5 45.5
Does SCDRC Organise Induction/Orientation Training Programme for the
Presidents/Members of DCDRFs 27.3 72.7
Has SCDRC taken up Consumer Education and Awareness Programme 36.4 63.6
Has specific Budget for Organizing Consumer Education and Awareness
Programme 27.3 72.7
Source: Field Survey, Centre for Consumer Studies, IIPA
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Table 3.55 Level of Satisfaction with the Powers under CP Act
Satisfaction with Powers under the CP Act, 1986 Yes No
Are you satisfied with the Power Vested in the State Commission under CP Act 36.4 63.6
Is the Introduction of ADR Mechanism Helpful 72.7 27.3
Do you think any Financial Autonomy/Power with Separate Budget should be
provided by State Government 75.0 25.0
Source: Field Survey, Centre for Consumer Studies, IIPA
3.28 Infrastructure and Other Aspects
Table 3.56 Status of Infrastructure in SCDRCs
Particulars State Consumer Disputes Redressal Commissions
Gujarat Karnataka Odisha Tripura U.P
Building 1 2 1 2 1
Furniture 1 1 1 1 1
Library 1 1 1 1 1
Vehicle 1 1 1 2 1 Source: Field Survey, Centre for Consumer Studies, IIPA
Note- 1=Own, 2= on rent
Table 3.57
Status of ICT Facilities in SCDRCs (1=Own, 2= on rent)
Particulars State Consumer Disputes Redressal Commissions
Gujarat Karnataka Odisha Tripura U.P
Computer Hardware 1 1 1 1 1
Internet 1 1 1 1 1
Fax Machine 1 1 1 1 1
Photocopier 1 1 1 1 1 Source: Field Survey, Centre for Consumer Studies, IIPA
Table 3.58 Area wise Cases being Filed in SCDRCs
SCDRC Rural Urban
Gujarat 80595 122718
Karnataka NA NA
Odisha NA NA
Tripura NA NA
U.P NA NA Source: Concerned SCDRC office
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Table 3.59 Classification of Cases of Last Two Years (2010-12)
Sectors
State Consumer Disputes Redressal Commissions (in %)
Gujarat U.P Tripura Karnataka G.Total
Defective Goods 0.0 0.7 7.8 3.5 3.0
Electricity 0.9 11.9 0.7 5.6 4.8
Insurance 84.5 26.3 38.6 51.8 50.3
Housing 0.7 10.7 0.0 15.1 6.6
Banking 3.1 27.7 7.8 6.2 11.2
Medical Negligence 1.2 4.9 2.0 3.0 2.8
Transport 0.1 0.6 0.0 2.6 0.8
Telecommunications 0.4 0.7 5.9 5.3 3.1
UTP/RTP 0.0 0.0 0.0 0.0 0.0
Hazardous Goods 0.0 0.0 0.0 0.0 0.0
Railway 0.0 0.0 0.0 1.3 0.3
Airlines 0.0 0.0 2.6 1.5 1.0
Postal 0.0 0.0 0.0 2.1 0.5
Education 0.0 0.0 0.0 2.1 0.5
Misleading Advertisements 0.0 0.0 0.0 0.0 0.0
Any others 9.0 16.5 34.6 0.0 15.0 Source: Concerned SCDRC office
Table 3.60 Year Wise Case Status in SCDRCs
2012 2011 2010 2009 2008 2007
Forums
Dis
po
sal
rate
Pen
din
g
Case
s
Dis
po
sal
rate
Pen
din
g
Case
s
Dis
po
sal
rate
Pen
din
g
Case
s
Dis
po
sal
rate
Pen
din
g
Case
s
Dis
po
sal
rate
Pen
din
g
Case
s
Dis
po
sal
rate
Pen
din
g
Case
s
Gujarat 88.4 11.6 86.9 13.1 85.8 14.2 81.9 18.1 71.6 28.4 63.1 36.9
Karnataka 88.8 11.2 91.3 8.7 93.3 6.7 98.1 1.9 98.6 1.4 122.7 0.0
Odisha 70.6 29.4 68.2 31.8 62.2 37.8 60.1 39.9 51.1 48.9 14.4 85.6
Tripura 96.8 3.2 98.7 1.3 98.3 1.7 98.9 1.1 177.9 0.0 96.5 3.5
U.P 55.7 44.3 51.7 48.3 42.0 58.0 40.1 59.9 126.0 0.0 103.5 0.0
India 83.4 16.6 80.7 19.3 78.2 21.8 75.9 24.1 100.1 0.0 88.6 11.4 Source: National Consumer Disputes Redressal Commission
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Section IV: Working of National Commission
3.29 Structure, Powers and Functions of NCDRC
The Consumer Protection Act empowers the Central Government to establish a
National Consumer Disputes Redressal Commission. National Consumer Disputes
Redressal Commission (NCDRC) was constituted in 1988 and is headed by a retired Judge
of the Supreme Court of India
and ten other members. In order
to attain the objects of the
Consumer Protection Act, the
National Commission has also
been conferred with the powers
of administrative control over all
the State Commissions by calling
for periodical returns regarding
the institution, disposal and
pendency of cases. It is
empowered to issue instructions
regarding: (1) adoption of uniform procedure in the hearing of the matters; (2) prior service of
copies of documents produced by one party to the opposite parties; (3) speedy grant of
copies of documents; and (4) generally over-seeing the functioning of the State
Commissions or the District Forums to ensure that the objects and purposes of the Act are
best served without in any way interfering with their quasi-judicial freedom.
Subject to the other provisions of this Act, the National Commission shall have jurisdiction to:
Entertain complaints where the value of the goods or services and compensation, if
any, claimed exceeds rupees one crore;
Entertain appeals against the orders of any State Commission; and
Call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.
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The jurisdiction, powers and authority of the National Commission may be exercised
by Benches thereof. A Bench may be constituted by the President with one or more
members as the President may deem fit. At present there are six benches but only five have
been constitute and only three are functional due to shortage of members.
Powers of the National Commission
The National Commission has the same powers and adopts the same procedures as
the District Forums or the State Commissions.
Besides, it also has the power to set aside complaints, giving ex parte orders passed
by National Commission, review its own orders and call for records.
The National Commission can also make such modifications, in its procedure as it
considers necessary.
In case, if the complainant or the opposite party is dissatisfied with the order of the National
Commission, s/he can file an appeal.
An appeal against the decision of the National Commission lies before the Supreme Court of India.
An appeal can be filed within thirty days from the date the order in question has been passed by the Commission.
In case, the appeal is filed after thirty days the applicant has to satisfy the court that there were sufficient reason for delay in filing such appeal.
However, before filing such appeal, the appellant, if required to pay any amount to the
other party, in accordance with the said order, has to deposit 50 percent of that amount or
rupees fifty thousands, whichever is less.
3.30 Role of NCDRC in Development of Consumer Jurisprudence
The NCDRC has played a key role in the development to consumer jurisprudence. It
has entertained a variety of cases and expanded the scope of the Consumer Protection Act
to provide relief to the consumers. With an unrelenting consumerism throwing up varied
cases of manipulations aimed at fleecing citizens, the consumer courts enhanced their
proactive role to protect people, often by even enlarging the ambit of consumer protection
law. Imparting liberal interpretation to various provisions of the Consumer Protection Act, the
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consumer courts, ranging from those at district level to the National Consumer Disputes
Redressal Commission, sought to effectively curb various forms of unfair monopolistic and
deceptive trade practices, prevalent in the country. While the Railways Act limits the
government's liability of passengers' losses only over the booked baggage, the NCDRC
made Indian Railways pay a compensation of ` 50,000 to a passenger, who had lost his
baggage during travel. Quoting Railway Act provisions, the NCDRC ruled that while state-
run monolith cannot be held liable for loss of unbooked baggage of the passengers, it can
certainly be taken to task for its failure to handle efficiently and proactively the complaints of
the passenger, who lost his baggage.
In yet another ruling, it called the bluff of educational institutions forfeiting the entire
fee of students, cancelling their admission to migrate to other institutions. Acting on a
complaint by a student that Ferozpur-based College of Engineering and Technology, had
forfeited his entire fee for withdrawing his admission, the NCDRC held the act of the college
as illegal and ordered it to refund major chunk of the fee after retaining its nominal
administrative and processing charges.
It also took note of the growing dubious practices of doctors either putting up
misleading advertisements to treat incurable diseases or making false claims about their
educational and professional qualifications to lure gullible patients and unequivocally
censured such practices. Upset by a case of a Kerala doctor luring patients with
"misleading" claims to treat incurable cancer, the NCDRC held that such assurances amount
to rendering deficient service and asked erring doctors to pay ` one lakh as compensation to
a person for misguiding him on his son's cancer treatment, eventually leading to the
youngster's death.
In another case, it imposed a fine of ` 2.5 lakh on a Meerut-based doctor for
misleading patients through his false claims about his professional qualifications and held
that such physicians are liable to be prosecuted for rendering deficient service. Claiming that
he was a master in surgery, this doctor had operated upon a local, permanently damaging
one of his kidneys. Later it transpired that he was merely an MBBS.
In another case, the NCDRC gave a ruling, asking various airlines to be extra-vigilant
and little more careful while handling their passengers, especially senior citizens. The
NCDRC gave this ruling while ordering Dutch airliner KLM to pay a compensation of `
Centre for Consumer Studies, IIPA
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50,000 to a senior Indian citizen for subjecting him to "a host of hassles" during his flight to
Seattle from Delhi in 2006. In yet another ruling, the consumer court sought to enforce the
concept of market value of a property, contrary to its official run-down value that the
government often takes for determining the worth of pieces of land to acquire them under
the Land Acquisition Act.
In another ruling, the NCDRC took note of cases of banks often demanding more
than their actual dues from their borrowers despite the latter having settled their loans and
ruled it to be "an unfair trade practice". The NCDRC held that the banks which demand
money despite having received full and final amount of the loan from the borrowers is an
"unfair trade practice" and are liable to be prosecuted for rendering deficient services. The
NCDRC gave the ruling while directing banking major HSBC to pay damages to one of its
borrowers for harassing him and trying to extract more than what was due to it. In it‘s
another significant ruling the NCDRC held that an insurance policy-holder cannot be denied
compensation merely because his vehicle had some passengers beyond its seating capacity
at the time of the accident. And in another ruling it held that a prior agreement between two
parties to have their disputes resolved through arbitration does not bar them from seeking
redressal of their grievances under the Consumer Protection Act. There are several other
rulings of the NCDRC which aimed at expanding the ambit of the Consumer Protection
Act.35
3.31 Circuit Benches
The Consumer Protection Act stipulates that the National Commission shall ordinarily
function at New Delhi and perform its functions at such other places as the Central
Government may, in consultation with the National Commission notify. The Central
Government has notified that the National Commission shall perform its functions at the
following places other than New Delhi.
1. Ahmedabad 2. Allahabad 3. Bengaluru 4. Bhopal 5. Chennai 6. Hyderabad 7. Jodhpur 8. Kolkata 9. Lucknow 10. Nagpur 11. Pune
35
Source: DNA, Dec. 31, 2010
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The Circuit benches have been meeting since 2005 at different locations and taking
up original petitions, first appeals and revision petitions. Table 3.61 indicates the places of
circuit benches and the complaints taken up. In 2005 a total of 147 cases were taken up,
144 in 2006, 526 in 2007, 98 in 2008, 74 in 2009, 84 in 2010, 63 in 2011 and 73 in 2012
held at Bhopal. Till date a total of 1209 cases have been taken up by the Circuit Benches
held at different locations out of which 23 are original petitions, 175 first appeals and 1011
are revision petitions.
Table 3.61 National Consumer Disputes Redressal Commission Circuit Benches – 2005 to 2012
(Disposal of Cases)
Year/NCDRC Circuit Bench
OP FA RP TOTAL REST EP MISC
2005 2 46 99 147
Hydrabad (Andhra Pradesh)
2006 2 36 106 144 4
Bangalore (Karnataka) 09/01/2006- 03/02/2006
2007 9 25 492 526
Chennai (Tamil Nadu) 02/01/2007 to 02/02/2007
2008 1 22 75 98 1
Pune (Maharashtra) 01/01/2008/ To 01/02/2008
2009 8 11 55 74 1 2
Ernakulam (Kerala) 23/03/2009 To 15/04/2009
2010 0 26 58 84 2
Kolkata (West Bengal) 11/01/2010 To 05/02/2010
2011 1 9 53 63 6
Ahmedabad (Gujarat) 07/21/2011 To 04/03/2011
2012 0 0 73 73
Bhopal (Madhya Pradesh) 30/01/2012 To 10/02/2012
Total 23 175 1011 1209 9 6 Source: Office of National Consumer Disputes Redressal Commission
Table 3.62 National Consumer Disputes Redressal Commission as on November, 2012
OP FA RP TOTAL TA
Court no. 1 0 73 80 153
Court no. 2 3 0 55 58
Court no. 3 0 0 88 88
Court no. 4 14 0 90 104
Court no. 5 1 3 51 55
Total 18 76 364 458
Pending from the previous month 1182 1878 7097 10157
Registered during the month 23 62 407 492 0
Cases restored 0 9 30 39 0
Disposed of during the month 18 76 364 458 0
Pending at the end of the month 1187 1873 7170 10230 Source: Office of National Consumer Disputes Redressal Commission
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Table 3.63 Year wise Status of Cases in NCDRC
Years Disposed of Pending as on 31.07.2012
1988-1993 100.0 0.0
1994 99.3 0.7
1995 99.0 1.0
1996 99.3 0.7
1997 99.7 0.3
1998 97.7 2.3
1999 94.7 5.3
2000 91.0 9.0
2001 91.5 8.5
2002 80.4 19.6
2003 70.9 29.1
2004 61.5 38.5
2005 58.6 41.4
2006 37.6 62.4
2007 47.3 52.7
2008 87.2 12.8
2009 54.4 45.6
2010 53.5 46.5
2011 34.3 65.7
2012 21.5 78.5
Total 80.3 19.7
Original Petitions(A) 80.3 19.7
First Appeals(B) 84.9 15.1
Revision Petitions (C) 87.4 12.6
Grand Total ( A+B+C) 86.5 13.5 Source: Office of National Consumer Disputes Redressal Commission
A large number of cases are being filed in the NCDRC. In November 2012 alone a
total of 492 cases were filed in the NCDRC. Out of which 23 were original petitions, 62 first
appeals and 407 revision petitions. (Table 3.62)
Moreover, in the NCDRC till November 2012 a total of 78471 cases have been filed
while 68241 have been disposed of so far and 10230 cases are pending. The pendency is
increasing as only three benches out of the six are functioning as the members have not
been appointed so five posts of members are vacant at present. The sixth bench was never
constituted. Out of the total cases filed 16045 are original petitions, 12890 are first appeals
and 59536 are review petitions. Tables 3.64, 3.65 & 3.66 give the state of the original
petitions, first appeals and review petitions filed in the NCDRC from 1988 to November
2012.
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Table 3.64 Statement of Original Petition Cases in National Consumer Disputes Redressal Commission (as on 30th November, 2012)
Source: Office of National Consumer Disputes Redressal Commission
A (Original Petitions) YEAR
Pending as on
31.10.2012
Instituted during Nov, 2012
Restored during
November, 2012
Total Disposed of during
November, 2012
Pending as on 30.11.2012
Total filed
Disposed Pending as on
30.11.2012
1988-1993 0 0 0 0 0 0 863 863 0
1994 2 0 0 2 1 1 300 299 1
1995 0 0 0 0 0 0 208 208 0
1996 2 0 0 2 1 1 300 299 1
1997 0 0 0 0 0 0 304 304 0
1998 7 0 0 7 2 5 300 295 2
1999 22 0 0 22 3 19 375 356 19
2000 33 0 0 33 1 32 443 411 32
2001 34 0 0 34 1 33 410 377 33
2002 90 0 0 90 1 89 489 400 89
2003 56 0 0 56 0 56 203 147 56
2004 38 0 0 38 1 37 104 67 37
2005 48 0 0 48 0 48 116 68 45
2006 142 0 0 142 0 142 229 87 142
2007 69 0 0 69 0 69 131 62 69
2008 23 0 0 23 0 23 179 156 23
2009 95 0 0 95 0 95 217 122 95
2010 117 0 0 117 0 117 260 143 117
2011 190 0 0 190 0 190 300 110 190
2012 214 23 0 237 7 230 314 84 230
TOTAL 1182 23 0 1205 18 1187 6045 4858 1187
Original Petitions (A) 1182 23 0 1205 18 1187 6045 4858 1187
First Appeals (B) 1878 62 9 1949 76 1873 12890 11017 1873
Revision Petitions (C) 7097 407 30 7534 364 7170 59536 52366 7170 Grand Total (A+B+C) 10157 492 39 10688 458 10230 78471 68241 10230
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Table 3.65 Statement of First Appeal Cases in National Consumer Disputes Redressal Commission (As On 30th November, 2012)
Source: Office of National Consumer Disputes Redressal Commission
Year Pending as on
31.10.2012
Instituted during
November, 2012
Restored during
November, 2012
Total Disposed of during
November, 2012
Pending at the end of the
month i.e 30.11.2012
Total filed
Disposed of so far
Pending as on
30.11.2012
Upto 1996 0 0 0 0 0 0 3920 3920 0
1997 16 0 0 16 6 10 565 555 10
1998 1 0 0 1 0 1 387 386 1
1999 0 0 0 0 0 0 486 486 0
2000 0 0 0 0 0 0 322 322 0
2001 0 0 0 0 0 0 401 401 0
2002 0 0 0 0 0 0 565 565 0
2003 5 0 0 5 0 5 862 857 5
2004 5 0 0 5 0 5 502 497 5
2005 9 0 0 9 1 8 539 531 8
2006 104 0 0 104 5 99 789 690 99
2007 215 0 3 218 19 199 792 593 199
2008 209 0 0 209 0 209 543 334 209
2009 202 0 0 202 0 202 485 283 202
2010 205 0 0 205 1 204 451 247 204
2011 358 0 2 360 7 353 545 192 353
2012 549 62 4 615 37 578 736 158 578
Total 1878 62 9 1949 76 1873 12890 11017 1873
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Table 3.66
Statement of Revision Petition Cases in National Consumer Disputes Redressal Commission (As on 30th November, 2012)
Source: Office of National Consumer Disputes Redressal Commission
C (Revision Petitions) YEAR
Pending as on
31.10.2012
Instituted during
November, 2012
Restored during
November, 2012
Total Disposed of during
November, 2012
Pending at the end of the
month i.e 30.11.2012
Total filed
Disposed of so
far
Pending as on
30.11.2012
1988-1996 0 0 0 0 0 0 5096 5096 0
1997 2 0 0 2 2 0 1500 1500 0
1998 0 0 0 0 0 0 1344 1344 0
1999 0 0 0 0 0 0 2360 2360 0
2000 0 0 0 0 0 0 2282 2282 0
2001 0 0 0 0 0 0 2148 2148 0
2002 1 0 0 1 0 0 2917 2916 1
2003 0 0 0 0 0 0 3560 3560 0
2004 1 0 0 1 0 1 3440 3439 1
2005 2 0 0 2 0 2 3223 3221 2
2006 87 0 1 88 0 88 4065 3977 88
2007 233 0 1 234 3 231 4327 4096 231
2008 1050 0 1 1051 1 1050 5032 3982 1050
2009 552 0 1 553 4 549 4697 4148 549
2010 859 0 0 859 7 852 4733 3881 852
2011 1726 0 12 1738 61 1677 4254 2577 1677
2012 2584 407 14 3005 286 2719 4558 1839 2719
TOTAL 7097 407 30 7534 364 7170 59536 52366 7170
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3.32 Infrastructure and Manpower
The NCDRC has moved to a new complex with modern facilities unlike its Janpath
office which was inadequate and depleted. The infrastructure for the present seems to be
adequate with well furnished court rooms, office space and facilities for the Bar. At present it
has a total sanctioned manpower strength of 118 while 109 are filled up and 9 are vacant.
With the increasing workload of the NCDRC the manpower strength seems to be inadequate.
Over the years the work of the NCDRC will only increase. There is no doubt that the
manpower requirement has to be in accordance with the pendency of the cases and
quantum of work. At present the pendency is of 10230 cases which needs to be reduced.
The objective of the Act is to provide speedy and inexpensive justice to the consumers.
Delay in disposal of cases more so at the level of NCDRC sends a negative message to the
consumers. Therefore, there is a need to increase the strength of the staff in the NCDRC to
further strengthen it. As per the discussions with the NCDRC the following additional strength
is required.
Table 3.67 Status of Manpower in NCDRC
Sl.No. Name of the post Sanctioned Strength
Proposed Strength
Additional Strength sought for
1. Registrar 1 1 0
2. Joint Registrar 1 1 0
3. Deputy Registrar 1 1 0
4. Assistant Registrar 3 4 1
5. Sr. P.P.S. 0 1 1
6. P.P.S. 1 11 10
7. Section Officer 3 9 6
8. Accounts Officer 1 1 0
9. Court Master (S) / P.S. 18 14 4
10. Court Master (NS) 6 6 0
11. Computer Programme 1 1 0
12. Assistant 6 15 9
13. Personal Assistant 13 15 2
14. Librarian 0 1 1
15. Assistant Librarian 1 1 0
16. Accountant 1 2 1
17. Hindi Translator 1 1 0
18. U.D.C. 10 17 7
19. Steno ‗D‘ 1 5 4
20. Hindi Steno 1 1 0
21. L.D.C. (3 for protocol work) 8 42+3=45 37
22. Staff Car Driver 2 14 12
23. Jr. Library Attendant 1 2 1
24. M.T.S. 37 54 17
TOTAL 118 223 113
Source: Office of National Consumer Disputes Redressal Commission
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Table 3.68 Financial Implication Worked out by the NCDRC
Source: Office of National Consumer Disputes Redressal Commission
3.33 Impact and Effectiveness of Redressal Mechanism
With 1.2 billion consumers in the country, at district level since 1987 on an average
only 0.6 percent cases per day have been filed and 0.5 percent cases are disposed of per
day. The data itself speaks volume about the effectiveness of working of the redressal
agencies in the country.
Table 3.69 Filing of Cases/ Day before Consumer Redressal Mechanism since Inception (1987)
(Update on 18.09.2012)
Commissions/ Forums
Cases filed since
inception
Total no. of
days (till 18.09.2012)
Average no. of
cases filed per day
No. of Commissions/
Forums
Average No. cases
filed per day per
Commission/ Forum
NCDRC 76909 9030 9 1 8.5
SCDRC 581102 9030 64 34 1.9
DCDRF 3169197 9030 351 629 0.6
India 3827208 9030 424 664 0.6 Source: Calculated on the basis of data available with NCDRC
S. N
o.
Proposed Post
No
. o
f P
osts
Pay i
n B
an
d
Gra
de P
ay
To
tal
DA
65%
HR
A
TA
To
tal P
er
Mo
nth
An
nu
al
Fin
an
cia
l
Imp
licati
on
1. Assistant Registrar 1 18750 6600 25350 16478 7605 5280 54713 656556
2. Sr. P.P.S. 1 21900 7600 29500 19175 8850 5280 62805 753660
3. P.P.S. 10 18750 6600 25350 16478 7605 5280 54713 6565560
4. Section Officer 6 13350 4800 18150 11798 5445 2640 38033 2738376
5. CM(S) / P.S. 4 13350 4800 18150 11798 5445 2640 38033 1825584
6. Assistant 9 9300 4200 13500 8775 4050 2640 28965 3128220
7. Personal Assistant 2 9300 4200 13500 8775 4050 2640 28965 695160
8. Librarian 1 13350 4800 18150 11798 5445 2640 38033 456396
9. Accountant 1 9300 4200 13500 8775 4050 2640 28965 347580
10. U.D.C. 7 7510 2400 9910 6442 2973 2640 21965 1845060
11. Steno ‗D‘ 4 7510 2400 9910 6442 2973 2640 21965 1054320
12. L.D.C. 37 5830 1900 7730 5025 2319 990 16064 7132416
13. Staff Car Driver 12 5830 1900 7730 5025 2319 990 16064 2313216
14. Jr. Library Attendant 1 5830 1900 7730 5025 2319 990 16064 192768
15. M.T.S.(Peon) 17 5200 1800 7000 4550 2100 990 14640 2986560
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Table 3.70 Disposal of Cases/ Day by Consumer Redressal Mechanism since Inception (1987)
(Update on 18.09.2012) Commissions/ Forums
Cases disposed of
since inception
Total no. of
days (till 18.09.2012)
Average no. of
case disposed of
per day
No. of Commissions/
Forums
Case disposed of per day per
Commission/ Forums
NCDRC 66560 9030 7 1 7.4
SCDRC 485156 9030 54 34 1.6
DCDRF 2925782 9030 324 629 0.5
India 3477498 9030 385 664 0.5 Source: Calculated on the basis of data available with NCDRC
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CHAPTER IV
EFFECTIVENESS OF GRIEVANCE REDRESSAL MECHANISM (Perception of Complainants/ Appellants)
4.1 Introduction
Grievance Redressal Mechanism is part and parcel of the machinery of any
administration. No administration can claim to be accountable, responsive and user-friendly
unless it has established an effective and efficient grievance redressal mechanism. An
effective grievance redressal
mechanism provides a
framework for the citizens to
redress their grievances in a
timely and transparent
manner. However, for
grievance handling the
institutional mechanism
should have the capacity for
the resolution of the
complaints, adherence to
response time for grievance
resolution, accessibility and availability for lodging of complaints and more so the level of
awareness among the consumers about the existence of the grievance redressal
mechanism. The Consumer Protection Act provides for a three tier redressal mechanism at
the District, State and National levels with stipulated time frame for the disposal of the
complaints. The system should ensure that the redressal sought is just, fair and dispensed
within the time frame.
The right to be heard also includes the right to be assured that consumer interests
will receive due consideration at appropriate forum. The right to seek redressal includes right
to be protected from the unfair trade practices or unscrupulous exploitation of consumer.
This chapter analyses the responses of the Complainants / Appellants and measures the
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effectiveness of the redressal mechanism and its capacity to deliver speedy and inexpensive
justice to consumers.
4.2 General Background of the Complainants
The survey data reveals that 75.2 percent of the complainants are from urban areas
while 24.8 percent are from rural. This is more or less same at all the three levels of the
redressal mechanism. Of all the complainants male constitute 74.4 percent of them, and
25.6 are females (Table 4.1).
Table 4.1 Background of the Complainants
Forum Residence Sex
Rural Urban Male Female
DCDRF 25.6 74.4 68.9 31.1
SCDRC 23.1 76.9 87.7 12.3
NCDRC 23.1 76.9 76.9 23.1
Total 24.8 75.2 74.4 25.6 Source: Field Survey, Centre for Consumer Studies, IIPA
The educational status of the complainants reveals an interesting pattern. Nearly 41
percent of the complainants are graduates while 16.5 percent are post graduates. A total of
57.5 percent are graduates and post graduates indicating that the higher the education level
more people tend to file complaint.15.3 percent of the complainants have studied upto
intermediate level. Keeping in view the educational level of the complainants a correlation
between education and level of awareness about consumer rights can be established.
(Table 4.2)
Table 4.2 Educational Status of Complainants
Education Forums Total
DCDRF SCDRC NCDRC
No Schooling 6.7 1.5 0.0 5.0
Primary 6.1 4.6 7.7 5.8
Middle 4.9 1.5 15.4 4.5
High School 5.5 3.1 15.4 5.4
Intermediate 17.7 10.8 7.6 15.3
Graduation 39.6 47.7 23.1 40.9
PG 12.8 24.6 23.1 16.5
Ph.D. 0.6 3.1 0.0 1.2
Others 6.1 3.1 7.7 5.4 Source: Field Survey, Centre for Consumer Studies, IIPA
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As far as the occupation of the respondents is concerned, 28.5 percent are
professionals meaning engineers, doctors, lawyers, architects, CAs etc. Government
employees constitute 16.9 percent of all the complainants. 14.5 percent are from the
business community. (Table 4.3)
Table 4.3 Occupation of the Complainants
Occupation
Forums G. Total
DCDRF SCDRC NCDRC
Agriculture occupation 13.4 12.3 0 12.4
Traders/Manufacturers 9.1 27.7 15.4 14.5
Teachers 3.7 3.1 0 3.3
Professionals 37.2 3.1 46.2 28.5
Govt. Employees 14.6 20 30.8 16.9
Students 0.6 13.8 0 4.1
House wives 6.7 0 0 4.5
Others 14.7 20 7.6 15.8 Source: Field Survey, Centre for Consumer Studies, IIPA
The annual income of the complainants indicates a pattern. Generally the lower and
middle income groups are filing complaints nearly 40 percent of them are in the income
group of ` 1-5 lac. Similar is the case of the State Commissions where the cases go for an
appeal. But the income group of the complainants of the NCDRC indicates that more than
63 percent of the complainants are between ` 2-10 lakh category and 15 percent have an
annual income above `10 lakh. This also has to do with the fact that the amount of
compensation claimed in the NCDRC is above one crore. (Table 4.4)
Table 4.4
Annual Income of the Complainants
Annual Income (`) Forums
Total
DCDRF SCDRC NCDRC
Below 50000 31.7 10.8 7.7 24.8
50000 -100000 31.7 16.9 7.7 26.4
100000-200000 23.2 33.8 15.4 25.6
200000-500000 10.4 24.6 30.8 15.3
500000-1000000 2.4 9.2 23.1 5.4
Above 1000000 0.6 4.6 15.4 2.5 Source: Field Survey, Centre for Consumer Studies, IIPA
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4.3 Types of Cases Filed
An analysis of the nature of the complaints reveals that 88.8 percent of the
complaints relate to deficiency in services while only 11.2 percent of the complaints relate to
defects in goods/ products. The pattern is similar at all the three levels of the redressal
mechanism (Figure 4.1).
Figure 4.1
Source: Field Survey, Centre for Consumer Studies, IIPA
4.4 Adopted Other Mode of Redressal before Approaching the District Forum
Figure 4.2
Source: Field Survey, Centre for Consumer Studies, IIPA
The complainants were asked whether they had adopted any other mode of
complaint redressal before approaching the District Forums. Nearly 60.4 percent said that
they did not and filed the complaint directly in the District Forums. However, 39.6 percent
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said that they had tried their level best to redress their problem at the level of the supplier or
the marketer. Since they had no alternative they approached the District Forum. (Figure 4.2)
4.5 Source of Information about the District Forum
The next question of enquiry was as to how they came to know about the District
Forum. It appears that the media
campaign to raise the awareness
level of the consumers about their
rights is showing its impact. 27.3
percent of the respondents came to
know about the District Forum from
print and electronic media. 21.1
percent acquired the information
from family and friends. However,
the lawyers seem to be the
dependable ally as far as the quasi-judicial mechanism is concerned. 29.6 percent i.e. nearly
30 percent of the complainants came to know about the District Forum from the lawyers. In
fact during the discussions the complainants revealed that their best source of information
was the lawyer as the District Forums are also like the Courts. On the other hand 18.2
percent of the complainants came to know about the forums through the VCOs working in
the area (Table 4.5).
Table 4.5
Source of Information about the District Forum (Only for District Forum Complainants)
States Family Members/ Friends/Relatives / Neighbours/ Peer
Group
Print & Electronic
Media
Lawyers Members of VCOs/Consumer
Activists
Others
Gujarat 20.3 23.7 49.2 3.4 3.4
Karnataka 15.4 46.2 5.1 28.2 5.1
Odisha 7.1 11.9 28.6 52.4 0.0
Tripura 36.8 26.3 26.3 5.3 5.3
U.P 32.0 30.0 28.0 4.0 6.0
Total 21.1 27.3 29.6 18.2 3.8 Source: Field Survey, Centre for Consumer Studies, IIPA
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4.6 Mode of Filing the Complaint
As far as the mode of filing the complaint is concerned majority of the complainants
availed the services of the lawyers (77.7 percent). In fact as the structure of appeal goes
higher, the involvement of the lawyers also increases. 14.9 percent of the complainants filed
the complaint personally. However, during discussions they complained that the Forums/
Commissions give more weightage to the lawyers hence most of the complainants prefer to
hire the services of the lawyers (Table 4.6).
Table 4.6
Mode of Filing Complaints
Source: Field Survey, Centre for Consumer Studies, IIPA
4.7 Status of the Complaints
The pendency of the complaints seems to be quite high. 47.7 percent of the
complaints are pending and the pendency seems to be higher in the State Commissions
(60.0 percent). 38.6 percent of the complaints have been resolved. The pendency is
increasing in most of the states both at the level of the District Forums and the State
Commissions. Lack of timely appointment of the Presidents and the Members of the District
Forums and State Commissions is perhaps one of the major reasons for pendency apart
from others (Table 4.7).
Table 4.7 Status of Complaints
Forums Dismissed Admitted Pending Resolved
DCDRF 1.2 9.8 44.2 44.8
SCDRC 3.0 10.8 60.0 26.2
NCDRC 0.0 46.2 30.8 23.0
Total 1.7 12.0 47.7 38.6 Source: Field Survey, Centre for Consumer Studies, IIPA
Forum
Modes
Personally By Post Through VCO Through Lawyer
Others
DCDRF 16.5 1.2 5.5 75.0 1.8
SCDRC 12.3 1.5 1.5 81.5 3.2
NCDRC 7.7 0.0 0.0 92.3 0.0
Total 14.9 1.2 4.1 77.7 2.1
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4.8 Satisfaction with the Functioning of the Redressal Mechanism
The complainants are not satisfied with the functioning of the redressal mechanism.
The highest dissatisfaction is towards the District Forums where 74.2 percent of the
complainants are not satisfied. Overall 71.9 percent of the complainants/appellants are not
satisfied with the functioning of the redressal mechanism under Consumer Protection Act.
More complainants/appellants are satisfied with the functioning of NCDRC (38.1 percent)
(Figure 4.3).
Figure 4.3
Source: Field Survey, Centre for Consumer Studies, IIPA
A very high percentage of dissatisfaction with the redressal mechanism was needed
to be investigated further. The reasons cited for dissatisfaction are many. But majority of the
complainants indicated that there
was delay in disposal of the
complaint and it took many years
(44.1 percent). 18.6 percent of
them were not satisfied with the
amount of compensation awarded.
A large percentage of the
complainants were of the view that
their case was not heard properly
in the District Forum and the State Commission. In fact 6.8 percent of the respondents said
that the order of the District Forum has so far not been executed and 5.1 percent also said
that the District Forum was biased in favour of the opponent who happens to be a
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businessman or a service provider. 8.5 percent said that the cost involved and money spent
in litigation was quite higher as compared to the compensation awarded (Table 4.8).
Table 4.8 Reasons for Dissatisfaction with the Redressal Mechanism
Forums
Reasons
Delayed Decision
Less Compensation
Awarded
Case Not Heard
Properly
Orders not
Executed
Forum Biased in favour of opponent
Cost & Money
Spent in Litigation
DCDRF 30.8 17.9 20.5 10.3 7.7 12.8
SCDRC 62.5 25.0 12.5 0.0 0.0 0.0
NCDRC 75.0 16.7 8.3 0.0 0.0 0.0
Total 44.1 18.6 16.9 6.8 5.1 8.5 Source: Field Survey, Centre for Consumer Studies, IIPA
The three tier redressal mechanism is supposed to follow simple procedures not only
in filing the complaints but also in the disposal of the complaints. But over the time the
procedure has become too judicial and technical and the consumers find it difficult to
comprehend. The complainants are not satisfied with the procedures adopted by the Forums
and Commissions. There is higher dissatisfaction with the procedure being followed by the
District Forums and the State Commissions as 62.2 percent and 60.0 percent respectively
are not satisfied with the same. However, the satisfaction level is higher with the procedures
adopted by the National Commission (76.9 percent). During discussions the complainants
revealed that the people in the District Forums are arrogant and not helpful. The record
management and information sharing is also inadequate. The National Commission follows
a more professional approach because of the quality of its Members who are men of
experience and expertise (Figure 4.4).
Figure 4.4
Source: Field Survey, Centre for Consumer Studies, IIPA
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4.9 Follow Prescribed Time Limits for Procedures
The delay appears to be in every process at the level of the District Forum. 15.7
percent of the respondents are of the opinion that the problem of delay starts at the stage of
admission of the complaint. Most of the complainants (34.8 percent) opined that the notice is
not issued in time hence the delay in the commencement of the hearing. 29.9 percent of the
complainants are of the view that the time limit for the commencement of the hearing is not
adhered to. 34.1 percent of the complainants say that the disposal of the complaint is not
taking place as per the time limit prescribed under the Consumer Protection Act i.e. three
months and five months if product testing is required (Table 4.9).
Table 4.9
Following Prescribed Time Limit (Only for DF Complainant)
DCDRF Procedure of DCDRF
Admission of
Complaint
Issue of Notice
Commencement of Hearing
Disposal of
Complaint
Compliance of the Order
Gujarat 35.9 73.5 67.6 73.5 29.4
Karnataka 40.0 57.1 48.6 57.1 0.0
Odisha 0.0 2.4 2.4 2.4 0.0
Tripura 0.0 18.8 12.5 18.8 6.3
U.P 2.7 21.6 16.2 18.9 2.7
Total 15.7 34.8 29.9 34.1 7.3 Source: Field Survey, Centre for Consumer Studies, IIPA
4.10 Satisfaction with the Progress of the Complaint
The complainants don‘t seem to be satisfied with the progress of their complaints in
the Forums/Commissions. Only around 30 percent are satisfied with the progress. The
satisfaction level is higher with the NCDRC (46.2 percent) and lowest with the District
Forums (26.8 percent). However, of the complainants, who are satisfied, only 43 percent are
fully satisfied and 57 percent are only satisfied to some extent (Table 4.10).
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Table 4.10 Satisfaction with the Progress of Complaint
Forums Satisfaction with the Progress of Case
If Yes, then Level of Satisfaction
Yes No Fully Satisfied Satisfied to Some Extent
DCDRF 26.8 73.2 38.3 61.7
SCDRC 33.8 66.2 51.9 48.1
NCDRC 46.2 53.8 57.1 42.9
Total 29.8 70.2 43.0 57.0 Source: Field Survey, Centre for Consumer Studies, IIPA
4.11 Appeal filed in Higher Commission
The State Commissions are located at the State Capital and the National
Commission at Delhi. Even though they have the power to constitute circuit benches but the
distance has been a major hindrance as far as access to justice is concerned. The
complainants of the District Forums and the State Commissions were asked whether they
would like to file an appeal at a higher level in case of dissatisfaction, from District Forum to
State Commission and from State Commission to National Commission. A negligible number
of 9.8 percent of the complainants said that they would like to file appeal in the State
Commission against the order of the District Forum and only 6.1 percent of the
complainants/ appellants before the State Commission said that they would like to file
appeal/ revision in the National Commission against the order of the State Commission.
During the interactions many of the complainants said that it will cost both time and money
to appeal against the orders of the District Forum and the State Commission. Therefore,
they would not like to pursue the complaint any further (Table 4.11).
Table 4.11
Appeal Filed in Higher Commission (Response of Complainants of DCDRFs/State Commissions)
State
Filed Appeal in SCDRC Filed Appeal in NCDRC
Yes No Yes No
Gujarat 11.8 88.2 0.0 100.0
Karnataka 17.1 82.9 5.7 94.3
Odisha 7.1 92.9 14.3 85.7
Tripura 0.0 100.0 0.0 100.0
U.P 8.1 91.9 5.4 94.6
G.Total 9.8 90.2 6.1 93.9 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
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4.12 Proceeding under Sections 25 and 27
Section 25 of the Act deals with enforcement and execution of orders of consumer
foras whereas section 27 deals with consequences for non-compliance of order. An
application can be filed under section 25 for execution and under section 27 for non-
compliance of the order of the Forums and the Commissions. However, only 6.7 percent of
the complainants of the District Forums filed application for proceedings under Sections 25
and 27. This indicates by and large the orders of the District Forums are complied with by
both the parties and only in few cases the complaint regarding the non-execution persists.
(Figure 4.5)
Figure 4.5
Source: Field Survey, Centre for Consumer Studies, IIPA
2.13 Behaviour of the Staff
The District Forums and the Commissions have public interface to a large extent.
Therefore, the staff is expected to be helpful, cooperative and courteous towards the
consumer. However, only 57 percent of the complainants agreed that the staff of the District
Forum/Commissions is helpful. In fact the complainants/appellants found that the staff of the
NCDRC was very helpful and approachable. This was opined by 76.9 percent of the
complainants/ appellants in the NCDRC.
Proceedings Under Section 25 & 27
5.9
94.1
8.6
91.4
2.4
97.6
12.5
87.5
8.1
91.9
6.7
93.3
Yes No Yes No Yes No Yes No Yes No Yes No
Gujarat Karnataka Odisha Tripura U.P G.Total
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Table 4.12 Behaviour of the Staff of the Forums/Commissions
Forums Supportive and Helpful Staff
Did any Staff Suggest to Engage a Lawyer
Faced any Difficulty in filing the Complaint
Yes No Yes No Yes No
DCDRF 54.8 45.2 25.6 74.4 38.4 61.6
SCDRC 57.1 42.9 32.4 67.6 27.0 73.0
NCDRC 76.9 23.1 7.7 92.3 15.4 84.6
Total 57.0 43.0 25.7 74.3 34.2 65.8
Source: Field Survey, Centre for Consumer Studies, IIPA
The District Forums have staff which is on deputation and comes from various other
departments and hence their attitude is not consumer friendly. Moreover, the staff is not
trained in judicial work and the problem of transfer and posting also remains. Once a staff
member is transferred his position is not filled up immediately and it takes a long time and
effort to fill up the vacancy. 74.3 percent of the complainants opined that the staff of the
forum did not suggest them to engage a lawyer. Only a marginal number of 25.7 percent of
the complainants said that the staff had suggested them to engage a lawyer. As far as any
difficulty faced by the complainants in filing the complaints is concerned, 65.8 percent were
of the view that they did not face any difficulty in doing so. However, 34.2 percent of the
complainants said they faced difficulty in filing the complaint. (Table 4.12)
4.14 Response about Engaging Lawyers
The spirit behind the provision of the Consumer Protection Act was that the
consumer and the seller will come face to face and based on simple procedures and
summary trial the complaint would be decided. The Act did not envisage the hiring of the
services of the lawyer. The Supreme Court also in a recent judgment in the case of C.
Venkatachalam v. Ajitkumar C. Shah and others36 has held that it is not necessary to
engage a lawyer and anyone with some knowledge of consumer issues can represent the
consumer. But the survey data suggests that 77.7 percent of the complainants had availed
the services of the lawyers (Table 4.13).
36
Civil Appeal No.868 of 2003 decided on 29 August, 2011
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Table 4.13 Response about Engaging Lawyer
Fora Response
Engaged a Lawyer
Reasons for Engaging a Lawyer
Yes No No Knowledge about the
Law
No Knowledge about the Procedure
Due to Time Constraint
Distance from the
Residence
DCDRF 75.0 25.0 49.4 43.9 28.7 19.5
SCDRC 81.5 18.5 75.4 64.6 70.8 40.0
NCDRC 92.3 7.7 76.9 69.2 23.1 61.5
Total 77.7 22.3 57.9 50.8 39.7 27.3 Source: Field Survey, Centre for Consumer Studies, IIPA
The next question of enquiry was as to the reasons for engaging the services of the
lawyers. 57.9 percent of the respondents had no knowledge of the law, 50.8 percent were
not aware about the procedure to be followed, 39.7 percent had time constraint and 27.3
percent were of the opinion that due to the distance from the residence they had to engage
the services of a lawyer. However, the distance from the residence becomes a major factor
as one moves to a higher level of redressal mechanism. 61.5 percent of the
complainants/appellants in the NCDRC said that due to the distance from the place of
residence they had to avail the services of the lawyer (Table 4.13).
Table 4.14
Level of Satisfaction with the Services of Lawyers
Response Forums
DCDRF SCDRC NCDRC Total
Satisfied with the Efforts of Lawyer
Yes 70.1 83.9 69.2 73.4
No 14 8.9 23.1 13.3
Can't Say 15.9 7.2 7.7 13.3
If Yes, then level of Satisfaction with the Efforts of Lawyer
To Large Extent 61 63.5 53.8 61.1
To Some Extent 9.8 32.7 15.4 15.3
Not at All 29.2 3.8 30.8 23.6
Lawyers Responsible for Delay in Disposal Cases
Yes 26.2 20 23.1 24.4
No 14.6 15.4 15.4 14.9
Cant' Say 59.2 64.6 61.5 60.7 Source: Field Survey, Centre for Consumer Studies, IIPA
Centre for Consumer Studies, IIPA
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The complainants seem to be overall satisfied with the services of the lawyers as
stated by 73.4 percent of the complainants. In fact 61.1 percent of them are satisfied to a
large extent. The complainants could not say whether the lawyers were responsible for the
delay in disposal of the complaints as 60.7 percent of the complainants could not respond to
the query (Table 4.14).
4.15 Frequency of Visits to the Forum / Commission
The delay in disposal of the complainants only increases the number of visits of the
complainants to the Forums and Commissions. 29.6 percent of the complainants visited
these redressal mechanism agencies between 1-4 times, 30.4 percent visited them 5-8
times, 16.7 percent visited the Forums/Commissions 9-12 times and 13.3 percent visited
these redressal agencies more than 12 times. The percentage of complainants visiting the
District Forum is more than those visiting the SCDRC and NCDRC. This clearly indicates the
delay in disposal of complaints by the District Forums (Table 4.15).
Table 4.15
Frequency of Visits to the Forum/Commission
Forums Frequency of Visits
One to four
times
Five to eight times
Nine to twelve times
More than twelve times
No answer
DCDRF 26.4 29.4 17.2 16.6 10.4
SCDRC 35.9 31.3 15.6 6.3 10.9
NCDRC 38.5 38.5 15.3 7.7 0.0
Total 29.6 30.4 16.7 13.3 10.0 Source: Field Survey, Centre for Consumer Studies, IIPA
4.16 Hearing of Complaint and Punctuality of Members
50.8 percent of the complainants are of the view that their complaints were heard
properly. The percentage is higher in the SCDRC and the NCDRC. But majority of the
respondents (51.3 percent) said that it was not heard properly by the District Forum. Lack of
punctuality has been a common complaint as far as the District Forum is concerned.
Similarly 55.8 percent of the complainants were of the view that the President and the
Members are regular in attending the Forum/Commission. The response of the complainants
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on the aspect of punctuality of President and Members is as follows, 50.6 percent for the
District Forum, 63.1 percent for the SCDRC and 84.6 percent of the NCDRC. In fact 40.1
percent could not answer this question (Table 4.16).
Table 4.16
Hearing of Complaints and Punctuality of Members
Forums Was Your Complaint Heard Properly?
Punctuality of President/Members in attending
the Forum
Yes No Can't Say Yes No Can't Say
DCDRF 44.4 51.3 4.4 50.6 0.6 48.8
SCDRC 61.5 33.8 4.6 63.1 10.8 26.2
NCDRC 76.9 15.4 7.7 84.6 15.4 0.0
Total 50.8 44.6 4.6 55.8 4.1 40.1 Source: Field Survey, Centre for Consumer Studies, IIPA
4.17 Perception about VCOs
The complainants are more or less unaware about the role of the VCOs in filing
complaints. Almost 80 percent of them did not know that the VCOs can file a complaint on
behalf of the consumers. As per data 94.3 percent of the respondents had not taken help of
VCOs in filing the complaint. Even though the CP Act envisages that the VCOs can file
complaints on behalf on the consumers yet very few VCOs are actively doing this (Table
4.17).
Table 4.17 Perception about the VCOs
Forums Awareness about the Role of VCOs in Filing a
Complaint
Taken Help from VCOs in Filing a Complaint
Yes No Yes No
DCDRF 19.5 80.5 5.7 94.3
SCDRC 21.5 78.5 5.8 94.2
NCDRC 23.1 76.9 0.0 100.0
Total 20.2 79.8 5.7 94.3 Source: Field Survey, Centre for Consumer Studies, IIPA
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4.18 Opinion about Setting up Free Consumer Guidance Cells
A visit to the redressal mechanism reveals that there is no appropriate mechanism to
guide the consumers. There is no single window where the consumer can seek information
about issues relating to the process of filing complaints and the paper work that is to be
done. 60.7 percent of the complainants agreed that there is a need to set up a free
Consumer Guidance Cell in all the District Forums, SCDRCs and NCDRC. This will go a
long way in helping the consumer and providing them basic information and guidance (Table
4.18).
Table 4.18 Setting up Free Consumer Guidance Cells
Forums
Response
Yes No Can't Say
DCDRF 58.5 20.7 20.8
SCDRC 67.7 12.3 20.0
NCDRC 53.8 7.7 38.5
Total 60.7 17.8 21.5 Source: Field Survey, Centre for Consumer Studies, IIPA
4.19 Facing Harassment in the Forums
Even though there is delay in disposal of the complaints, non-existing help desks in
the District Forums, lack of supporting staff, yet the complainants agreed that they were not
harassed. 71.3 percent said so. They also revealed that since most of the cases are taken
care of by lawyers the question of harassment does not arise (Table 4.19).
Table 4.19
Facing Harassment in the Forums (Only for District Forums)
State
Response
To a Large Extent
Upto Some Extent
Not at all
Gujarat 8.2 11.6 80.2
Karnataka 8.6 20.4 71.0
Odisha 9.5 21.0 69.5
Tripura 6.3 6.3 87.4
U.P 20.1 31.6 48.3
Total 10.5 18.2 71.3 Source: Field Survey, Centre for Consumer Studies, IIPA
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4.20 Response regarding Filing a Complaint Again
The complainants do not seem to be deterred by the slow pace of justice delivery
mechanism as 61.4 percent agreed that inspite of the problems in the working of the
redressal mechanism they would still file a complaint if necessary (Table 4.20).
Table 4.20
Would you File a Complaint Again if Necessary
Forums
Response
Yes No Can't Say
DCDRF 59.8 26.8 13.4
SCDRC 62.5 26.6 10.9
NCDRC 76.9 23.1 0.0
Total 61.4 26.6 12.0 Source: Field Survey, Centre for Consumer Studies, IIPA
4.21 Decisions based on Merit
There have been reports that corruption has crept into the working of the redressal
agencies atleast at the level of the District Forums. Allegations are made that there is a
nexus between the members of the forums and the lawyers. As a result the decisions are
based on other considerations than merit. However, 55.8 percent of the complainants do not
really agree with this view and are of the opinion that the decisions are based on merit. The
perception is better about the NCDRC than the SCDRCs and the District Forums. 57.9
percent of the complainants believe that the decisions of the Forums and Commissions are
to a large extent based on merit (Table 4.21).
Table 4.21
Perception about Decisions Based on Merit
Forums/Commission Do the Forums/Commissions Fairly Decide Cases on Merit?
To What Extent Members of
Forums/Commissions Fairly decide the Cases
Yes No Can't Say To Large Extent
To Some Extent
Can't Say
DCDRF 57.9 38.4 3.7 58.5 16.5 25.0
SCDRC 47.7 38.5 13.8 66.1 23.2 10.7
NCDRC 69.2 0.0 30.8 15.4 23.1 61.5
Total 55.8 36.4 7.8 57.9 18.5 23.6 Source: Field Survey, Centre for Consumer Studies, IIPA
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4.22 Time Taken for First Hearing after Receipt of Notice
The time taken to initiate the first hearing
after the complaint is filed is very important
for quick disposal of the complaint. As far as
the complaints in the district forums are
concerned, 28.7 percent of the complainants
said that the first hearing was after one
month of the receipt of notice, 27.2 said after
two months, 22.3 percent said after three
months, 11.7 percent said the first hearing
was after four months and 10.2 percent of
the respondents said it look more than five months for the first hearing to commence.
Table 4.22 Time Taken for First Hearing after Receipt of Notice
States DCDRF/SCDRC Duration
One Month
Two Month
Three Month
Four Month
Five month & Above
Gujarat Junagadh 20.0 4.0 8.0 40.0 28.0
Surat 12.0 8.0 20.0 28.0 32.0
Total 16.0 6.0 14.0 34.0 30.0
Karnataka
Bangalore Rural 42.1 31.6 26.3 0.0 0.0
Shimoga 40.0 42.5 17.5 0.0 0.0
Total 40.7 39.0 20.3 0.0 0.0
Odisha
Balasore 42.3 26.9 7.7 7.7 15.4
Puri 44.0 32.0 24.0 0.0 0.0
Total 43.1 29.4 15.7 3.9 7.8
Tripura
West Tripura 20.0 30.0 26.7 10.0 13.3
South Tripura 16.0 28.0 40.0 12.0 4.0
Total 18.2 29.1 32.7 10.9 9.1
U.P
Azamgarh 20.0 24.0 36.0 12.0 8.0
Meerut 28.0 36.0 20.0 12.0 4.0
Total 24.0 30.0 28.0 12.0 6.0
G.Total 28.7 27.2 22.3 11.7 10.2
SCDRC
Gujarat 20.8 37.5 12.5 12.5 16.7
Karnataka 4.0 16.0 44.0 12.0 24.0
Odisha 40.0 20.0 8.0 4.0 28.0
Tripura 28.0 28.0 16.0 8.0 20.0
U.P 24.0 40.0 20.0 12.0 4.0
G. Total 23.4 28.2 20.2 9.7 18.5 Source: Based on Secondary Data of the DCDRF, SCDRC
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While the corresponding figures for the SCDRC are 23.4 percent, 28.2 percent, 20.2
percent, 9.7 percent and 18.5 percent respectively. While the complaints are supposed to be
disposed of in three months, in more than 44.2 percent of the complaints the first hearing is
after three months. Similarly in the SCDRC in 48.4 percent of the complaints/appeals the
first hearing commences after three months. Therefore, the delay is bound to take place
(Table 4.22).
4.23 Number of Hearings Conducted to Dispose of Complaints
The number of hearings is an indicator of the speed of the disposal of the complaints.
Only 33.2 percent of the complaints filed in the District Forums were disposed in 1-3
hearings, 27.4 percent in 4-6 hearings, 21.2 percent in 7-10 hearings and 18.2 percent of the
complaints took more than 10 hearings to be disposed.
Table 4.23
Average Number of Hearings Conducted to Dispose of Complaints
States DCDRF/SCDRC Number of Hearings
1-3 4-6 7-10 More than 10
Gujarat Junagadh 35.7 14.3 42.9 7.1
Surat 40 30 10 20
Total 37.5 20.8 29.2 12.5
Karnataka
Bangalore Rural 41.2 29.4 11.8 17.6
Simoga 10.5 5.3 73.7 10.5
Total 25 16.7 44.4 13.9
Odisha Balasore 37.5 41.7 4.2 16.6
Puri 50 37.5 0 12.5
Total 40.6 40.6 3.2 15.6
Tripura
West Tripura 23.1 34.6 26.9 15.4
South Tripura 50 30 0 20
Total 30.6 33.3 19.4 16.7
U.P
Azamgarh 18.8 25 12.5 43.7
Meerut 46.7 26.7 6.6 20
Total 32.2 25.8 9.7 32.3
G. Total 33.2 27.4 21.2 18.2
SCDRC
Gujarat 12.5 25 37.5 25
Karnataka 11.2 33.3 44.4 11.1
Odisha 18.2 27.3 36.4 18.1
Tripura 17.4 21.8 47.8 13
U.P 12 16 40 32
G. Total 14.3 24.7 41.2 19.8 Source: Based on Secondary Data of the DCDRF, SCDRC
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The data of the number of hearings conducted to dispose of complaints/ appeals in the
SCDRC reflects the quantum of delay in the State Commissions. Only 14.3 percent of the
complaints/ appeals are disposed in 1-3 hearings, 24.7 percent in 4-6 hearings while 41.2
percent in 7-10 hearings and 19.8 percent in more than 10 hearings to dispose of the
complaints (Table 4.23).
4.24 Number of Adjournments given by the Forums / Commissions in Disposal of Complaints
The Consumer Protection Act provides in proviso to Section 13 (3A) that no
adjournment shall be ordinarily granted by the District Forum unless sufficient cause is
shown and the reasons for the grant
of adjournment have been recorded
in writing by the Forum. Regulation
11 of the Consumer Protection
Regulations, 2005 further provides
that every proceeding before a
Consumer Forum shall be conducted
as expeditiously as possible and as
per the requirements of the Act. The
Consumer Forum shall record the
reasons for any adjournment made
by it. The cost of adjournment, if asked by the opposite party or parties, shall not be less
than five hundred rupees per adjournment and could be more depending upon the value and
nature of the complaint as may be decided by the Consumer Forum. The complainant,
appellant or petitioner, as the case may be, may also be burdened with cost unless sufficient
cause is shown for seeking adjournment. However, in the circumstances of a particular
case, the amount of cost imposed may be less than five hundred rupees but in no case less
than one hundred rupees. The cost imposed may be given to the other party or parties to
defray his or their expenses or be deposited in the Consumer Legal Aid Account to be
maintained by the respective Consumer Forum, as the Consumer Forum may order. If any
adjournment is granted without awarding cost, the order sheet shall mention the reasons
thereof. All orders adjourning the matter shall be signed by the President and members
constituting the Bench and not by the Court Master or Bench Clerk. Non-availability of a
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lawyer who is representing the party shall not be a ground for seeking adjournment of the
matter unless absence is beyond the control of the lawyer such as his sudden illness or
bereavement in the family.
Table 4.24
Average Number of Adjournments granted by the Forums/Commissions in Disposal of Complaints
States DCDRF/SCDRC Number of Adjournments
No
ad
jou
rnm
en
t
1-2
Ad
jou
rnm
en
ts
3-4
Ad
jou
rnm
en
ts
4-6
Ad
jou
rnm
en
ts
Mo
re t
han
6
Gujarat Junagadh 35.7 28.6 14.3 21.4 0.0
Surat 40 30 20 10 0.0
Total 37.5 29.2 16.7 16.6 0.0
Karnataka
Bangalore Rural-1 30.4 30.4 17.4 13.1 8.7
Simoga 36.8 26.4 15.8 10.5 10.5
Total 33.3 28.6 16.7 11.9 9.5
Odisha Balasore 12.5 54.1 29.2 4.2 0.0
Puri 12.5 0 37.5 25 25.0
Total 12.5 40.6 31.2 9.4 6.3
Tripura
West Tripura 12.0 24.0 28.0 20.0 16.0
South Tripura 22.2 33.3 22.2 11.2 11.1
Total 14.7 26.5 26.5 17.6 14.7
U.P
Azamgarh 6.3 25.0 31.2 25.0 12.5
Meerut 13.3 33.3 26.7 20.0 6.7
Total 9.7 29.0 29.0 22.6 9.7
G.Total 21.5 30.8 24.0 15.6 8.0
SCDRC
Gujarat 21.4 14.3 28.6 21.4 14.3
Karnataka 15.4 15.4 23.1 30.7 15.4
Odisha 16 20 24 40 0
Tripura 17.4 13 34.8 30.4 4.4
UP 21.4 14.3 28.6 21.4 14.3
G. Total 18.3 15.4 27.8 28.8 9.7 Source: Based on Secondary Data of the DCDRF, SCDR
The data of the District Forums and the SCDRCs reveals that the number of
adjournments granted has been too many and no cost has been imposed. In most of the
cases the lawyers have asked for adjournments which have been granted on flimsy grounds.
The District Forums and the State Commissions are neither really bothered much nor have
they been strict in giving adjournments. Every adjournment in fact further delays the disposal
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of the complaint. By District Forums, in 21.5 percent of the complaints no adjournments were
given. These were mainly very small cases based on simple facts. 1-2 adjournments were
given in 30.8 percent of the complaints, 3-4 adjournments in 24 percent of the complaints, 4-
6 adjournments in 15.6 percent of the complaints and in 8 percent of the complaints more
than 6 adjournments were given.
While in the State Commissions, 18.3 percent of the complaints/ appeals have been
disposed of without granting any adjournments. 15.4 percent of the complaints/ appeals
have been disposed of with 1-2 adjournments, 3-4 adjournments were granted in 27.8
percent of the complaints, 4-6 adjournments were granted in 28.8 percent of the complaints
and more than 6 adjournments were given in 9.7 percent of the cases. The number of
adjournments granted has been more than what has been stipulated under the Act; hence
delay in disposal of cases (Table 4.24).
4.25 Time Taken in Disposal of Complaints
The data reveals that in the case of District Forums only 24.6 percent of complaints
are disposed of within the stipulated time period of three months. 26.8 percent within a
period of 3-6 months, 16.4 percent of the complaints between 6-9 months, 10.4 percent of
the complaints within a period of 9-12 months and 21.8 percent of the cases took more than
12 months and above.
Figure 4.6
Source: Based on Secondary Data of the DCDRF, SCDRC
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Similar is the case with the disposal of the complaints/ appeals by the SCDRCs.
Nearly 24.1 percent of the complaints/ appeals are disposed of within three months, 23.8
percent within a period of 3-6 months, 15.9 percent within a period of 6-9 months and a large
number of them 25.2 percent take more than 12 months.
The analysis of the secondary data of the District Forums and SCDRC of the five
states reveals that there is a delay in disposal of the complaints which counters the very
objective of the Consumer Protection Act to provide quick and inexpensive remedy to the
consumers (Table 4.25).
Table 4.25
Average Time Taken in Disposal of Complaints
Sates DCDRF/SCDRC Duration
Within 3 Months
3-6 Months
6-9 Months
9-12 Month
12 Months &
Above
Gujarat Junagadh 21.7 17.4 8.7 4.4 47.8
Surat 44.4 33.4 11.1 11.1 0.0
Total 28.1 21.7 9.4 6.4 34.4
Karnataka
Bangalore Rural 50.0 33.3 0.0 0.0 16.7
Simoga 44.0 28.0 16.0 8.0 4.0
Total 46.5 30.2 9.3 4.7 9.3
Odisha
Balasore 12.5 41.7 33.3 12.5 0.0
Puri 4.5 18.3 4.5 13.6 59.1
Total 8.7 30.4 19.6 13.0 28.3
Tripura
West Tripura 9.1 13.6 18.2 9.1 50.0
South Tripura 50.0 37.5 12.5 0.0 0.0
Total 20.0 20.0 16.7 6.6 36.7
U.P
Azamgarh 12.5 25.0 37.5 25.0 0.0
Merrut 25.0 31.2 18.8 18.8 6.2
Total 18.8 28.1 28.1 21.9 3.1
G.Total 24.6 26.8 16.4 10.4 21.8
SCDRC
Gujarat 36.4 18.2 13.6 9.1 22.7
Karnataka 18.2 22.7 9.1 13.6 36.4
Odisha 20.0 10.0 15.0 5.0 50.0
Tripura 10.5 21.1 10.5 15.8 42.1
U.P 29.2 20.8 25.0 16.7 8.3
G. Total 24.1 23.8 15.9 11.0 25.2 Source: Based on Secondary Data of the DCDRF, SCDRC
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CHAPTER V
ROLE OF VARIOUS STAKEHOLDERS IN CONSUMER PROTECTION
(Central & State Governments, VCOs, Educational Institutions, Business & Trade)
There are three main players in the consumer movement- Government, Business,
and Civil Society which need to be proactive and interface with each other to bring consumer
empowerment. In the present socio-economic scenario, there is need for commitment and
coordination among these stakeholders to make consumer rights a reality. This chapter
gives a brief outline of the role of the key stakeholders.
5.1 Initiatives by the Department of Consumer Affairs, Government of India
The Consumer
Movement in India got an
impetus when a separate
Department of Consumer
Affairs was established in
1991 as part of the Ministry
of Civil Supplies,
Consumer Affairs and
Public Distribution. The
Department was set up in
response to the persistent
demand of consumer
activists and organizations. The Ministry has since been renamed as Consumer Affairs,
Food and Public Distribution. The Department of Consumer Affairs over the period has taken
a number of initiatives to promote a responsible and responsive consumer movement in the
country. These measures include strengthening the Consumer Forums and Commissions,
the use of multi-media campaign for promoting consumer awareness and encouraging
consumers‘ involvement through efforts of Government and Non-Governmental
Organizations and others. The Department through its various programmes tries to involve
and motivate various sections of the society viz. women, youth, rural folk, and civil society
organizations.
Centre for Consumer Studies, IIPA
158
5.1.1 Creation of Consumer Welfare Fund
The Central Excise and Salt Act, 1944 was amended in 1991 to enable the
Central Government to create a Consumer Welfare Fund where the money which is not
refundable to the manufacturers, etc. is being credited. Consumer Welfare Fund was
created in 1992 with the objective of providing financial assistance to promote and
protect the welfare of the consumer, create consumer awareness and strengthen
consumer movement in the country, particularly in rural areas. The Department of
Consumer Affairs operates the fund, setup by the Department of Revenue under the
Central Excise and Salt Act, 1944. The Consumer Welfare Fund Rules were notified in
the Gazette of India in 1992 and Guidelines were framed in 1993 which were revised in
2007. Under the Consumer Welfare Fund Rules, any agency/organisation engaged in
consumer welfare activities for a period of three years and registered under the
Companies Act, 1956 or any other law for the time being in force, village/mandal/samiti-
level cooperatives of consumers, industries, State Government etc. are eligible for
seeking financial assistance from the Fund. So far a sum of ` 192.64 crore has been
accrued to the fund and expenditure of ` 86.85 crore has been incurred. An amount of `
13.65 crore have been utilized from the fund in 2010-11 and ` 20,71,76,076 have been
utilized during the financial year 2011-12 till 31.12.2011.1
5.1.2 Strengthening the Consumer Forums
Though it is the responsibility of the state government to establish and maintain
consumer forums at the District levels, the Central Government has been implementing a
number of schemes for improving the functioning of Consumer Forums/ Commissions. The
Central Government has been extending financial assistance to States/ UTs for
strengthening the infrastructure of the District Forums and State Commissions to enable
them to function more effectively and efficiently.
5.1.2.1 Scheme for Computerization and Computer Networking of Consumer Fora
Under the CONFONET scheme all Consumer Forums and Commissions in the
country are being computerized to allow consumers to access the status of their cases and
information. This will also give a boost to the management of records and record keeping.
1 Department of Consumer Affairs, Annual Report 2011-12, chapter 2, p 10
Centre for Consumer Studies, IIPA
159
Under the scheme, the Consumer Fora at all the three tiers throughout the country were
to be fully computerized to enable access to information and quicker disposal of cases.
The project is being implemented by the National Informatics Centre (NIC) on a turnkey
basis. The Scheme for ―Computerization and Computer Networking of Consumer Fora in
the Country" (CONFONET) was started during the 10th Plan period with an outlay of ` 48.64
crore and was extended into the 11th Plan w.e.f 2009-10 for a period of three years i.e.,
2009-10, 2010-11 and 2011-12 with a total outlay of ` 25.69 crore. While during the 10th
Plan the basic infrastructure for computerization and computer networking was provided to
the Consumer Fora, the 11th Plan Scheme(s) focused on the strengthening of HR support by
providing technical support and imparting training to Consumer Forum Presiding Officers,
Members and Staff to enable a smooth transition from manual to computer-based system.
The scheme has been extended during 11th Plan period with a total outlay of ` 25.69
crores. During the year 2011-12 an amount of ` 0.75 crores has been released to NIC
for the activities to be undertaken under ―CONFONET‖ Project in the 11th Plan. Under
the 11th plan scheme, technical support has been provided by deploying Technical Support
Personnel (TSP) in a staggered manner for three years. In the first year, TSPs were
provided to all locations, in the second year the numbers of TSPs posted were reduced to
half and in the third year, the number of TSPs is being reduced to one-third.
The CONFONET scheme when fully
implemented throughout the country would
substantially enhance the efficiency of the
consumer fora and also enable not only the
consumer fora members and advocates to
access case related information online but
would be of tremendous assistance to
consumers. Under the CONFONET scheme, the Case Monitoring System provides a single-
window solution for automation of all the activities undertaken at the Consumer Fora. The
registration of complaints, recording of court proceedings, issue of notices, generation of
cause lists, recording of judgments, record-keeping and generation of statistical reports and
all other court related activities can be carried out through the Case Monitoring System
alone. Data captured at the forums can also be replicated to a centralized server which
allows the complainants, respondents and forum staff to have easy access to accurate and
dependable information regarding cause lists, case status, case history and statistical
Centre for Consumer Studies, IIPA
160
reports. In furtherance to the objectives of this project, the CONFONET website
(http://confonet.nic.in) has widened the reach of Consumer Forums by making cause lists,
judgments, case status and case history available online. It has also become a primary
source of information about Consumer Rights and Consumer Protection to the public. It is
now proposed to carry forward the CONFONET Scheme into the 12th Five Year Plan. During
the 12th Five Year Plan, the main emphasis would be on ensuring full implementation of the
ICT based system. The project will now be implemented with following objectives:
a. To develop an ONLINE State Centric Model Case Monitoring System accessible
from State Commission and all District Forums of respective states and deploy the same at Central/State Data Centres.
b. To allow online filing of consumer dispute cases and the facility to make them part of the Confonet application software workflow.
c. To facilitate Reporting and Monitoring at all levels.
d. To strengthen transparency and efficiency in the judicial system.
e. To allow time efficient record search through various queries on internet portal.
f. To facilitate Data Analysis and generation of various MIS Reports. The activities proposed to be undertaken during the 12th Five Year Plan include:
1. Change request management, Feature up-gradation, Maintenance and Security Audit of the software application.
2. Project Management at NIC, NCDRC, Consumer Fora, State Government and the Department of Consumer Affairs.
3. Setting up of necessary Confonet infrastructure at Central/State Data Centre.
4. Provision of operational staff at all consumer forums.
5. Release of funds to State Governments/State Commissions for purchase of new Hardware at State/District Consumer Forums.
6. Organization of Conferences, Workshops, Training, Review and Monitoring.
7. Provision of fast and reliable internet connectivity by the State Government with 100% redundancy. Active interest and participation of all stakeholders can make this scheme more
fruitful. Strong mechanism with regard to monitoring and active involvement of NCDRC,
State Commissions and State Governments is required to inspire consumer forums to adopt
the computerized system. The entire life cycle of the cases also needs to be entered into the
system to make the scheme more beneficial for the consumers. It is also desired that the
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161
state governments give priority to the maintenance and upkeep of all ICT infrastructure
supplied under the scheme, including hardware and network connectivity.2
For achieving the targets under the Scheme, the active cooperation and interest of
the State Governments and accordance of high priority to the area of consumer protection is
essential. The State Governments need to make provisions to cover operational costs
including the costs for maintenance of the computer systems, UPS and networking etc. The
staff and members posted at the consumer fora must obtain training on basic computer
usage and use of the ICT based system, in order to replace the manual system of case
management at the consumer fora.
5.1.2.2 Scheme for Strengthening the Infrastructure of Consumer Fora
The Central Government has
been extending financial assistance to
States/UTs for strengthening the
infrastructure of consumer fora so that
minimum level of facilities is made
available at each consumer forum,
which is required for their effective
functioning. Infrastructural Facilities are
also being provided under the scheme
which includes construction of new building of the consumer fora, carrying out
addition/alteration/renovation of existing buildings and grant for acquiring non-building
assets such as furniture, office equipment etc. Under the Scheme for Strengthening of
Consumer Fora an amount ` 651.50 lakhs has been released so far to 6 States,
namely, Kerala (` 15.00 lac), Nagaland (`. 260.25 lac), Punjab (` 18.75 lac), Sikkim
(` 12.50 lac), Tamil Nadu (` 196.79 lac) and West Bengal (` 148.21 lac). An amount of
` 19.90 crore was released to CPWD for the construction of Building for NCDRC at
GPO Complex, INA, New Delhi which has been completed and they have started
functioning in the new premises w.e.f. 17.8.2011.3 It is proposed to continue this scheme
into the Xll Plan period. In the Xll Plan Scheme, it is also proposed to give additional financial
2 Agenda for the Meeting with Secretaries in-charge Consumer Affairs & Presidents State Commission, DCA,
14th
March, 2012 p. 3-4 3 Department of Consumer Affairs, Annual Report 2011-12, chapter 5, p. 55
Centre for Consumer Studies, IIPA
162
assistance to States/UTs for construction of a mediation centre with an area of 1000 sq. ft. in
each consumer forum.4
5.1.3 Awareness Initiatives
One of the major hindrances in the consumer movement in the country is the lack of
awareness among the consumers. The consumers apart from being largely unorganized do
not have the mechanism to understand their rights and responsibilities. To generate
awareness among the masses a number of schemes have been undertaken by the
Department from the Consumer Welfare Fund. The Department is annually celebrating 24th
December as ‗National Consumer Day‘ and 15th March as ‗World Consumer Rights Day‘ in
which a number of awareness programmes are being organized in collaboration with other
stakeholders.
5.1.3.1 Involvement of Educational Institutions in Consumer Protection-
Scheme on Consumer Clubs in Schools Under one of the
schemes consumer clubs
have been set up in
Schools and Colleges
with an objective to
involve the students in
the consumer movement
and also generate
awareness among them,
who are compulsive
buyers and are often
mislead by the
advertisements.
Structured study on
consumer affairs has been introduced as a part of syllabus in high schools in a number of
states.
4 Agenda for the Meeting with Secretaries in-charge Consumer Affairs & Presidents State Commissions, DCA,
14th
March, 2012, p. 5
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163
Table 5.1 State-wise Consumer Clubs in Schools
States Total No. of schools*
Total No. of Consumer
Clubs
Percent of Consumer Club in Schools
Schools with Consumer Club
Schools without Consumer Club
Andhra Pradesh 36537 977 2.67 97.33
Arunachal Pradesh 751 100 13.32 86.68
Assam 15243 0 0 100
Bihar 15965 0 0 100
Chhattisgarh 13583 250 1.84 98.16
Goa 498 0 0 100
Gujarat 30275 250 0.83 99.17
Haryana 7485 135 1.8 98.20
Him. Pradesh 4653 36 0.77 99.23
J. & Kashmir 6700 153 2.28 97.72
Jharkhand 7394 0 0 100
Karnataka 39242 650 1.66 98.34
Kerala 8516 100 1.17 98.83
Madhya Pradesh 43637 0 0 100
Maharashtra 45880 450 0.98 99.02
Manipur 1536 0 0 100
Meghalaya 2414 0 0 100
Mizoram 1681 100 5.95 94.05
Nagaland 930 0 0 100
Orissa 25902 550 1.93 98.07
Punjab 6524 250 3.83 96.17
Rajasthan 40154 1000 2.49 97.51
Sikkim 367 50 13.62 86.38
Tamil Nadu 17599 1500 8.52 91.48
Tripura 1671 27 1.62 98.38
Uttar Pradesh 53830 0 0 100
Uttarakhand 6092 100 1.64 98.36
West Bengal 9869 400 4.05 95.95
A&N Islands 157 50 31.85 68.15
Chandigarh 130 0 0 100
D&N Haveli 121 0 0 100
Daman & Diu 52 0 0 100
Delhi 2395 146 0 100
Lakshadweep 117 21 23.53 76.47
Puducherry 360 50 13.89 86.11
INDIA 448160 7345 1.6 98.4 Source: Select Educational Statistics (2005-06), Department of Higher Education, HRD and DCA, GoI *Including Middle /Sr Basic Schools, High/Post Basic Schools & Pre-Degree Junior Colleges/ Higher Sec. Schools
This scheme was launched in 2002, according to which a consumer club can be set
up in each Middle/ High/ Higher Secondary School/College affiliated to a Government
Centre for Consumer Studies, IIPA
164
recognised Board or University. A grant of ` 10, 000/- per consumer club is admissible under
the scheme. This scheme has been decentralized and transferred to the Government of
States/UTs w.e.f from 1.4.2004. An amount of ` 115 lakhs was released in 2008- 09, ` 105
lakhs in 2009-2010, ` 10 lakh in 2010-11 and ` 37 lakh till 31.12.2011. So far, 7749
consumer clubs have been sanctioned in 23 States/UTs. The remaining States/UTs have
been vigorously pursued to implement the scheme.5
Figure 5.1
Percent of Schools having Consumer Club
2.7 1.8 0.8 1.8 0.82.3 1.7 1.2 1.0
6.0
1.93.8
2.5
13.6
8.5
1.6 1.64.1
31.9
23.5
13.9
1.6
13.3
A.P
Aru
nach
al
Ch
hatt
isg
arh
Gu
jara
t
Hary
an
a
H.P
J &
K
Karn
ata
ka
Kera
la
Mah
ara
sh
tra
Miz
ora
m
Ori
ssa
Pu
nja
b
Raja
sth
an
Sik
kim
Tam
il N
ad
u
Tri
pu
ra
Utt
ara
kh
an
d
West
Ben
gal
A &
N Isla
nd
s
Laksh
ad
weep
Pu
du
ch
err
y
Ind
ia
Source: Department of Consumer Affairs, GoI
Figure 5.2
Source: Department of Consumer Affairs, GoI
5 Department of Consumer Affairs, Annual Report 2011-12, Chapter. 5, p. 58-59
Centre for Consumer Studies, IIPA
165
Figure 5.3
Table 5.2 Amount sanctioned to the State/U.T. for Consumer Clubs
(` in lakhs) S. No.
Name of the State/UT
No of schools
Amount sanctioned in 1 year/date
Amount sanctioned in 2nd
year/date
1. A.P 727 ` 72.70 (10.03.2005) - 2. Chhattisgarh 250 `25.00 (11.01.2007) - 3. Gujarat 250 ` 25.00 (31.03.2005) ` 24,05,145(16.04.2007)
4. Haryana 135 ` 13.50 - ` 2.00 (JSY Pending UC) = ` 11.50 (16.09.2006)
-
5. Karnataka 150 ` 15.00 (31.03.2005) ` 15.00(09.01.2009)
6. Kerala 100 ` 10.00 (02.11.2007) -
7. Maharashtra 450 ` 45.00 (21.06.2004) ` 45.00(17.03.2008)
8. Odisha 500 ` 50.00(31.03.2005) ` 50.00 (24.12.2009)
9. Punjab 250 ` 25.00(28.03.2006) -
10. Rajasthan 500 ` 50.00(31.03.2005) ` 50.00(27.09.2006)
11. Tamil Nadu 500 ` 50.00(31.03.2005) ` 50.00(13.10.2006)
12. Uttrakhand 100 ` 10.00 (13.06.2007) - 13. West Bengal 400 ` 40.00(28.03.2006) - 14. Chandigarh 50 ` 5.00(19.05.2009) - 15. H.P 36 ` 3.60- ` 1.50 (JSY pending
UC)= ` 2.10 (30.03.2006)
-
16. Sikkim 50 ` 5.00 (20.12.2005) - 17. Mizoram 100 ` 10.00 (12.01.2007) - 18. Arunachal
Pradesh 32 68
` 3.20 (30.03.2006)
` 6.80(27.03.2008)
-
19. Lakshadweep 21 ` 2.10 (13.02.2006) - 20. J & K 138 ` 13.80
(28.04.2005)
-
21. Tripura 27 ` 2.70 (07.03.2005) - 22. Puducherry 50 ` 5.00 (27.11.2007) - 23. Nagaland 100 ` 10.00 (06.08.2010) -
Source: Agenda for the Meeting with Secretaries In-charge (Consumer Affairs) & Presidents State
Commissions, pp. 57-58
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5.1.3.2 Introduction of Consumer Affairs in Curriculum
Besides the consumer clubs there is a
separate paper on the subject in the universities
and colleges especially in the faculties of
commerce, management, law, public
administration, engineering, journalism etc. with a
view to provide an insight into the subject to
students who are the future of the country.
5.1.3.3 Creation of Chair/Centers of Excellence in Institutions/Universities
a. A Chair on Consumer Law and Practice was sanctioned in 2007-08 to National School
of India University (NLSUI), Bangaluru at a cost of ` 90,00,000. The objective of the
Chair is to act as a ―Think Tank‖ for the research and policy related issues on Consumer Law and Practice.
b. A Centre of Consumer Studies was also sanctioned in 2007-08 to IIPA, New Delhi at an estimated cost of ` 850.77 lakhs spread over a period of five year for in-depth
action research in the areas of consumer protection, training of personnel engaged in administration and adjudication of consumer justice in the country, elected representative of the local bodies etc.
c. An amount of ` 94.45 lakh sanctioned to National Law Institute University, (NLIU) Bhopal for establishing Chair-Professorship in Consumer Protection and Consumer Welfare.
d. The Tamil Nadu Dr. Ambedkar Law University, Chennai has been sanctioned an amount of ` 94.45 Lakhs for creating Chair of Excellence of Consumer Law and Jurisprudence.
e. Administrative Staff College of India (ASCI) Hyderabad has been sanctioned an amount of ` 1.50 crore for setting up of the Centre for Rural Consumer Studies.
5.1.3.4 Scheme on “Promoting Involvement of Research Institutions/ Universities / Colleges in Consumer Protection and Consumer Welfare”
IIPA is also implementing Scheme on ―Promoting
Involvement of Research Institutions/ Universities/
Colleges in Consumer Protection and Consumer
Welfare‖ launched in 2004 under which research and
evaluation studies in the field of consumer welfare are
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167
being sponsored to provide solution to the practical problems being faced by consumers. A
total grant of ` 381 lakh was sanction to IIPA during the 1st phase and second phase of
the project has been sanctioned in 2009 for 3 years at a cost of ` 2.08 crores.
5.1.4 Setting up of Complaint handling/ Counselling/ Guidance Mechanism
A. National Consumer Helpline -The Department has also launched the National
Consumer Helpline in coordination with Delhi University at a cost of ` 3.13 crore.
Consumers from anywhere in the country can dial the toll free number 1800-11-4000
and seek advice in all areas of consumer interest and sort out their grievances. Delhi
University has been granted an amount of ` 378 lakh in 2010 for second phase for
extension of the National Consumer Helpline project for three years.
B. State Consumer Helplines- The department is also setting up State Consumer
Helplines in the states where the consumers can seek telephonic counselling for problems
they face relating to goods bought or services hired. This plan scheme to set up State
Consumer Helplines on similar lines as National Consumer Helpline started in 2005.
This will be a partnership effort between State and active VCOs of the States. These
helplines will extend service in the regional language of State concerned and in Hindi
and English. Eventually these State Helplines will be networked with National Consumer
Helpline so as to make use of the data base and experience already available. So far 25
states/UTs have been sanctioned funds to set up Consumer Helplines. It has been
decided to continue the scheme during the 12th Plan period.
Under this scheme each State is given a one-time non-recurring grant of ` 16-25
lakhs for setting up the helpline and recurring grant is given for next five years. From 6th year
onwards all the recurring expenditure are to be borne by the concerned States/UTs
Government. The Grant will be released only to those States that give an undertaking to run
the scheme on its own on the expiry of five years. The functioning of the scheme are as
under:-
(i) Develop an Alternate Consumer Disputes Redressal mechanism at State /UT level.
(ii) Maximum number of disputes resolved out of court.
(iii) Early resolution of complaints.
(iv) Reach out to rural consumers.
(v) Capacity building of State level VCOs.
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168
(vi) State level machinery gets experience.
(vii) Companies and service providers become more active in solving consumer disputes.
(viii) Provide service in regional language in addition to English language.
So far 26 States/UTs have been funded for setting up of State Consumer Helpline.
Two more proposals received from State of Meghalaya and Haryana are under
consideration. Despite repeated reminders, Proposals from the remaining 6 States/UTs
(Goa, Himachal Pradesh, J&K, Tripura, Chandigarh and Daman & Due) are yet to be
received. Out of 26 States, 16 States (Andhra Pradesh, Gujarat, Orissa, Chhattisgarh,
Sikkim, Mizoram, Karnataka, Tamilnadu, Kerala, West Bengal, Arunachal Pradesh, Madhya
Pradesh, Bihar, Nagaland, Maharashtra and Rajasthan) have physically set up their
helplines which are functional in their respective States. However, reports about functioning
of state helplines are yet to be received from 10 states (namely Assam, Punjab, Manipur,
Uttarakhand, Uttar Pradesh, Jharkhand, Lakshadweep, Puducherry, Dadra Nagar Haveli
and Andaman & Nicobar Island).6
Table 5.3 Grants Released under the Consumer Helpline Scheme
S.
No. Name of the
State/UT Amount
Sanctioned (In `)
Date of sanctioned
Amount released
balance 50% of Ist year recurring (in `)/date
2nd
Instalment/
date
Helpline Status
1. A.P 27,25,000 31.12.2007 Functional
2. M.P 27,25,000 31.12.2007 non functional
3. Gujarat 27,25,000 08.01.2008 5,49,148 (25.11.2010)
functional
4. Odisha 27,25,000 21.01.2008 functional
5. Chhattisgarh 24,25,000 24.01.2007
functional
6. Sikkim 21,95,000 29.7.2008 5,70,000 (12.11.2009)
11,41,616 (11.10.2010)
functional
7. Mizoram 21,95,000 15.7.2008 5,71,616 (22.02.2010)
functional
Continued..
6 Agenda for 27
th Meeting of the Central Consumer Protection Council on Nov. 16, 2012, DCA, p. 19
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Name of the State/UT
Amount Sanctioned (In `)
Date of sanctioned
Amount released balance 50% of Ist year recurring (in `)/date
2nd
Instalment/ date
Status
8. Karnataka 27,60,000 09.7.2008 11,36,616 (26.09.2011)
functional
9. Tamil Nadu 27,60,000 15.7.2008 11,36,616 (27.01.2010)
22,71,616 (7.03.2011)
functional
10. Kerala 24,10,000 17.06.2008 7,86,616 (12.02.2010)
functional
11. Lakshadweep 21,95,000 30.09.2008
Under process
12. West Bengal 16,25,000 7,85,000
29.12.2008 11.02.2009
functional
13. Arunachal Pradesh
23,96,616 16.01.2009 functional
14. Assam 24,10,000 25.02.2009 functional
15. Punjab 27,60,000 28.05.2009 Non functional
16. Bihar 27,60,000 13.08.2009 functional w.e.f. 15.10.2011
17. Nagaland 21,95,000 10.9.2009 functional w.e.f. 24.12.2011
18. Manipur 21,95,000 11.11.2009 Non functional
19. Maharashtra 27,60,000 19.02.2010 functional w.e.f. 15.09.2011
20. Rajasthan 27,60,000 15.10.2010 functional w.e.f. 15.03.2011
21. Puducherry 21,95,920 23.02.2011 Under Process
22. Uttarakand 24,10,000 9.03.2011 non functional
23. Dadra Nagar Haveli
21,95,000 30.03.2011 non functional
24. Uttar Pradesh 26,80,000 30.08.2011 non functional
25. Jharkhand 26,80,000 30.08.2011 non functional
Source: Agenda for the Meeting with Secretaries In-charge (Consumer Affairs) & Presidents State Commissions,
pp. 55-56
C. Mediation Advisory Centres-In a joint initiative of FICCI and GIZ and Department of
Consumer Affairs a Mediation Advisory Centre (MAC) is being implemented in four States
on a pilot basis. The project is at a cost of ` 58.30 lakh for setting up of Mediation Advisory
Centre under PPP model with support from Department of Consumer Affairs, GIZ and
FICCI. MAC is expected to cater to pending cases referred by consumer fora as well as new
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170
cases coming directly or through the registrar. The mediation will be done through a panel of
independent, neutral and trained mediators. This is purely a voluntary procedure.7
D. Consumer Advice Centers(CAC) - The consumer advice centers set up on pilot basis in
the four States play a decisive role as an extended arm of State Helplines and provide
consumers with up to date, reliable information and independent consultation. The consumer
advice centers in the Districts are the first point of contact for comprehensive consumer
information and independent advice. CAC assist members by ensuring high quality advice
by establishing uniform advice standards. They provide an overview of the market and help
consumers deal with complex market conditions. They also identify health and
environmental aspects that could influence purchasing decisions. 8
E. Consumer Online Resource & Empowerment (CORE) Centre Project - CORE
Centre set up by the Department is intended to provide the most scientific and effective
system of collection and dissemination of consumer related information to generate
consumer awareness and empowerment of all sections of the society. It is aimed at
identification of consumer problems and their redressal through institutional approach and
utilizing the vibrant information technology method. The project has been sanctioned with a
total budgetary outlay of ` 3.50 crore spread over a period of five years.
F. State Consumer Helpline Knowledge Resource Management Portal - The
Department had sanctioned an amount of ` 1.67 crore to IIPA for their project State
Consumer Helpline Knowledge Resource Management Portal (SCHKRMP) for coordination
and monitoring scheme on State Consumer Helplines.
5.1.5 Comparative Testing of the Products and Services
With the objective of providing consumers with informed choice while making
purchase of products and services, the Department has started Comparative Testing of the
products and services through some VCOs. A number of products and services are tested
every year and on the basis of the testing, the products/ services are ranked and evaluated.
The test reports are published in consumer magazine and newspaper to educate consumers
and help them take appropriate purchase decision. Under this scheme projects have been
sanctioned to the following:
7Report of the Working Group on Consumer Protection- Twelfth Plan (2012-17), Volume – II; Department of
Consumer Affairs, GoI, pp. 23-24 8 Ibid, p. 23
Centre for Consumer Studies, IIPA
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a) VOICE Society has been sanctioned an amount of ` 2.70 crore for undertaking 2nd phase of the Comparative Testing of products and services for 3 years. During the 2nd phase VOICE has to conduct testing of 16 products and three services.
b) ` 50 lakh sanctioned to Council for Fair Business Practice, Mumbai as one time non-recurring grant for upgrading existing Ramakrishna Bajaj testing lab in SNDT Women University, Mumbai.
c) Consumer Education Research Centre, Ahmedabad for upgradation of their testing
lab with NABL accreditation at a cost of ` 2.18 Crores.
d) CONCERT was granted an amount of ` 333.70 lac for 2 years for Comparative Testing of Products and Services. Under the project CONCERT will undertake comparative testing/ evaluation of at least 7 products and 3 services per year.
e) Government of Kerala was provided a grant-in-aid of ` 25.44 lakh for upgrading their
existing Gold Purity Testing Laboratory.
5.1.6 Consumer Grievance Redressal (CGRC) Cell
As the Department has been receiving a large number of complaints from consumers
relating to shortfall in the supplies/ expectations, defects in goods and deficiency in services;
it decided on 13.02.2002 to set up Consumer Grievance Redressal Cell (CGRC) for
providing services for redressal of the complaints of the Consumers. The Cell had received a
large number of complaints covering all such aspects from all over the country. All these
complaints were forwarded to the Consumer Coordination Council (CCC) for redressal. The
Cell itself is attending to the complaints of the important nature with the concerned
manufacturers/authorities/Departments etc. for their redressal at the earliest. The Cell and
Consumer Coordination Council forward these complaints to the concerned authorities like
bank, telecom and other companies, institutions, organizations and manufacturers etc.
to get their redressal.
5.1.7 Publicity Campaign for Creating Consumer Awareness
As empowering consumers through consumer
education and awareness is the key for the success of
consumer movement in the country, the Department has
taken up a multi-media publicity campaign ‗Jago Grahak Jago‘
in order to ensure that the message of consumer protection
reaches every citizen of the country. The Department of
Consumer Affairs has been continuing a countrywide multi-
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media awareness campaign since 2005, whereby various issues related to consumer rights
and responsibilities are highlighted. “Jago Grahak Jago” has today become a household
name. Under the campaign the Department has been releasing advertisements in National
dailies/ regional newspapers in local languages to educate the consumers about their rights
and responsibilities. Video and audio spots of 30 seconds duration on various consumer
related issues are being telecast through Doordarshan and Satellite channels and All India
Radio and Private FM stations respectively. The Department in consultation with Department
of Post has started disseminating consumer awareness messages through Meghdoot Post
cards, posters and other postal stationery items to reach far-flung rural areas including North
East States.
5.1.8 Policy of the Department to Tackle Misleading Advertisements
The Department has been concerned about the increasing menace of Misleading
Advertisements. In order to design a workable, comprehensive and enforceable framework,
the Department is holding countrywide consultations so that a consensual, strong and
effective mechanism can be decided upon. Keeping in view these lacunae in law and also
increasing incidences of misleading advertisement, the Department of Consumer Affairs
conducted exclusive seminars /workshops in different parts of the country. For this seminars
have been held for the Southern Region, Western Region, North-Eastern and Eastern
Region, Central and Northern States. In April, 2012 a National Seminar was also organized
by the Department to draw a National Policy on the issue.
The unanimous view that has emerged from these seminars/ workshops was that
there should be an agency to tackle exclusively the misleading claims in advertisements. It
was felt desirable to vest administrative powers with the Administrative Authority to initiate
proceedings, seeking cessation of a misleading advertisement in a competent forum.
Considering the above the Ministry of Consumer Affairs, Food and Public Distribution has
proposed to set up National Consumer Protection Agency (NCPA) during the 12th Plan
Period, which aims to take suo motu action for filing class action suits and enforcement
proceedings in the interest of consumer at large. 9
9 Agenda for 27
th Meeting of the Central Consumer Protection Council on Nov. 16, 2012, p. 14
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5.1.9 Role of Consumer Protection Councils in Consumer Welfare
The Consumer Protection Act, 1986
mandates for establishment of Consumer
Protection Councils at District, State and National
level, which are advisory bodies to protect and
promote the interests of consumers. The
Consumer Protection Councils are advisory
bodies, which deliberate on consumer issues and
suggest policy initiatives. They are not specifically
accountable to any particular authority.
The Central Consumer Protection Council (CCPC) is the Apex body at the
Central level headed by Hon'ble Minister of State (1/C) Consumer Affairs, Food and Public
Distribution. The Minister-in-charge of Department of Consumer Affairs in the State
concerned is the Chairman at State level while the District Collector is the Chairman of
the District Consumer Protection Council. The objects of these Councils are to protect and
promote the rights of consumers as laid down in the Consumer Protection Act, 1986. The
Act mandates that the Central Consumer Protection Council should hold atleast one
meeting every year, while the State and District Consumer Protection Councils are
mandated to hold not less than two meetings every year.
The Central Consumer Protection Council has met on 30.07.2008, 03.09.2009 and
31.01.2012 during the last five years. Although the Central Consumer Protection Council,
could not meet during 2011 due to some delay in the reconstitution process, during 2012
it has become possible to hold two meetings of the CCPC, one in January 2012 and the
second in November 2012. From the information available with the Department it is
observed that at the State and District level, the constitution/reconstitution of the
Consumer Protection Councils and holding of their regular meetings, as well as furnishing
of information in this regard to this Department, in the Quarterly Progress Reports to be
submitted on consumer protection measures, is not given adequate priority by the State
Governments. The Department related Parliamentary Standing Committee has
also commented adversely in this regard.10
10
Agenda for 27th
Meeting of the Central Consumer Protection Council on Nov. 16, 2012, p. 23
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5.2 Role of State Governments
5.2.1 Establishment of Separate Department of Consumer Affairs
The success of the consumer
movement to a large extent depends upon the
State Governments as the policies and
programmes are to be implemented by them.
An evaluation of the role of the State
Governments in empowering the consumers
reveals that consumer welfare is not a priority
area for the State Governments. Except West Bengal and Kerala no other state has an
independent Department of Consumer Affairs for the protection of consumer interests. In
West Bengal the Department was set up in 1999. The State Consumer Disputes Redressal
Commission, 21 Consumer Disputes Redressal Forums, the Directorate of Legal Metrology
and Directorate of Consumer Affairs & Fair Business Practices are functioning under this
Department. In Kerala the Government formed a separate Department of Consumer Affairs
as per the GO(MS)No.352/07/GAD dated 17-07-2007 by incorporating the Section of
Consumer Affairs under the Food & Civil Supplies Department and the Legal Metrology
Department under the Revenue Department for strengthening and coordinating the
consumer protection measures and activities in the state. The Consumer Affairs
Department, Government of Kerala, Thiruvananthapuram is responsible for the formulation
and monitoring of schemes on Consumer Protection in the State, and strengthening of the
consumer movement, apart from implementing the policies and programmes of the Central
Government. Non-existence of an independent Department of Consumer Affairs is the
genesis of the problems. Food and Civil Supplies is a major activity in the State. The
Department has to deal with procurement and PDS which hardly leaves any time and
manpower to deal with Consumer Affairs. In the sampled states most of the officials agreed
that there is a need to set up a separate Department of Consumer Affairs.
As there is no major budget allocation for consumer affairs by the state governments
the major dependence is on grants from the central government. State Consumer Welfare
Fund (CWF) has been set up, rules have been framed but no visual activity has been
undertaken so far. Therefore, very few activities are undertaken to empower the consumers.
Publicity material and literature does not exist and the ones which are available are old and
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out-dated printed on newsprint. During the survey no hoarding in any of the States was seen
put up in public places. Even the schemes like setting up of Consumer Clubs has almost
come to a halt as no funds are available to the existing clubs in the schools. The consumer
clubs in schools are good institutional mechanism to involve the youth, particularly the
school children in the consumer movement. Though the States have also set up Consumer
Welfare Fund (CWF) but not many activities are being funded.
5.2.2 Role in Functioning of Quasi-Judicial Machinery
The State Commission and the District Forums are totally dependent on the State
Governments. The appointments to these redressal agencies are delayed. Sometimes the
vacancies exist for more than a year, which only defeats the very purpose of the Act. At
times the recommendations of the selection committee are kept pending for a very long time.
This results in delay and the pendency of cases increase.
Table 5.4
Current Occupancy/Position of the Presidents and Members of Surveyed SCDRCs
President Members Female Members
Gujarat Sanctioned Post 1 7 1
Vacant Post 2
Karnataka Sanctioned Post 1 1 1
Vacant Post 1
Odisha Sanctioned Post
1 (Dismissed by State but stayed by SC)
1 (Medically unfit)
1
Vacant Post 0 0
Tripura Sanctioned Post 1 1 1
Vacant Post 0 0 0
U.P Sanctioned Post 1 9 1
Vacant Post 1 5 1 Source: Concerned SCDRF‟s Office
No adequate manpower and infrastructure facilities are provided to these institutions
by the State Governments. At places even the land for construction is not made available by
the State Governments. The Karnataka State Commission even today functions from a
cramped rented building which lacks even basic facilities. The court rooms are inadequate
and the records are piled and dumped due to lack of space. The Odisha State Commission
functions from Cuttack and not from Bhubaneswar the State capital.
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Table 5.5
Current Occupancy/Position of Presidents and Members of Surveyed District Forums
State DCDRF
Post President Member Female Member
Gujarat Junagadh Sanctioned Post 1 1 1
Vacant Post Vacant
Surat (Main) Sanctioned Post 1 1 1
Vacant Post
Karnataka Rural Bangalore
Sanctioned Post 1 1 1
Vacant Post Vacant
Shimoga Sanctioned Post 1 1 1
Vacant Post
Odisha Balasore Sanctioned Post 1 1 1
Vacant Post
Puri Sanctioned Post 1 1 1
Vacant Post
Tripura West Tripura Sanctioned Post 1 1 1
Vacant Post
South Tripura
Sanctioned Post 1 1 1
Vacant Post
U.P. Meerut Sanctioned Post 1 1 1
Vacant Post
Azamgarh Sanctioned Post 1 1 1
Vacant Post Source: Concerned SCDRF‟s Office
5.2.3 Role of Consumer Protection Councils in Consumer Welfare
The formation of the State and District
Councils is mandatory and the objective is the
same as that of the Act. The Act provides for
the establishment of the Consumer Protection
Councils at Central, State and District levels.
The responsibility for setting up the State
Consumer Protection Councils (SCPCs) and
District Consumer Protection Councils (DCPCs) rests with the State Governments. The
objectives of these councils are to help the respective governments in adopting and
reviewing policies for promoting and protecting the rights of the consumers. The Councils
will also advice on the steps to be taken to keep consumers informed about quality, quantity,
potency, purity, price and standards of goods and services. The citizens and organizations
representing different interest groups and having concern for consumer‘s rights protection
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are members of these councils. The main objective of these councils is to promote and
protect rights and interests of consumers in the society.
This consultative mechanism envisaged under the Act hardly exists in the States.
Even where they have been constituted / reconstituted it has been done just to fulfill the
statutory requirements. The District Forums and the State Commissions are not associated
with these bodies. The District Magistrate/ Collector hardly finds time to commence or attend
these meetings. It has by and large remained a ritual exercise. In Odisha in 2008 the Orissa
Consumers‘ Association (OCA)
moved the High Court to direct the
State Government to constitute the
Consumer Councils. On October 27,
2008, the Odisha High Court had
directed the state government for
implementing sections 7 and 8 (a) of
the Consumer Protection Act that
provided for establishment of State
Consumer Protection Council and District Consumer Protection Councils. In 2011 again the
Orissa Consumers Association initiated contempt proceedings against the Secretary,
Consumer Affairs for not constituting the councils. Though later on the order was complied
with but no regular meetings of the district councils have been held so far, except in the case
of Nabarangpur District Council even though the Act mandates that not less than two
meetings in a year should be held. Although councils for Angul, Balangir, Dhenkanal, and
Rayagada districts were constituted in 2008, no meetings of these councils had taken place.
As a result the purpose of the district consumer protection councils has been defeated
because of negligence and inaction of the state government. Rights and interests of the
consumers are not being protected and they are being exploited and cheated by traders,
manufacturers and service providers. The table 5.6 gives the status of the Consumer
Protection Councils in the states and table 5.7 provides the functioning of the councils in the
states selected for the study.
There is need to accord due importance to this issue by the State Governments and
ensure that the Consumer Protection Councils both at State and District levels are
constituted/reconstituted and hold meetings regularly to deliberate and give their
suggestions /recommendations on important issues in the interest of consumers at large.
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Table 5.6 Constitution of SCPCs/DCPCs in the States
As on 31.03.2011
Sl. No. Name of States/UTs SCPCs DCPCs
1. A & N Islands Constituted Constituted in both Districts. 2. Andhra Pradesh Constituted Constituted in 7 out of 23
Districts 3. Arunachal Pradesh Constituted Constituted
4. Assam Not Constituted Not Constituted
5. Bihar Not constituted Not constituted
6. Chandigarh Not given Not given
7. Chhattisgarh Not given Constituted in 16 out of18 Districts 8. D &N Haveli Constituted Constituted
9. Daman&Diu Constituted Constituted
10. Delhi Information is not given
11. Goa Constituted Constituted
12. Gujarat Constituted Constituted in all25 Districts
13. Haryana Information is not given by the State Govt.
14. Himachal Pradesh Constituted Constituted
15. Jammu& Kashmir Not Constituted Not given
16. Jharkhand Not Constituted Not Constituted
17. Karnataka Constituted Constituted
18. Kerala Constituted Constituted
19. Lakshadweep Constituted Constituted
20. Madhya Pradesh Under consideration by State Govt.
21. Maharashtra Constituted Constituted in 2 out of 35 Districts 22. Manipur Constituted Not constituted.
23. Meghalaya Constituted Constituted
24. Mizoram Constituted Constituted
25. Nagaland Constituted Constituted
26. Odisha Constituted Constituted
27. Puducherry Constituted Constituted
28. Punjab NA
29. Rajasthan NA
30. Sikkim NA
31 Tamil Nadu NA
32. Tripura Constituted Not constituted
33. Uttarakhand Not intimated Not intimated
34 Uttar Pradesh Information is not given by the State Govt.
35 West Bengal Constituted Constituted
Source: Report of the Working Group on Consumer Protection 12th Plan – (2012-17), Vol. II, pp. 54-55
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Table 5.7 Current Status of State Consumer Protection Councils & District Consumer
Protection Councils of the Selected States/Districts
SCPC/ DCPC
Year of Constitution
First Time
Number of Meeting Held Till
Now
Present Status Constituted/Non-
Constituted
If not when it was
constituted last time?
Gujarat
SCPC
1998 9 Re- Constituted, DT. 8-10.2009
Junagadh DCPC 2011-12 NIL Junagadh DCPC was formed on 17-
01-12
Surat (Addl) DCPC 2010-11 2 -First Meeting was held on 19-3-2011 -Second meeting was held on 21-3-2012
Karnataka
SCPC
1993 No Information
Not Constituted No Information
Bangalore (Rural) DCPC
2011 - Constituted
Shimoga DCPC 2011 - Constituted
Odisha
SCPC
2005 14 Constituted
Balashore DCPC 2010 1 Constituted -
Puri DCPC 2010 1 Constituted -
Tripura
SCPC
1991 21 Constituted
Balashore DCPC 2011 1 Constituted
Puri DCPC 2011 1 Constituted
Uttar Pradesh
SCPC
14.03.1997 Nil Constituted 27.08.2009
27.08.2009
Azamgarh DCPC No Information No Information
No Information No Information
Meerut DCPC No Information No Information
No Information No Information
Source: Department of Civil Supply of Concerned States and Directorate Office of Concerned Districts
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5.2.4 Consumer Awareness Initiatives in the States
The major stakeholder in the consumer movement is the State Government which
has the responsibility of implementing the Act, setting up district forums and creating
awareness. The State Governments have to device ways and means to educate the
consumers. The best way to protect the consumers is to empower them about their rights
and responsibilities.
The National Consumer Day needs to be celebrated in a befitting manner. The
National Consumer Day is celebrated more as a ritual without the involvement of various
sections of the society. No extra efforts are made to boost awareness and educate the
consumers. In fact in all the sampled states the Presidents and Members said that they were
not invited by the District Administration to attend the National Consumer Day programmes
organised in their district. Isolated activities are going on which hardly address or meet the
needs of the consumers. Therefore, most of the State Governments are indifferent towards
the needs of the consumers.
The State Governments have not incorporated consumer protection in the school
curriculum which is the need of the hour. At the State level there is no converge of various
stakeholders resulting into a total collapse of consumer related activities. Most of the states
have availed funds for setting up the state helplines but only few have set it up.
5.3 Role of Civil Society in Consumer Protection
The government is basically power oriented whereas business sector tries to
maximize profit. In such situation the role civil society actors becomes important and
paramount. The civil society, which includes class organizations, educational organizations,
non-profit non-government organizations (NGOs), media etc., can not only play an important
role in protecting people's rights and interests but also can be a major contributor in
educating the masses regarding their rights. If the civil society is strong the government will
try to become more democratic and people's welfare oriented. Similarly the business sector
will also become more responsible and sensitive. Therefore, civil society including NGOs is
inseparable component of the democratic society.
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Table 5.8 Consumer Awareness Activities in the Selected States
State
Activities ADR Awareness Programme Publication VCOs/ Consumer Club Financial Aid
Gujarat State Consumer Day on 25 June, 15 September
Observe National Consumer Day, World Consumer Rights Day
Advertisement campaign through hoarding in Urban, Rural areas and on Railway Passenger Coaches in Western Railway, State Transport Depots
17 District Consumer Information Centre (DICs)
Toll free State Consumer Helpline in collaboration with CERC
In the year 2010-11 „INSIGHT‟ magazine was published by the CERC in both English and Gujarati language
State Government has published Pamphlets, Banners, Posters, CD and Booklets on various subjects of Consumer awareness.
Upto the year 2000 the state Government had approved 30 VCOs.
From 2001 to 2011 30 more VCOs have been approved.
In year 2011-12 State Government has established 1000 consumer clubs in Hr Secondary Schools and Colleges in all districts. In 2012-13 more consumer clubs will be created
` 58.38 lacs given to
VCOs from 2008-2012
State Government gives aid to approved VCOs as under
(i) Taluka level VCOs- ` 600000
(ii) District level VCOs- ` 80,000
(iii) Municipal Corporation Level VCOs- ` 1,00,000
(iv) ` 5000/ Consumer
Club (v) ` 5 lac for each DIC
In July 2004 the State Government of Gujarat amalgamated the Director of Consumer Affairs with the office of the Controller of Legal Metrology which looks after consumer mediation. If mediation could not reach at an agreement then case is forwarded to District Consumer Forum.
Karnataka Observe National Consumer Day, World Consumer Rights Day
State Government has published Pamphlets, Banners, Posters, and Booklets on various subjects of Consumer awareness
Source: Department of Civil Supply of Concerned States and Directorate Office of Concerned Districts
Continue…….
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Consumer Awareness Activities in the Selected States
State
Activities ADR
Awareness Programme Publication VCOs/ Consumer Club Financial Aid
Odisha Observe National Consumer Day, World Consumer Rights Day
Chetana Rath at district level as part of awareness programme.
Awareness campaign through Hoarding & leaflet etc.
Total fund released in 2011-12- `
5463000
No ADR available
Tripura Observe National Consumer Day, World Consumer Rights Day
20 out door hoarding at various places during 2010-11
One day Workshop on Protection of rights of consumer at Agartala on 4
th July 2010
Display Advertisement in local Newspapers
Audio-video advertisement on local cable channels
Seminar on consumer protection
Essay and Speech Competition at State level, Block level and Nager Panchayat level
State Government has published Pamphlets, Banners, Posters, and Booklets on various subjects of Consumer awareness
Total fund involved in 2010-11 – ` 10, 05,
389 and 2011-12 – `
8,24,320
No ADR available
U.P Observe National Consumer Day, World Consumer Rights Day
Toll fee number (18001805512) is there for consumer awareness and complaint redressal
Awareness campaign through TV (ETV), Radio, Print media advertisement
Weight s& Measures department has published Pamphlets, Banners, Posters, and Booklets on various subjects of Consumer awareness
Consumer Welfare Fund has been formed with total ` 1 crore. The fund
is distributed from State CWF to VCOs/NGOs to accelerate Consumer awareness movement in the states.
Not available No ADR available
Source: Department of Civil Supply of Concerned States and Directorate Office of Concerned Districts
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5.3.1 Role of VCOs/ NGOs in Consumer Protection and Consumer Welfare
The existence of NGOs is intimately linked with democracy and democracy has
provided an opportunity and free hand to NGOs, to play an effective role in many people
oriented programs such as health, family planning, environment and non -formal education
and consumer welfare is one of these. The main mission for the NGOs/VCOs should be to
provide service to the most
vulnerable sections of the
society to make them
empowered, capable and
organized, so that they
become able to defend their
rights and to enhance their
quality of life and living
standard. They are required to
go where the government is
not adequately reaching and
the areas where the
government has not paid
adequate attention. Their objective is not to substitute the government but to show the
example of service to draw attention of the responsible agencies and to help the local people
to be self-reliant.
The utility of Voluntary Consumer Organisations (VCOs) in the area of consumer
protection is second to none by virtue of their operational domain at the grassroots level.
They are useful in many ways. They can effectively contribute in promotion and propagation
of the programmes and schemes relating to consumer education and awareness especially
in rural areas. Thus they can play the role of the catalyst in generating consumer awareness.
They can also help the consumers in filing complaints in the consumer foras or can take up
the issues which affect the consumers in general. They can be very effective in dealing with
the menace of hazardous products, spurious goods and can take up such complaints before
the quasi-judicial machinery. These organizations can through specialised activities such as
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comparative testing of consumer products can disseminate information regarding products
and services which can be very helpful for the consumers.
Development of Consumer Organizations in India
The development of organizations1 involved in the consumer movement had its
beginning in the early 20th Century. The first known collective body of consumers in India
known as ‗Passengers and Traffic Relief Association‘ (PATRA) was set up in 1915 in
Bombay with a view to ameliorate the hardship and trouble faced by the passengers
travelling by railways and streamers and to redress the grievances of the Indian trading
community. Though this organization planned to be a social organization with national
outlook and character, however, it
represented only the problems
faced by Bombay commuters and
not the rest of the country. Another
organization which started in 1915
was Women Graduate Union
(WGU) based in Bombay. The
principal objects of the organization
were to provide opportunities and
facilities for the expression of united
opinion and concerted action by
University women for the benefit
and welfare of the members of all or any class or community of women. In 1917 pioneer
women‘s organization known as ‗Women Indian Association‘ was started by Dr. Anne
Besant and Mrs. Margaret Cousins in Madras. The primary objective was to bring together
the women and girls of the middle class families who were spending time without any
purpose and were involved in some cottage industry. In the post independent India the
association concentrated on welfare programmes for women and children broadening the
scope of their activities. The earlier consumer associations were mainly localized with
restricted aims. The ‗Indian Association of Consumer‘ (IAC), an all India association, was set
up in Delhi with government support to forward consumer interest.
1 For details see P.D. Mukherjee and Pritee Shah, Emergence and Formation of Consumer Groups- A
Perspective, CERC, 1992
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The sixties was a unique period in the history of consumer movement when the old
systems were being questioned and foundation for new, better and efficient order was being
laid. During the period a number of voluntary consumer organizations were founded. These
included organizations like Gayatri Charitable Trust in Gujarat, Jyoti Sangh Grahak
Suraksha Vibhag (1962) in Ahmedabad, Bombay Civil Trust (1963) in Bombay, etc. The
problem with the early consumer organizations were that they only offered advice, voiced
feeble protests, held discussions, seminars, conferences or asked questions for which no
answers were forthcoming. This resulted in status quo or at times the situation worsened.
The first organization to really make an impact was Consumer Guidance Society which was
started in 1966 by nine housewives to fight the black marketing and food adulteration which
was rampant due to the scarcity of the essential commodities and goods during that time.
They made an impact by testing the quality of items of daily use of food stuff such as milk,
oil, tea, condiments etc. The test reports created a stir among traders as well as civic and
government quarters. The next move CGSI made was to handle complaints from consumers
on individual basis. CGSI has various wings to look into complaints, publicity and exhibitions,
education and testing, etc.
A number of specific associations
were also formed during the period to deal
particular problems which consumers
experience vis-à-vis a particular service.
Baroda Citizen Council was formed in 1966 to
cooperate with the local body, voluntary and
government agencies in tackling city level
problems especially of economically and
socially weaker sections of society. Another
organization which evolved because of similar circumstances was ‗All-India Bank Depositors
Association‘ (AIBDA) in 1968 first in Calcutta and then in Bombay. AIBDA continuously
worked with the bank‘s management, the RBI and the Finance Ministry and also worked
towards educating depositors. In 1969, the ‗Surat Consumer Association‘ was formed to
work in the areas of consumer advocacy, environment, food adulteration, health, legal
redress, misleading advertisements, share market/ investment counseling and handling
complaints before MRTP Commission. In this decade only one organization made an impact
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nationally and internationally that is CGSI. However, in certain pockets of society the
consumers were starting to become aware and would not accept things lying down.
The consumer movement was spreading its roots during the 70s and early 80s and
so were consumer organizations. The second consumer organization which made an impact
in making the cause of the consumers known throughout the country was Karnataka
Consumer Service Society (KCSS) which was started by ten housewives in 1970 and based
in Bangalore. Unlike most organizations which were started because the founders were
dissatisfied with the a particular situation, product or service; the KCSS was started to
spread the word of movement throughout the country especially among the government
circles at the time when the word ‗consumer‘ was not very familiar to many. Another
pioneering organization Visaka Consumers Council (VCC) was started in 1973, in
Vishakapatanam in Andhra Pradesh. It started not only to fight against the unscrupulous
traders and manufacturers but also to represent the plight of the poor ration card holders
and the LPG gas users. VCC‘s approach was unique and effective; to deal with the problem
of ration card holders. They conducted pubic meetings to voice their grievances, followed by
press releases and survey of card holders. They also used selected elected representatives
to pose questions to the government and to accept the stand of consumers.
The Akhil Bhartiya Grahak Panchayat was started in 1974 in Poona to wage war
against exploitation by the traders. Their system of functioning was unique as the members
of ABGP decided to use the same quality and type of product. Another innovative scheme
that ABGP started was a ‗Grahak Sangh‘ which has been quite successful in Bombay. Here
the Mumbai Grahak Panchayat branched off from ABGP in 1979. The MGP while continuing
grahak sanghs has broadened its scope of activities related to consumer welfare and has
started the consumer guidance cells. Trichy District Consumer Council registered in 1976
has large network of branches in rural areas. Another significant organization fighting for the
rights of the consumers is Consumer Education and Research Centre (CERC) started in
Ahmedabad in 1978 by Prof. Manubhai Shah and Prof. Ramesh Bhatt. CERC took the
matters of unprotected and vulnerable consumers to courts and took up the public interest
causes to vindicate the rights of consumers. CERC moved on to the methods of intervention,
representation and administrative advocacy by associating itself with the special
committees. The organization took up the cause of consumers with manufacturers‘
associations, FICCI, Council for Fair Business Practice etc. to curb consumer exploitation
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and help lay down standards in business. Finding that the consumer movement is
handicapped without comparative testing of products, CERC also set up a product testing
laboratory at Ahmedabad.
The eighties saw all sorts of people starting consumer organization, but still there
were activists and organizations with sincere interest in consumer cause and had done a lot
of work to ameliorate the plight of gullible consumers. Jagrut Grahak one such association
based in Baroda, Gujarat was started in 1980 by ten retired professionals to concertedly
work in ―the gigantic task of consumer protection and enlightenment under difficult conditions
and circumstances‖. They help consumers with their problems mostly through ―negotiations,
persuasion and compromise‖. However, if consumers‘ interests demand confrontation,
Jagrut Grahak would not falter or shy away from a challenge.
Another important organization Consumers Forum started in 1980 in a small town
Udupi in South Karnataka. In the first few years most of the complaints were against
government offices, not against the erring traders and the public utilities. Only after the
Consumer Protection Act, 1986 was enacted consumers complained against traders. During
the same period the Voluntary Organisation in the Interest of Consumer Education (VOICE)
was founded when angry young students and teachers of the Delhi University could no
longer stand the way consumers were being cheated and fooled by, not merely small
companies but also by corporate giants. They, therefore, ―took on‖ companies individually in
protest against unfair trade practice. They also went about giving consumers information
about the benefits or shortcomings of various products and brands which would give the
consumer the edge over the seller, so that he could make an informed choice. VOICE is also
conducting comparative testing of products. It systematically buys consumer products in
markets and tests them in laboratories. The results of such technical testing are then
published in its magazine in a form easily understood by consumers.
The Consumer Unity and Trust Society (CUTS), which started in Jaipur, Rajasthan,
in March 1984, made its impact, by effectively making use of the media and through
publicity. It also engages itself in consumer education, complaints handling and litigation.
The strategy adopted is to make aware the reading/viewing public about the plight of the
hapless consumer, especially when bodies such as the municipal corporations, do nothing to
remedy the situation. Consumer Guidance Society of Jamshedpur was founded in 1984. The
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activities of the organization are to inform, educate and organize consumers so as to enable
them to protect their interests and assert their rights as consumers. It also includes visits to
the weekly ‗Village Bazaar‘ to educate the consumers about short-weight, adulteration and
over pricing. CGSJ has been distributing literature in Hindi, educating consumers about their
rights from time to time. The Consumer Action Group (CAG) based at Madras was founded
in 1985. Most of the issues that the CAG tackled since its formation were concerning civic
amenities, health and environment.
While there have been groups of consumer activists who have banded together to be
able to address the issues and problems that consumers face, there are a few who felt that
they can work for the consumer cause on their own. While there are many who in their own
capacity have shown that not all consumers are docile, meekly accepting their lot, that there
are some who continue to push forward the cause and, though working individually, are
considered forces to be reckoned with where consumer issues are concerned. Mr. H.D.
Shourie, who was the Director of Common Cause, based at Delhi, was well-known in
consumer circles as an incorrigible litigant. He did it primarily through his pen as well as
taking up most of the problems and issues to the courts. Among other things, he persistently
brought up the fact that the governments of the various States in the country had not
followed the provisions of the Consumer Protection Act, 1986, even three years after its
passing. It was the writ petition submitted by the Common Cause which made the Supreme
Court in September 1989, take serious note of the omission on the part of the States and the
Union Territories and directed that the quasi-judicial machinery provided for in the Act should
be forthwith established and report submitted within a period of six weeks.
Since the movement in India started picking up in the nineteen seventies, consumer
organizations, have always felt that there were benefits in numbers. In 1974 at the Second
All India Consumer Conference it was stated that ―A time has come for the consumer
organizations in India, not only to work in small groups but to work with the help and
guidance of a ‗Central Agency‘ so that Indian Consumers can organize and voice their
opinion to the government.‖ However, the central agency could not take off for quite long
time because of the technicalities involved in it. It was only in March 1990 Federation of
Consumer Organisations, Tamil Nadu (FEDCOT) was established. The idea to form a
federation was basically to bring together as many consumer groups as possible in Tamil
Nadu under one umbrella. The Confederation of Indian Consumer Organisations (CICO)
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was formed in February, 1991 in the Second National Convention of Consumer Activists
held in Delhi. Consumer groups of Gujarat joined hands to form a federation Gujarat State
Federation of Consumer Organisation (GUSFECO). Many NGOs in India are also part of
International Organisation of Consumer Union (IOCU), a federation of consumer
organizations dedicated to the protection and promotion of consumer rights worldwide.
However, at present these organizations are riddled with many problems. They lack
both functionaries and finances. Further there is need for accreditation and
professionalization of VCOs to raise their credibility. These VCOs should attract and involve
professionally qualified people, retain them and motivate them to work for community. There
is also need for creating some mechanism to identify credible VCOs which if supported
could effectively contribute toward strengthening the consumer protection. Training and skill
development of those who are working with VCOs will no doubt make them more effective to
take up the cause of consumers.
5.3.2 Role of Educational Institutions in Consumer Protection
In today‘s market economy there is an increased demand for formal instructions in
consumer education at school and college level. Ideally, consumer education helps to
correct the problem of economic disadvantage in the marketplace by showing persons how
to evaluate their needs and resources and then make an informed purchase in the
marketplace. Consumer education programs in the secondary schools are important to
change students‘ attitude toward marketplace. The key purpose and objectives are to help
prepare our young people to take their place in the community as responsible and thoughtful
consumer citizens.
One of the major problems that is observed in the field of consumer education is that
is not an established, separate discipline like Math, English or History. Consumer education,
where it is taught, is all too frequently a second or third priority of the teacher. There are very
few teachers who have consumer education as their primary responsibility and their primary
interest. Can this be changed? For this it is very important that consumer education
becomes a required course.
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Consumer education needs
to include the obvious subject
areas such as money
management, insurance, credit,
buymanship, investments, and
shelter. In addition other areas that
should be considered deal with our
value systems, our responsibilities
as citizen consumers, an
understanding of our economic
system, and an understanding of
our selves – Why do we buy? What we do? What are the pressures we feel that influence us
in our buying habits from our peers, from those whom we look up to, and from the
advertising industry? Further the consumer education should also include areas of
consumption that have moral overtones. A consumer educator has a responsibility to
discuss with his or her students products and services which represent wealth – goods and
services that promote consumer well-being; nealth – goods and services that have a neutral
effect; and illth – those goods and services that have a negative effect on consumers.2
In the area of changes and recommendations in the teaching of consumer education,
there is need to place emphasis upon the consumer as a whole person instead of just
educating him or her as a consumer buyer. There is so much more to the consumer role
than just buying, and each consumer needs to know that he or she has rights and also
responsibilities; that the consumer does not operate in a vacuum, but is a part of a
community, a nation, and the world, and that the consumer should be a part of and not apart
from the marketplace, the economy, and the political arena. We should be educating
consumer citizens. If these kinds of goals and objectives are aspired to by a larger and
larger number of our young people as they go through high school, we should see
improvements in them not only in their role as consumers, but also in their role as consumer
citizens.
2 Lee, Stewart M., and Mel J. Zelenak, Economics for Consumers, 1982, Wadsworth Publishing Co., Belmont,
California quoted in Stewart M. Lee, ―A Perspective on the Teaching of Consumer Education‖, the Journal of Consumer Education, Vol. 2, 1984, pp. 1-4
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5.4 Business and Trade initiatives
The trade and business also have an important role to play in consumer protection.
Businesses are responsible to their consumers based on the contract implied by trade and
potential harm that can be done to the public. The business also has some moral and ethical
obligations towards their customers particularly in the areas which affect the consumers.
Companies must be honest with customers and sell products that are adequately safe.
Every theory of justice will forbid coercive and deceptive trade. Businesses must give us
what we pay for and people should not be deceived about what they are buying. Businesses
must not harm anyone, including consumers. At one point of time consumers might have
been able to assess the quality of products and services they bought on their own, but that is
no longer the case. Product safety is an ethical obligation insofar as companies have a duty
to provide consumers with whatever it is they pay for and products are assumed to be safe
for ordinary use. Products must either conform to reasonable customer expectations or to
the explicit claims made about it.
Customers have a right to know as to what products they are purchasing. Advertising
and product labelling are both very important because it is the potential customer‘s primary
source of information, and companies have responsibilities to everyone who could be
harmed by their advertising. Despite a customer‘s right to know what they are buying,
companies often lie or prefer for their products to remain a mystery. Advertisements
suppress information that customers should know about or pass wrong information to them
which is morally wrong. Advertisements that manipulate consumers to buy products aren‘t
just disrespectful, but could cause materialism or physical harm to the consumers. It‘s not
entirely clear when advertising is overly deceptive or how much harm manipulative
advertising does to people. However, it seems reasonable to think that it is morally
preferable for companies to be honest and reject manipulative practices whenever it‘s
unclear how much harm it could cause. It‘s better to be safe while dealing with the well-being
of people.
Involvement of Trade/Industries in Consumer Welfare
Federation of Indian Chamber of Commerce and Industries(FICCI) has been
sanctioned a grant of ` 356 lakhs for establishment of FICCI Alliance for Consumer
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Care (FACC) for setting up of a mechanism and providing platform for facilitating prompt
redressal of consumer complaint through voluntary self-regulation of consumer
education. A dedicated Center called ‗FICCI Alliance for Consumer Care' was set up by a
Memorandum of Understanding signed between Department of Consumer Affairs, Ministry
of Consumer Affairs, Food and Public Distribution and the Federation of Indian Chambers of
Commerce and Industry (FICCI) in December 2006 on the occasion of the National
Consumer Day. This public private partnership center will work for promoting and fostering
the highest ethical relationship between the consumer and the business community. One of
the salient features of the centre is providing transparent, efficient and prompt online and
physical services. This will include information sharing, complaint redressal and promotion of
responsible business.
FICCI is also involved in the
pilot project on mediation advisory
centres which is a collaborative effort
between Department of Consumer
Affairs, Government of India, FICCI
and GIZ. Under the project mediation
advisory centres have been set up at
Bhopal, Bhubaneswar and Chennai.
They have also trained 30 mediators
from each location in mediation skills, who have been working in these centres for the last
few months. Cases from real estate, domestic goods, banking, telecom and educational
sectors are being settled by mediation as an alternate to traditional court disputes. The idea
of the project is to have voluntary compliance with the agreement and reduces strain on
legal bodies as it is better for those involved in conflict to resolve their disputes in
accordance with their own interests rather than have a solution imposed by a court of law.3
3 “Mediation to Solve Consumer Disputes”, The New Indian Express, Nov 08, 2012, http://www.ficci.com/ficci-in-
news-page.asp?nid=6565
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CHAPTER VI
FINDINGS AND RECOMMENDATIONS
6.1 Major Observations
1. The study reveals that the Consumer Protection Act, 1986 had limited impact on consumer empowerment mainly due to lack of awareness about the Act and its provisions. Comparatively the impact has been more on males than females. The urban consumers are much more aware about the Act than their rural counterparts. It is also evident that higher the age group more the awareness about the Act and its provisions. Similarly higher the education level and income level more the awareness about the Act.
2. The Act has much less impact on the marginalised sections of the society who lack education and are living in the rural areas with low level of income.
3. The awareness level about the Consumer Protection Act and Consumer Rights is higher in areas where consumer clubs have been set up in schools and colleges and are actively involved in consumer activities.
4. The limited impact and the ineffectiveness of the Consumer Protection Act, 1986 to a large extent is not due to inadequacy of the law or its provisions but it is due to the poor implementation of the Act and the apathy of the governments and other stakeholders including the consumers.
5. The effectiveness of the Consumer Protection Act is marginal as far as redressal of consumer complaints is concerned. The District Forums to a very large extent are not able to deliver justice quickly and in a cost effective manner as envisaged under the Act and therefore, consumers are losing faith in the redressal mechanism at the District level. Moreover, the compensation awarded is so small that there is apathy among the consumers to file complaints in the district forums as the time and cost factor does not favour the consumer. Timely complaint redressal is the key to success of the CP Act.
6. There is a broad consensus among the various stakeholders that the delay in disposal of cases is largely due to the involvement and appearance of lawyers in all cases. Because of this the proceedings have become too technical, cumbersome, and expensive as slowly the procedures of the civil court have crept in the proceedings of the District Forums.
7. The District Forums to a large extent lack the capacity to deliver speedy justice due to lack of adequate infrastructure, poor management of records, shortage of manpower and the required skill and knowledge of the members manning the District Forums.
8. The delay in filling up of the vacancies at all the three levels of the redressal mechanism has further added to the problem leading to large pendency of complaints.
9. Computerization of the redressal agencies/mechanism should have helped in better management of data and thereby bringing greater efficiency in the working of the redressal agencies. The impact of computerization has been lacklustre due
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to lack of computer skills among the members of the redressal agencies, shortage of technical manpower and consumer peripherals, inadequate bandwidth leading to poor internet connectivity and also irregular power supply. This has led to delay in disposal of complaints and the Consumer Protection Act has not been very effective in protecting consumer interests in the country.
10. Consumer welfare does not seem to be a priority area for the State Governments as there is no separate Department of Consumer Affairs in the states and it has been merged with Food and Civil Supplies Department. As a result of this the line department dealing exclusively with consumer affairs down to the village level does not exist. The Civil Supplies officers are too over worked with PDS.
11. No specific policies/ strategies have been framed by the state governments on consumer protection. No serious and meaningful effort is made by the state governments to educate the consumers. Enormous delay takes place in filling up the vacancies in the District Forums/State Commissions and also in providing infrastructure. State governments mainly depend on the grants from the central government. In a federal polity unless the state governments give importance to consumer welfare, not much can be achieved.
12. The Consumer Protection Councils at the District and the State level have largely not been constituted. Even where they have been constituted after a long delay, they have remained dysfunctional and purposeless and the meetings are just a formality and a ritual without any worthwhile agenda.
13. The Central Government has to play a much more proactive role as far as consumer welfare is concerned. In the present scenario central allocation to states and various other organizations has to be increased with timely release of funds to sustain the programmes. Specific programmes have limited impact. At present there are no specific long term policies to strengthen the consumer movement. There is a need to reorient policies and strategies to make them much more effective.
14. The VCOs are major stakeholders in the consumer movement but they lack both capacity and credibility. The consumers to a large extent do not have faith in these organisations. In each State there are hundreds of such VCOs claiming to be representing consumer‘s interest. However, only a handful of these have emerged as competent professional bodies working for consumer welfare.
15. There is no incentive for VCOs to take up consumer complaints; therefore, very few cases are being filed by the VCOs on behalf of the consumers. Moreover, the compensation awarded to the consumers is so small that consumers are not encouraged to file cases. The time and cost factor dissuades the consumers from approaching the forums for redressal of their complaints.
6.2 Major Findings 6.2.1 Impact of Consumer Protection Act
1. The sample size of the consumer respondents is 2100 spread across ten districts in five states of U.P, Odisha, Karnataka, Gujarat and Tripura, 73.6 percent are males
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and 26.4 percent are female respondents. 35 percent of the consumers are less than 30 years of age, 26.1 percent are in the age group of 30-40 years, 20.5 percent between 40-50 years of age and 18.4 percent of the respondents are above 50 years of age.
2. 29.7 percent are associated with agriculture, 18.8 percent are traders/
manufacturers/ small businessmen, 15.8 percent are students, 12.7 percent are housewives and 11.5 percent are teachers. 60.2 percent of the respondents had an annual income of less than ` 50,000, 14.8 percent between ` 50,000- 1 lakh, 12.1
percent had income between ` 1-2 lakh, 10.2 percent of them had an annual income between ` 2-5 lakh and 2.3 percent were in above 5 lakh annual income category.
3. Only 25.2 percent of the consumers always enquire about the terms and conditions
before making a purchase, 40.3 percent do it sometimes. 26.9 percent always enquire about the available choices, 31.8 percent always enquire about the contents of the product. However, 57.1 percent of the respondents always enquire about the price and 50.8 percent always see the expiry date.
4. Only 26.0 percent of the respondents always insist on the cash memo/ bill after
making a purchase. 41.9 percent ask for it sometimes and 32.1 percent never ask for the purchase memo/ bill.
5. 70.6 percent of the respondents are aware about the MRP and 48.0 percent know
that one can bargain on MRP and get the product for a lesser value.
6. 70.5 percent of the consumer respondents know about ISI mark, 41.3 percent are aware about AGMARK, 47.2 percent know Hallmark, only 16.0 percent can recognise FPO mark, 9.6 percent know about BEE logo, 7.1 percent about Eco-mark, 32 percent know about ISO and 39.7 percent know about Veg. /Non Veg. marking.
7. Consumers are exploited in various forms in the market. 55.4 percent of the
respondents have experienced adulteration, 47.4 percent short weighing, 50.1 percent have been victim of overcharging, 43.4 percent had received poor quality product, 35.3 percent had deficiency in services, 41.2 percent had an experience of defective goods and 36.8 percent of the respondents are victims of false information.
8. Out of those who had experienced some form of exploitation 43.7 percent of them
ignored the problem and took no action, 41.7 percent tried to get the price/return the product or replace the product. Only 17.3 percent mobilised other consumers. 96 percent did not lodge a complaint in the District Forum and only 4 percent made a complaint to the dealer/manufacturer.
9. The awareness level about CP Act is low. 67.2 percent of the respondents do not
know about the Consumer Protection Act. Only 10.2 percent know about it to a large extent and 22.6 percent to some extent.
10. 63.5 percent of the male and 71.0 percent of the female respondents are not aware
about the Consumer Protection Act.
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11. 70.2 percent of the respondents below 30 years of age are not aware about the Consumer Protection Act, while 61 percent above 50 years are not aware about the Act.
12. 74.9 percent of the rural consumers are not aware about the Consumer Protection
Act, while it is 56.3 percent in case of urban consumers.
13. Higher the education levels higher the awareness about the Act. 53.1 percent of the post graduate respondents are not aware about the Act while it is 95.3 percent in the case of respondents who have no schooling.
14. Higher the income levels higher the awareness about the Consumer Protection Act.
81.6 percent of the respondents below income level of ` 50,000 are not aware about the Consumer Protection Act while 58.2 percent of those having an income of ` 5-10
lacs are not aware about the Consumer Protection Act.
15. Out of the respondents who know about the CP Act, 28.9 percent came to know about it for the last three years, 26.7 percent for the last six years, 14.1 percent know about the Act for the last 9 years, 13.1 percent know about the Act for last 15 years and 4.1 percent of the respondents know about the CP Act for more than 15 years.
16. For 41.9 percent of the respondents the source of information about the CP Act has
been family and friends. Media as a source has been indicated by 71.5 percent, lawyers by 13.2 percent and for 29 percent respondents VCOs have been the source of information about the CP Act.
17. Out of the respondents who know about the Consumer Protection Act only 19.4
percent could correctly enumerate them which indicates the level of awareness about
the Act.
18. 59.5 percent could not say whether consumers are well protected under the laws in the country. Only 26.1 percent said they were well protected. 55.7 percent could not say whether the CP Act has been implemented well. Only 21.4 percent were of the view that the Act was implemented well.
19. 60.4 percent of the respondents could not say whether the CP Act favours only
consumers. Only 18.4 percent of the respondents said the Act favours only consumers.
20. 48.0 percent of the respondents are not aware about the District Forum. 18.9 percent
are aware about the DF to a large extent and 33.1 percent to some extent.
21. 84.9 percent of the respondents knew that only a consumer can file a complaint in the District Forum, 51.7 percent say only VCOs can file, 31.3 percent say Government can file, 30.8 percent are of the opinion that one or more consumers can file a complaint. Only 33.5 percent of the respondents know that all of the mentioned categories can file a complaint in the District Forum.
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22. Of all the respondents only 4 percent had filed a complaint in the District Forum. 26.6 percent of these had filed the complaint personally, 70.7 percent had engaged the services of a lawyer and 2.7 percent had filed a complaint through a VCO.
23. 32.4 percent of the respondents who did not file a complaint did so because they had
no knowledge about the law, 33.3 percent felt the procedure was lengthy and caused delay and 8.0 percent said the forum was located at a far of place from their residence.
24. Among those who had filed a complaint in the District Forums, 77.6 percent said that
the orders were implemented effectively, 65.9 percent said the District Forum are not consumer friendly and only 19.3 percent had taken the help of a VCO.
25. Given a choice 60 percent of the respondents said that they would prefer mediation
rather than filing a complaint. 26. Only 12.8 percent of the respondents know about the District Consumer Protection
Council.
27. 16.4 percent have used the threat of CP Act to restrain the marketers from exploitation. Out of those who had threatened the business to use the CP Act, 29.2 percent of them said that unfair trade practices had stopped, 41.7 percent said it had stopped but started after sometimes. 29.2 percent said that business did not bother about the threat.
28. 75.4 percent of the respondents identified lack of education about consumer rights as
the major reason for failure of consumer movement. 51.4 percent say that consumers attitude is casual, 68.1 percent blame the ineffective redressal mechanism. 62.3 percent blame the government for insufficient efforts, 62.0 percent feel the business is too powerful and 57.6 percent are of the opinion that nobody wants to take an initiative.
29. 88.0 percent of the respondents agree that there is a need for consumer awareness
programmes to educate the consumers.
30. As far as the agency to carry out the programmes to create awareness is concerned the respondents preferred that the Government should be involved in creating awareness, next preference was to Schools/Colleges, next to Gram Panchayats, then to Electronic and Print Media and NGOs/VCOs was last in order of preference.
31. The medium first preferred by the respondents was electronic and print media,
secondly they ranked that the important days relating to consumers should be celebrated, NGOs/VCOs were placed at third preference.
32. 80.2 percent of the respondents had heard/seen Jago Grahak Jago campaign. 90.3
percent said the TV was the major source of information, 67.2 percent said Radio, 65.3 percent came to know from newspapers/magazines, and 17.7 percent were informed by the VCOs.
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33. 86.62 percent of the respondents find ―Jago Grahak Jago‖ campaign very informative.
34. 87.2 percent and 87.5 percent of the respondents are not aware about the National
Consumer Day and World Consumer Rights Day respectively. Of those who knew about these days only 41.8 percent of them could mention the correct dates.
35. 92.3 percent of the respondents are not aware about NCH/CORE helplines and only 6.4 percent had approached them for help.
6.2.2 Working of the Redressal Mechanism
1. 60.6 percent of the Members of the District Forums are in the age group of 35-50 years while 88.3 percent of the Presidents of the District Forums are above 60 years.
2. 38.0 percent of the Members of the District Forums are graduates with law degree
while 14.1 percent of them are post graduates with law degree which constitutes more than half the Members (52.1 percent) with a law degree.
3. 44.3 percent of the members were lawyers before being selected to the District
Forums and 11.5 percent of them were government employees. 14.2 percent of the lady members were housewives with no experience.
4. 69 percent of the members without a law degree did not experience any kind of
problem while handling complaints, while 97.4 percent agreed that a thorough knowledge of the Consumer Protection Act and the procedures to be followed should be known by all.
5. The infrastructure requirement seems to be the major problem being faced by the
District Forums in their functioning. 59.7 percent are of the view that the infrastructure is inadequate. 61.5 percent opined that there is shortage of supporting staff; funds are not available for day to day functioning and requirements (62.4 percent). Nearly 70 percent say that lab testing facilities are inadequate. 62 percent of the respondents blame the consumers for non -cooperation and nearly 80 percent say that there is shortage of stationary.
6. 72.3 percent of the respondents said the complaints are not disposed of within 3-5
months as stipulated under the Consumer Protection Act. Only 27.7 percent of the respondents said that complaints are disposed within the time limit.
7. Only 10.2 percent of the complaints are disposed within a period of three months,
17.8 percent within 5 months, 18.8 percent takes between 5-9 months, 22.8 percent of the complaints are disposed within 9-12 months while 19.5 percent of the complaints take between 1-2 years to be disposed and 10.9 percent of the complaints take more than 2 years to be disposed. Thus only 28.0 percent of the complaints are disposed within a period of 5 months, 41.6 percent take more than 5 months and 30.4 percent of the complaints take more than one year to be disposed.
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8. 64.0 percent blame the involvement of the lawyers in the District Forums for the delay. 63.4 percent say the lawyers do not cooperate in speedy disposal of complaints. 56.4 percent say undue adjournments are asked by them. 78.9 percent hold technical proceedings responsible for the delay. 79.2 percent feel the consumer is disinterested after filing the complaint and 79.5 percent say delay is also due to lack of product testing facilities.
9. 53.1 percent of the respondents say they face problems in the execution of the
orders of the District Forums. 62.0 percent say the District Administration does not cooperate with the District Forums.
10. In case of product testing, 85.6 percent of the respondents are of the view that there
is delay in sending the report and 97.1 percent of the respondents are of the view that it is difficult to interpret the report as it is too technical and scientific.
11. Delay in disposal of complaints is cited as a reason by 75.6 percent of the
respondents for consumers not coming forward to file complaints. 84.6 percent say the compensation amount is too less and 85.0 percent held lack of awareness about their rights as a reason for consumers not filing complaints.
12. 91.1 percent of the respondents agreed that due to low honorarium, qualified people
are not being attracted to the consumer forums. 95.6 say the honorarium should be increased. 52.1 percent of the Presidents agreed that it should be atleast ` 25000. 25.1 percent felt the honorarium should be between ` 25000-35000, 16.0 percent
feel that it should be above ` 35000 while 6.8 percent said that it should be equal to
the Presidents as they perform the same work.
13. Indiscipline is not a problem in the working of District Forums say 93.1 percent of the respondents. 98.3 percent said punctuality is adhered to. 76.9 percent opined that the functioning of the forums is good. There is a cordial relationship among the members said 71.3 percent of the respondents. 76.2 percent said members are involved in judgment writing and 69.3 percent agreed that forums try to mediate between the parties to solve the complaint.
14. 36.3 Percent of the respondents agreed that they apply CPC, CrPC and Evidence Act in the proceedings of the forums, 17.5 do so to some extent and 46.2 percent follow only simple procedures and refrain from using these provisions.
15. 63.7 percent of the respondents feel that the NGOs/VCOs should play an active role
in filing complaints. 80.9 percent of them said the consumers are not aware about their rights.
16. 51.8 percent feel the involvement of the lawyers helps the consumers to a large extent, while 48.2 percent feel it does to some extent. 60.2 percent agreed that lawyers prolong the cases and 64.0 percent opined that they also make the proceedings technical and difficult for consumers to understand.
17. 74.8 percent of the members are not aware about the District Consumer Protection
Council. 64.3 percent are unaware of DCPC being constituted in their District.
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18. 90.2 percent opined that they do not have funds at their disposal to promote consumer education.
19. Only 26.7 percent of the respondents are aware about the CONFONET Project but
80.5 percent agreed that computerisation has helped in data management. Only 49.2 percent said that the data is uploaded on daily bases as there are no full time staff to upload the data, 77.2 percent identified it as the main problem.
20. 72.8 percent say there is no data entry operator, 53.9 percent held poor internet
connectivity as the problem and 58.5 percent blame it on lack of proper infrastructure. 53.7 feel problems are due to lack of computer education among the members and the staff. 72.2 percent say that the computers are poorly maintained while lack of proper hardware and software has been cited as a problem in computerisation by 82.1 percent of the respondents.
21. 60.2 percent of the respondents have attended a training programmes and 63.2
percent found it to be very helpful in up-gradation of their knowledge and skill. Among all those who have attended a training programme, 73.5 percent attended at IIPA.
22. As far as infrastructure is concerned 63.6 percent of the forums are situated in their
own buildings and 22.7 percent in government building. Library facilities exist only in 64.5 percent of the forums.
23. 86.4 percent of the forums have computer hardware. 77.3 percent have internet
connectivity of their own. 81.8 percent have fax machines and 83.6 percent have also acquired photocopiers. But internet connectivity is poor.
24. 64 percent cases filed in the District Forums are related to service sector. 55.1
percent of all the complaints filed in the District Forums related to electricity, insurance, banking and telecommunications.
25. In 40 percent of the District Forums less than 15 complaints are being filed every
month. In 37.3 percent, between 15-30, and in 11.8 percent of the forums between 30-40 complaints and in 10.9 percent of the District Forums more than 45 complaints are being filed every month.
26. Less than 15 cases are disposed every month by 31.8 percent of the District Forums,
between 15-30 complaints by 30 percent of the forums, 30-45 complaints by 20.9 percent of the forums while 17.3 percent of the forums dispose more than 45 complaints per month.
27. In the ten District Forums selected for study by the research team in 5 states, the
disposal rate is 90.1 percent, 51.5 percent of the complainants belong to the urban areas while 48.5 are from the rural areas.
28. 46.2 percent of the pending complaints in the District Forums of Uttar Pradesh were
filed before 2001. 18.2 percent of the complaints in the district forums in the five
states were filed in 2010 and 20.0 percent of the pending cases were filed in 2011.
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60.0 percent of the pending of the complaints were filed before 2010 and majority of
them are in Uttar Pradesh.
29. 21.6 percent of the complaints are disposed within a period of 3-5 months, 20.8 percent between 5 months to 1 year, 29.1 percent between 1-2 years, 10.5 percent take more than three years to dispose the complaint in the ten select District Forums of five States.
30. 85.2 percent of the District Forums have awarded compensation to the consumers,
6.1 percent have directed to discontinue UTP/RTP. In 5.6 percent of the complaints, orders have been issued to withdraw hazardous goods and in 3.0 percent of the complaints orders have been passed to issue corrective advertisements.
31. 11.8 percent of the District Forums have less than 3 staff members to support their
functioning, 74.5 of them have 4-5 supporting staff and 13.7 have supporting staff between 6-7.
32. 92.1 percent of the supporting staff consists of permanent employees mainly drawn
from other departments on deputation, 5.4 percent of them are on contract and 2.5 percent of the supporting staffs are daily wage earners.
33. 80.66 percent of the respondents said that the staff strength is inadequate and
affects the functioning of the District Forums.
34. 30.2 percent of the respondents were of the view that each District Forum should have minimum staff strength of 6. 47.9 percent said it should be between 6-9, and 21.9 percent felt the ideal staff strength size would be between 9-12 employees to carry out the activities of the forums.
6.2.3 Effectiveness of the Redressal Mechanism
1. 74.4 percent of the complainants are males and 25.6 percent are females, 75.2 are from urban areas and 24.8 percent from rural. 15.3 percent have studied up to intermediate class. 40.9 percent are graduates, 16.5 percent are post graduates.
2. 28.5 percent of the respondents are professionals, which include engineers, doctors,
architects, lawyers, etc. 16.9 percent are government servants while 14.5 percent are traders/ manufacturers/ shopkeepers.
3. As far as the annual income of the complainants/ appellants is concerned 26.4 percent have an income of less than ` 50,000-1 lakh, 25.6 percent are in the income slab of `1-2 lakh, 15.3 percent have an income between ` 2-5 lakh and 7.5 percent
have an annual income of more than ` 5 lakh.
4. 88.8 percent of the cases filed in the three tier redressal mechanism relate to service sector and only 11.2 percent relate to products. The same is true at all three levels.
5. Before filing a complaint in the District Forum 39.6 percent of the respondents had tried other methods to redress their problems.
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6. 29.6 percent of the complainants came to know about the District Forum from the
lawyers, in case of 27.3 percent the source of information was print and electronic media and in the case of 21.2 percent of the complainants the family members and friends were the source of information. 18.2 percent of the respondents acquired information from VCOs.
7. 77.7 percent of the respondents filed the complaints through the lawyers. It is 92.3
percent in NCDRC, 81.5 percent in SCDRCs and 75.0 percent in the District Forums. 14.9 percent filed personally and 4.1 percent did through the VCOs.
8. Of all the complaints/ appeals filed 47.7 percent are pending, 38.6 percent have been resolved, 12.0 percent have been admitted and 1.7 percent have been dismissed.
9. Only 28.1 percent of the complainants/ appellants are satisfied with the functioning of the three tier redressal mechanism. Highest level of satisfaction is with the NCDRC accounting to 38.1 percent of the respondents.
10. 44.1 percent of the respondents are dissatisfied with the redressal mechanism on
account of delay in disposal of the complaints. 18.6 percent were awarded less compensation, 16.9 percent said the complaint was not heard properly.
11. 30.8 percent of the respondents of the District Forums were dissatisfied due to delay, 18.6 percent due to award of less compensation. 20.5 percent of them felt the complaint was not heard properly, 10.3 percent said the order was not executed, 7.7 percent opined that the forum was biased in favour of the opponent and 12.8 percent were dissatisfied due to time and money involved in litigation.
12. Overall only 33.1 percent of the respondents are satisfied with the procedures adopted by the three tier redressal mechanism. 76.9 percent however, are satisfied with the procedure of the NCDRC.
13. Only 15.7 percent of the complainants of the District Forums say that time limit is
adhered to in the admission of complaints, 34.8 percent say in the issue of notice, 29.1 percent in the commencement of hearing. 34.1 percent of the respondents say that the time limit is adhered in disposal of complaint and 7.3 percent agree that it is done in case of compliance of orders.
14. Only 29.8 percent of the respondents are satisfied with the progress of the complaint.
Among those who are satisfied, 43.0 percent are fully satisfied and 57.0 percent are satisfied only to some extent.
15. Of all the complaints disposed by the District Forums only 9.8 percent filed an appeal against the order in the State Commission, while only 6.1 percent filed an appeal in the National Commission against the order of the State Commission.
16. Of all the orders of the District Forums only 6.71 percent of the respondents had filed an application under section 25 for execution of the orders or section 27 for non-compliance.
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17. 57.0 percent of the respondents say that the staff of the Forums/ Commissions is supportive and helpful. It‘s as high as 76.9 percent for the NCDRC. 74.3 percent said that no staff member suggested engaging a lawyer and 65.8 percent did not find any difficulty in filing the complaint. It is only 61.6 percent for the District Forums.
18. 77.7 percent of the complainants/appellants engaged a lawyer to contest the complaint. This was because 57.9 percent did not know about the law, 50.8 percent were not aware about the procedure to be followed. Nearly 40 percent had time constraint to attend the proceedings and 27.3 engaged lawyers because of distance from the residence.
19. 73.4 percent of the complainants/ appellants are satisfied with the services of the
lawyers, 61.1 percent are largely satisfied, only 24.4 percent held the lawyer responsible for the delay in disposal of the complaint.
20. 29.6 percent of the respondents visited the forums/commissions 1-4 times to pursue their complaint. 5-8 visits were made by 30.4 percent of them, 9-12 by 16.7 percent, and more than 12 visits were made by 13.3 percent of the complainants/ appellants to pursue their complaint. The visits are higher at the level of the District Forums. 60.4 percent of the respondents made more than 5 visits to the District Forums to pursue their complaints.
21. Only 50.8 percent of all the complainants /appellants said their complaint was heard
properly. It is 44.4 percent in the District Forums, 61.5 percent at the State Commissions and as high as 76.9 percent at the NCDRC.
22. 55.8 percent of the respondents say the President and Members of the redressal
mechanism are punctual in attending the work of the Forums/ Commissions. It is 84.6 percent in case of NCDRC. 63.1 percent for SCDRCs and only 50.6 percent of the complainants of the District Forums said that the President and Members are punctual in attending the Forums.
23. 79.8 percent of the respondents are not aware that the VCOs can file a complaint on
behalf of the consumers. Only 5.7 percent had taken the help of the VCOs in filing the complaint.
24. 60.7 percent of the respondents want free Consumer Guidance Cells to be set up at
all the three tiers of the redressal mechanism.
25. 71.3 percent of the respondents did not face any harassment in the District Forums, while 28.7 percent faced harassment in varying degree. Only 48.3 percent of them did not face any harassment in the District Forums of U.P. while 51.7 percent faced varying degree of harassment.
26. 61.4 percent of the respondents would again file a complaint if the need be.
27. 55.8 percent of the respondents believe that the Forums/ Commissions decide the
cases only on merit. Among those who said yes, 18.5 percent say largely and 57.9 percent to some extent it is based on merit.
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28. In the District Forums 28.7 percent of the respondents said that after filing the complaint the first hearing commenced after one month, 27.2 percent said after 2 months, 22.3 percent said after 3 months, 11.7 percent say after 4 months and 10.2 percent said the hearing commenced after 5 months or more after filing the complaints.
29. In the SCDRCs and the NCDRC 23.4 percent of the respondents who filed a complaint said that the first hearing started after one month, 28.2 percent said after 2 months. 20.2 percent said after 3 months, 9.7 percent said it commenced after 4 months and 18.5 percent said the first hearing commenced after more than 5 months.
30. 33.2 percent of the complainants of the District Forums said the complaint was disposed within 1-3 hearings, 27.4 percent opined that it took between 4-6 hearings, 21.2 percent said it was between 7-10 hearings; while 18.2 percent said more than 10 hearings were conducted to dispose of the complaint.
31. In the SCDRCs 14.3 percent of the complaints were disposed within 1-3 hearings, 24.7 percent of the complaint took 4-6 hearing, 41.2 percent took between 7-10 hearings and 19.8 percent of the complaints were disposed after conducting more than 10 hearings.
32. In the District Forums 21.5 percent of the complaints were disposed without any adjournment being granted. 30.8 percent of the complaints had 1-2 adjournments, 24 percent between 3-4 and 15.6 percent between 4-6 adjournments while in 8 percent of the complaints more than 6 adjournments were granted.
33. In the District Forums 24.6 percent of the complaints were disposed within 3 months, 26.8 percent within 4-6 months, 16.4 percent within a period of 7-9 months, 10.4 percent within a period of 10-12 months and 21.9 percent of the complaints took more than a year to be disposed.
34. More adjournments are granted in the SCDRCs. 18.3 percent of the complaints were
disposed without any adjournment, 15.4 percent with 1-2 adjournments, 27.8 percent with 3-4 adjournments, 28.8 percent of the complaints had 4-6 adjournments and 9.7 percent of the complaints were disposed with more than 6 adjournments.
35. In the SCDRCs 24.1 percent of the complaints are disposed within 3 months, 23.8 percent within 4-6 months, 15.9 percent within 7-9 months, 11.0 percent within a period of 10-12 months and 25.2 percent of the complaints take more than a year to be disposed.
6.3 Recommendations
1. To strengthen the consumer movement in the country the State Governments should set up a separate Department of Consumer Affairs or atleast a Directorate of Consumer Affairs with adequate budget and manpower to begin with. However, in the long term a full-fledged Department of Consumer Affairs needs to be set up. The
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West Bengal and Kerala model would give a boost to the consumer movement in the country. (Annexure II)
2. The Consumer Protection Councils envisaged under the Consumer Protection Act
can play a meaningful role in promoting consumer welfare. Particularly at the district level these bodies can also provide a forum for various stakeholders to meet and share their problems. Therefore, there is a need to strengthen these councils and ensure that they are constituted and meet regularly.
3. At the District level the President and the Lady Member may be nominated as
members of the Council. Similarly at the State level the President and the lady member of the State Commission must be nominated as the members of the State Council. At present in most of the states the members of the redressal agencies are not members of these bodies.
4. There is an urgent need to strengthen the CONFONET project. At present hardly 15-
20 percent of all the data of the redressal agencies is being uploaded. As a result there is no mechanism through which an all India data of the redressal agencies can be retrieved. Unless data and record management improves it would be very difficult to enhance the efficiency of the redressal agencies. TSP may be provided for another five years to support the redressal agencies.
5. A large number of service providing departments and organizations have consumer
interface but there is no mechanism to address consumer issues. It would be appropriate that a middle level officer in each department is designated as Consumer Welfare Officer both in the central and the state governments.
6. All Government Departments as well as Public and Private Sector Enterprises having
public interface must have a Consumers Complaint Redressal Cell and run it impartially.
7. The District Forums are the first point of contact for the aggrieved consumers. But
these bodies themselves are not consumer friendly as in none of these three tier redressal bodies there is a desk to help or guide the consumers. Therefore, a ―MAY I HELP YOU DESK‖ needs to be set up in each of these Forums/Commissions to help and guide the consumers.
8. The members being appointed to the District Forums by and large lack knowledge
and skill to function effectively. It is time to introduce an objective type written test (MCQ) for the aspirants of the District Forums to screen them. Only those who qualify the written test should be called for the interview. This will go a long way in bringing competent and qualified people as members of the District Forums. (It is already being done in Andhra Pradesh.)
9. Delay in filling up the vacancies is hampering the working of the three tier redressal
agencies leading to pendency of complaints. Moreover, the State government keeps the recommendations made by the selection committee for appointment of President and Members pending for a very long time leading to unnecessary delay and pendency of cases. The process of filling up of the vacancies of the members of the District Forums, State Commissions and National Commission must begin atleast 6-8
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months before the vacancy actually takes place and the selections finalized at the earliest.
10. To fill up the post of Presidents and Members in the District Forums and the State Commissions, the State Government may make a ‗Standing Panel‘. The Presidents and Members of the District Forums, who have very good record, should be considered for re-appointment. Further, if there is vacancy in a particular District Forum, that Forum should be temporarily clubbed with the neighbouring District Forum, so that consumer does not suffer for want of action on the part of the authority.
11. With a view to attract better talent, a reasonable uniform pay scale of all the members of the State Commissions and District Forums should be fixed. The recommendations of the Shenoy Committee (Annexure VI) can be taken into account.
12. With a view to empower the Presidents of the State Commissions and the District
Forums, to discharge their administrative duties in a proper manner and to exercise the financial powers and also to enhance their functionality there is a need to declare the President of State Commission as ―Head of Department‖ and President of the District Forum as ―Head of Office‖.
13. The pendency in the State Commissions is increasing, therefore, there is a need to
constitute adequate number of additional Benches considering that, on an average, a Bench of a State Commission consisting of two Members could not be expected to dispose of more than 1000 cases in a full year.
14. The State Commissions are not able to exercise effective supervisory control over
the District Forums. As a result they lack accountability and indiscipline is becoming a major problem. In many of the states even the working hours are not adhered to and absenteeism has become a major problem. The working of the District Forums needs to be properly monitored and accountability fixed. Mere disposal of a specified number of complaints in a month is not an effective measure of the performance of the District Forums. At present the State Commissions do not have any mechanism to monitor or supervise the working of the District Forums and the President of the Commission does not have adequate time to do this. Therefore, the State Commission may set up a separate Monitoring Cell under a Joint Registrar (Monitoring) to effectively supervise and monitor the activities of the District Forums and report to the President of the State Commission periodically.
15. With the increasing workload of the redressal agencies there is a need to have adequate manpower to man the work of the redressal agencies. At present there is no uniform staffing pattern. There is no doubt that the current staff strength is inadequate. The Bagla Committee recommendations on staffing pattern (Annexure V) may be implemented, with variations depending on the size of the district and the number of complaints being filed. Similar is in the case of NCDRC/SCDRC.
16. There is a need to have a separate cadre of staff for the redressal agencies as the
staff on deputation has not been able to function effectively due to lack of administrative control. Judicial work needs permanent trained staff to handle the task
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which the staff on deputation is not able to handle. Moreover, by the time they are acquainted with the work they are transferred.
17. Capacity building is a major exercise. The Presidents and Members of the District Forums may undergo 2-3 weeks induction training soon after being selected. The State ATIs (Administrative Training Institutes) can organize such programmes. If such programmes are organized by Judicial Academies the members will imbibe judicial work culture and inculcate judicial mind set, therefore, to avoid this, it is important to involve the ATIs.
18. The District Forums must be encouraged to organize Lok Adalats to dispose of pending cases. The help of the District / Taluka Legal Services Authority may be taken to organize such adalats. At present very few cases are disposed of through the lok adalats.
19. The three tier redressal mechanism has virtually been hijacked by the lawyers. As a
result undue adjournments are granted leading to delay in disposal of the complaints. Moreover, at the District Forum due to the involvement of lawyers the proceedings have become too technical and cumbersome. It may be a good idea to ban the appearance of advocates in small cases involving less than one lakh rupees. This will provide great relief to small consumers and also quicken the pace of justice delivery. It will also encourage more consumers to seek redressal of their complaints. It is to be noted that lawyers are barred from appearance under the Banking Ombudsman scheme and family courts.
20. In a recent judgment the Supreme Court has held that it is not necessary to engage a
lawyer but any one with basic knowledge can appear on behalf of a consumer. The National Commission has been asked to frame the regulations. Such people should be asked to take up such cases. As a result of this the consumers will benefit a lot both in terms of quick delivery of justice and it will also be inexpensive. For both the district forums and the consumers it will be a win-win situation.
21. Except for the National Commission, none of the State Commissions and the District
Forums have their websites with full and updated information for the consumers. Even the State Commissions which have a website of their own, the information is out-dated and no regular updating is taking place. Moreover, information from a consumer‘s perspective is not available. Therefore, efforts must be made to ensure that every redressal agency whether at the state level or the district level must have its own operational website with standards for its regular updating.
22. At present no power is vested in the State Commissions and the District Forums to
review or recall the order of dismissal in default of the cases, and the cases dismissed for want of prosecution. Similarly, no power of review/recall is vested in the State Commissions and District Forums, for setting aside the ex parte proceedings orders. So far the review/recall of such like orders, one has to go to the National Commission, which results into unnecessary litigation, leading to delay in disposal of cases. It is recommended that not only the power of restoration of matters dismissed in default needs to be vested in the State Commission, but also they need to be conferred the power of reviewing their orders atleast in cases, where there is apparent error on the face of record. At times lack of power of review results in
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miscarriage of justice. However, this power may not be vested in the District Forums as chances of misusing such powers are high due to local influence.
23. In cases where statutory bodies are complained against, protection is claimed by
such statutory bodies, under the provisions of the Statutes creating them. For example, Section 6 of the Indian Post Office Act, 1898, provides protection to the statutory bodies and their functionaries. The provision was made when the country was under colonial rule and the post office did not make profit, out of the services provided by them. Keeping in view the interest of the consumers such protection provided under various laws needs to be reviewed and such protection should not be available to any statutory body in respect of the activities, which are commercial in nature.
24. Although at present the provisions of this Act are in addition to and not in derogation
of the provisions of any other law for the time being in force, giving consumers an additional forum for redressal of their grievances in addition to existing avenues for the same; the Supreme Court judgement dated 1.9.2009 in C. A. No. 7687 of 2004 of G. M. Telecom Vs M. Krishnan and another, has completely changed the situation. The dispute in this case was regarding disconnection of telephone connection for non – payment of telephone bill. The Supreme Court in its judgement held that when there is a special remedy provided in Section 7-B of the Indian Telegraph Act regarding disputes in respect of telephone bills, then the remedy under the Consumer Protection Act is by implication barred. It also held that it is well settled that the special law overrides the general law. This needs to be reviewed.
25. On the lines of the Conference of the Presidents of the State Commission and the Secretaries in-charge of the Consumer Affairs in the States being organised by the NCDRC and DCA annually, the State Commissions and the State Department of Consumer Affairs may organise a conference of the Presidents of District Forums and District Collectors who head the District Consumer Councils on annual basis.
26. In order to strengthen the consumer movement in the country the major focus has be to on consumer education and awareness about consumer rights and responsibilities. An educated consumer is an empowered consumer. Therefore, vigorous awareness campaign has to be launched using both electronic and print media. The campaign must have visibility and should not be an occasional affair as it is at present.
27. The Consumer clubs in schools and colleges are very good institutional mechanism to involve the youth in the consumer movement. This is very important as children are the best messengers. The consumer clubs need to be strengthened and empowered with adequate funds to generate activities. The recommendations of the study on consumer Clubs conducted by IIPA may be considered to strengthen the Consumer Clubs. (Annexure VII)
28. There is a greater need to involve educational institutions in the consumer
movement. As a first step the State School Boards may be requested to incorporate consumer protection in the school curriculum. The UGC may also initiate similar steps to start courses on consumer protection in the institutions of higher learning.
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29. VCOs can play a major role in educating the consumers‘ at the local level. They have
the reach as many of them work in the rural areas. But the need is to build the capacity of the VCOs to work as an effective organization. There are thousands of VCOs but the need is to have some standards of performance for these VCOs to be recognized and funded. BIS could formulate some standards for the VCOs. Subsequently they could register themselves with the State Government Departments. Only such VCOs which have been accredited by BIS should be funded to organize awareness programmes.
30. Capacity building programmes must be organized by the ATIs to orient the officers/ officials of various service providing departments about consumer protection. The SIRD (State Institute of Rural Development) may also be involved in training the elected representatives of the panchayat and the cutting edge bureaucracy. A capsule on consumer protection can be introduced in all the programmes being organized by the SIRDs. DCA may think of funding such training programmes to the ATIs and the SIRDs.
31. To educate the consumers at the District and the Taluka level the help of the District Legal Services Authority and the Taluka Legal Services Committee constituted under the Legal Services Authorities Act, 1987 may be taken. The objective is to take the help of the existing legal and institutional mechanism to educate the consumers and create awareness at the local level rather than setting up new institutions.
32. The National Consumer Day needs to be celebrated in a befitting manner. This should be a day of celebration with various activities being planned down to the Panchayat level. The Consumer Clubs can be roped in to organize various activities like rallies, nukkad natak, painting competition, debates etc. to create awareness on consumer issues.
33. There is a need and demand for good quality publicity material relating to consumer issues. The Department of Consumer Affairs, GoI, may print suitable and innovative posters, pamphlets, booklets and publicity material on large scale and send it to various State Commissions, District Forums and other organisations for their use. It can be both in English and Hindi languages. The same may also be translated in regional languages by the State Governments for the benefit of general public.
34. Steps are required for Setting up Mediation Centers to try and resolve Consumer Grievances through Conciliation and Mediation prior to filing of complaints in Consumer Fora. These Centres should be part of the District Forums and be located in the Consumer Fora building itself and under the administrative control of the President of the concerned forum for better monitoring and to reduce overhead expenditure. Such Mediation Centers for dealing with consumer complaints will help in reducing the burden on the Consumer Foras.
35. Apart from the Mediation Centres, the Consumer Helplines and CAC scheme needs
to be strengthened. The state governments may be requested to set up the helplines at the earliest.
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ANNEXURE I
DATA ON FUNCTIONING OF THE CONSUMER FORAS
Table A.1.1
Information Regarding Functional/Non-Functional Fora (State Commissions/District Forums)
(Update on 18.09.2012)
Sl. No.
States Whether SC Functional
or Non-functional
No. of District
Fora
Functional Non-functional
As on
1 Andhra Pradesh Yes 29 29 0 30.06.2012
2 A & N Islands Yes 1 1 0 31.3.2006
3 Arunachal Pradesh Yes 16 13 3 30.06.2012
4 Assam Yes 27 27 0 31.12.2011
5 Bihar Yes 38 36 2 30.06.2012
6 Chandigarh Yes 2 2 0 30.06.2012
7 Chattisgarh Yes 18 18 0 30.06.2012
8 Daman & Diu Yes 2 2 0 31.03.2011
9 Dadra & Nagar Haveli Yes 1 1 0 31.03.2011
10 Delhi Yes 10 10 0 31.07.2012
11 Goa Yes 2 2 0 30.06.2012
12 Gujarat Yes 30 30 0 31.03.2012
13 Haryana Yes 21 19 2 30.06.2012
14 Himachal Pradesh Yes 12 12 0 30.06.2012
15 Jammu & Kashmir Yes 2 2 0 31.03.2009
16 Jharkhand Yes 22 16 6 30.09.2011
17 Karnataka Yes 30 30 0 30.06.2012
18 Kerala Yes 14 14 0 31.12.2010
19 Lakshadweep Yes 1 1 0 31.07.2012
20 Madhya Pradesh Yes 48 48 0 30.06.2012
21 Maharashtra Yes 40 40 0 30.06.2011
22 Manipur Yes 9 9 0 31.12.2008
23 Meghalaya Yes 7 7 0 30.11.2011
24 Mizoram Yes 8 8 0 31.12.2010
25 Nagaland Yes 8 8 0 31.12.2011
Continue….
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Information Regarding Functional/Non-Functional Fora (State Commissions/District Forums)
Sl. No.
States Whether SC Functional
or Non-functional
No. of District
Fora
Functional Non-functional
As on
26 Odisha Yes 31 31 0 30.06.2012
27 Pondicherry Yes 1 1 0 30.09.2011
28 Punjab Yes 20 20 0 30.06.2012
29 Rajasthan Yes 37 37 0 30.06.2012
30 Sikkim Yes 4 4 0 31.12.2011
31 Tamil Nadu Yes 30 11 19 30.06.2012
32 Tripura Yes 4 4 0 30.06.2012
33 Uttar Pradesh Yes 75 75 0 31.03.2012
34 Uttaranchal Yes 13 12 1 31.07.2012
35 West Bengal Yes 21 21 0 30.06.2012
TOTAL 634 601 33
Table A.1.2
Information Regarding Vacancy Positions in the State Commissions and District Forums
(Update on 18.09.2012)
Sl. No.
States State Commission District Forum
President Member President Member
National Commission 0 1
1 Andhra Pradesh 0 0 13 17
2 A & N Islands 0 0 0 0
3 Arunachal Pradesh 0 0 0 14
4 Assam 0 0 5 14
5 Bihar 0 1 6 16
6 Chandigarh 0 1 0 0
7 Chattisgarh 0 1 1 5
8 Daman & Diu and DNH 0 0 0 2
9 Delhi 0 1 0 1
10 Goa 0 0 0 0
11 Gujarat 0 0 3 6
12 Haryana 0 1 7 27
13 Himachal Pradesh 0 0 0 3
Continue…
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Information Regarding Vacancy Positions in the State Commissions and District Forums
Sl. No. States State Commission District Forum
President Member President Member
National Commission 0 1
14 Jammu & Kashmir 0 0 0 0
15 Jharkhand 0 1 5 14
16 Karnataka 0[1] 1 4 8
17 Kerala 1 1 0 1
18 Lakshadweep 1 1 0 1
19 Madhya Pradesh 0 1 0 19
20 Maharashtra 0 3 8 23
21 Manipur 0 0 0 1
22 Meghalaya 1 0 0 1
23 Mizoram 0 0 0 0
24 Nagaland 0 0 0 0
25 Odisha 0 0 3 9
26 Puducherry 0 0 0 0
27 Punjab 0 1 1 0
28 Rajasthan 0 0 3 22
29 Sikkim 0 0 0 1
30 Tamil Nadu 0 0 4 31
31 Tripura 0 0 0 0
32 Uttar Pradesh 1 2 6 6
33 Uttarakhand 0 0 0 8
34 West Bengal 0[2] 0 0 2
TOTAL 4 16 69 252
[1] President retired on 19.05.09
[2] President take charge on 07.05.08
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Table A.1.3
Statement of Cases Filed / Disposed of / Pending in the National Commission and State Commissions
(Update on 18.09.2012) Sl. No.
Name of State Cases filed since inception
Cases disposed of since
inception
Cases Pending
% of Disposal As On
National Commission 76909 66560 10349 86.54 31.08.2012
1 A.P 28146 26613 1533 94.55 31.07.2012
2 A & N Islands 42 38 4 90.48 31.01.2008
3 Arunachal Pradesh 62 58 4 93.55 31.07.2012
4 Assam 2474 1603 871 64.79 29.02.2012
5 Bihar 15163 10678 4485 70.42 30.06.2012
6 Chandigarh 11920 11725 195 98.36 30.06.2012
7 Chattisgarh 8120 7777 343 95.78 31.08.2012
8 Daman & Diu and DNH 25 20 5 80.00 31.03.2011
9 Delhi 33875 32328 1547 95.43 31.08.2012
10 Goa 2261 2193 68 96.99 31.07.2012
11 Gujarat 41760 34582 7178 82.81 30.06.2012
12 Haryana 42237 40440 1797 95.75 31.07.2012
13 Himachal Pradesh 7704 7249 455 94.09 31.07.2012
14 Jammu & Kashmir 6396 5755 641 89.98 31.03.2012
15 Jharkhand 4918 4155 763 84.49 31.12.2011
16 Karnataka 43514 39121 4393 89.90 31.07.2012
17 Kerala 25107 24016 1091 95.65 31.07.2012
18 Lakshadweep 17 16 1 94.12 31.08.2012
19 Madhya Pradesh 40619 35953 4666 88.51 31.07.2012
20 Maharashtra[1] 54170 36527 17643 67.43 30.06.2011
21 Manipur 139 96 43 69.06 30.09.2008
22 Meghalaya 253 175 78 69.17 31.03.2011
23 Mizoram 183 171 12 93.44 30.04.2011
24 Nagaland 25 6 19 24.00 31.12.2011
25 Odisha 21265 15338 5927 72.13 30.06.2012
26 Puducherry 950 889 61 93.58 31.03.2012
27 Punjab 28843 22458 6385 77.86 31.07.2012
28 Rajasthan[2] 49913 45936 3977 92.03 30.06.2012
29 Sikkim 40 40 0 100.00 31.12.2011
30 Tamil Nadu 23907 21891 2016 91.57 31.07.2012
31 Tripura 1398 1376 22 98.43 31.08.2012
32 Uttar Pradesh[3] 64884 37037 27847 57.08 31.05.2012
33 Uttarakhand 4551 3771 780 82.86 31.07.2012
34 West Bengal[4] 16221 15125 1096 93.24 30.06.2012
TOTAL 581102 485156 95946 83.49
[1] Maharashtra is having one additional Bench, [2] Rajasthan is having one additional Bench, [3] UP is having one additional Bench, [4] WB is having two additional bench
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Table A.1.4 Statement of Cases filed/disposed of/pending in District Fora (Update on 18.09.2012)
Sl. No. Name of State Cases filed since
inception
Cases disposed of
since inception
Cases Pending
% of Disposal
As On
1 A.P 190577 184985 5592 97.07 31.07.2012
2 A & N Islands 330 301 29 91.21 31.03.2006
3 Arunachal Pradesh 404 338 66 83.66 31.07.2012
4 Assam 13704 11976 1728 87.39 31.08.2010
5 Bihar 83595 73011 10584 87.34 30.06.2012
6 Chandigarh 45599 44469 1130 97.52 30.06.2012
7 Chattisgarh 36302 33075 3227 91.11 31.08.2012
8 Daman & Diu and DNH 162 144 18 88.89 31.03.2011
9 Delhi 239215 228875 10340 95.68 30.09.2011
10 Goa 6272 5670 602 90.40 31.07.2012
11 Gujarat 169338 157249 12089 92.86 31.07.2012
12 Haryana 216777 199155 17622 91.87 31.07.2012
13 Himachal Pradesh 56107 52615 3492 93.78 31.07.2012
14 Jammu & Kashmir 20792 18855 1937 90.68 31.12.2007
15 Jharkhand 32572 29835 2737 91.60 31.12.2011
16 Karnataka 151675 147464 4211 97.22 31.07.2012
17 Kerala 178055 170740 7315 95.89 31.07.2012
18 Lakshadweep 75 65 10 86.67 31.08.2012
19 Madhya Pradesh 179416 163534 15882 91.15 31.07.2012
20 Maharashtra 245230 226885 18345 92.52 30.06.2011
21 Manipur 1037 1012 25 97.59 30.09.2008
22 Meghalaya 768 661 107 86.07 31.03.2011
23 Mizoram 3466 2819 647 81.33 31.12.2010
24 Nagaland 290 266 24 91.72 31.12.2011
25 Odisha 90805 84613 6192 93.18 30.06.2012
26 Puducherry 2840 2684 156 94.51 31.03.2012
27 Punjab 151454 146209 5245 96.54 31.07.2012
28 Rajasthan 279912 254716 25196 91.00 30.06.2012
29 Sikkim 283 262 21 92.58 31.12.2011
30 Tamil Nadu 101389 95999 5390 94.68 31.07.2012
31 Tripura 2645 2451 194 92.67 29.02.2012
32 U.P 550039 473739 76300 86.13 31.05.2012
33 Uttarakhand 34265 32278 1987 94.20 31.07.2012
34 West Bengal 83807[1] 78832 4975 94.06 30.06.2012
TOTAL 3169197 2925782 243415 92.32
[1] Data of Bankura DF not included.
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ANNEXURE II
STRUCTURE FOR DEPARTMENT OF CONSUMER AFFAIRS IN THE STATES
A2.1 Structure of Department of Consumer Affairs, Government of West
Bengal
The Consumer Affairs Department was set up in September 1999 for protecting the interest of consumers as envisaged by the Consumer Protection Act. 1986. State Consumer Disputes Redressal Commission, 21 Consumer Disputes Redressal Forums, the Directorate of Legal Metrology and Directorate of Consumer Affairs & Fair Business Practices are functioning under this Department.
Available Infrastructure
A. Redressal Forum
1. The State Consumer Dispute Redressal Commission sits at Bhavani Bhavan, Alipore, Kolkata- 700 027.
2. Consumer Disputes Redressal Forum is situated at District Head Quarter. There is additional Forum in Kolkata and Darjeeling District. A Circuit Bench has been opened at Alipurduar under District Forum Cooch Behar.
State Consumer Disputes Redressal Commission (with an Additional Bench) consists of President. Besides there are four members (including 2 of Additional Bench) and other officials.
Each Consumer Disputes Redressal Forum consists President and two non-judicial members and other officials.
3. In addition, to promote and protect the right of the Consumer there are Consumer protection council at State and District level headed by M.I.C. and District Magistrate respectively.
B. Directorate of Consumer Affairs & Fair Business Practices
The Directorate of Consumer Affairs & Fair Business Practices having its Head Quarter at Kolkata has 27 Regional Offices of the Assistant Directors for Consumer Affairs & Fair Business Practices situated in the Districts and important sub-divisions. This Directorate is headed by Director. Besides there are 1 Joint Director, 3 Deputy Directors, 36 Assistant Directors, 67 Deputy Assistant Directors, 508 Consumer Welfare Officers besides other staff.
C. Directorate of Legal Metrology
The Directorate of LM is headed by one Controller. Besides, 1 Joint Controller, 4 Deputy Controllers, 25 Assistant Controllers, 145 Inspectors and other staff. The Directorate
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has a Central Laboratory at Kankurgachi, Kolkata and one R.S.S.L at Siliguri.
D. The Administrative Set up of the Department :-
A2.2 STRUCTURE OF DEPARTMENT OF CONSUMER AFFAIRS, GOVT. OF KERALA
The Government of Kerala has formed a separate Department of Consumer Affairs as per the GO(MS)No.352/07/GAD dated 17-07-2007 by incorporating the Section of Consumer Affairs under the Food & Civil Supplies Department and the Legal Metrology Department under the Revenue Department for strengthening and coordinating the consumer protection measures and activities in the state. The Consumer Protection Act, 1986, one of the benevolent social legislations in the country, intends to protect the consumers from exploitations. The provisions of the Act cover Products as well as Services. To provide cheap, speedy and simple redressal to each District Forums and the State Consumer Disputes Redressal Commission at the State Level have been created, in Kerala. The Consumer Affairs Department, Government of Kerala, Thiruvananthapuram is responsible for the formulation and monitoring of schemes on Consumer Protection in the State, and strengthening of the consumer movement, apart from implementing the policy and programmes of the Central Government.
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Organisation Structure of the Department of Consumer Affairs
The following Departments/Organisations function under the Consumer Affairs Department:
1. Consumer Affairs Department in Government
2. Consumer Affairs Cell in the Commissionarate of Civil Supplies
3. Consumer Disputes Redressal fora in the state
4. Consumer Disputes Redressal Commission
5. Department of Legal Metrology in the State
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ANNEXURE III
SCRUTINY SHEET FOR A CONSUMER COMPLAINT FILED BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM IN
THE STATE MAHARASHTRA
Sl.No. Particulars Remarks 1. Whether a complaint is presented by
(i) The Complainant in person (ii) Through an advocate (iii) Through an authorized representative or power-or-
attorney holder (iv) (a) received through post by RPAD (b) if ‗Yes‘ Date
2. Whether the complaint is typed on a Ledger paper?
3. Whether the Complainant has left 1/4th Margin on left hand side?
4. Whether the Complainant has left 1/8th Margin on right hand side?
5. Whether the complaint is typed in double-space?
6. Whether the first half top page of the complaint is left blank for official endorsement?
7. Whether the Complainant has left space for Stamp Number and Complaint Number?
8. Whether the Complainant has stated Category & Sub-Category of consumer dispute?
9. Whether the complaint is addressed – Before the District Consumer Disputes Redressal Forum ?
10. Whether the full name of the Complainant with father‘s and/or husband‘s name is given?
11. Whether the Complainant has mentioned his (i) Age (ii) Occupation (iii) Detailed postal address for Correspondence with Tel. No.
Mobile No. & Email ID
12. In case of a complaint presented or filed by a power-of-attorney holder and/or Authorized representative, whether the full name of the power-of attorney holder and / or authorized representative is given in the cause-tittle along with the Complainant?
13. Whether the documents relating to Power-of attorney and/or authorized representation are annexed with the complaint?
14. Whether the name of the Opponent in full with fathers and /or husband‘s name and surname is given?
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15. Whether the Complainant has furnished the Opponent‘s (i) Age (ii) Occupation (iii) Detailed postal address for Correspondence with Tel. No &
Email ID
16. In case of a juristic person or legal person whether proper description of the said juristic person or legal body along with name of the person in management is shown in the cause-title?
17. Whether a resolution of the Managing Body of the juristic person authorizing him to sign the complaint and other documents if filed?
18. In case of juristic person being an Opponent whether the person responsible in the past-management for deficiency along with present persons in the management are shown in the cause-title?
19. Whether pecuniary value is shown below ` 20, 000/-?
20. Whether all Opponents are residing within territorial jurisdiction of District Forum?
21. In case of juristic person, whether Opponent is carrying on business within territorial jurisdiction of District Forum?
22. In case, Opponent being branch office, whether it is located in territorial area of District Forum?
23. If Opponents are more than one, and one of the Opponents is not residing and/or carrying on business in territorial area of District Forum, then whether Complainant has filed application seeking permission of the District Forum to file such complaint?
24. Whether the cause of action, in whole or partly arisen within territorial jurisdiction of District Forum?
25. Whether details of fees/deposits proportionate to the claim are given in the complaint along with Demand Draft and /or postal orders?
26. Whether every paragraph of the complaint is consecutively numbered?
27. Whether concise statement of cause of action is stated?
28. Whether a paragraph showing as to how the complaint is within limitation is incorporated?
29. Whether the Complainant has made a statement that except for this complaint no other legal proceeding is pending before Civil Court and/or any other quasi-judicial authority and/or High Court and / or Supreme Court (a) If the proceedings are pending whether the particulars of
the proceeding have been disclosed?
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30. Whether specific and distinct prayers as per Section -14 of the Consumer Protection Act, 1986 have been made? `
31. Whether the complaint is signed by the Complainant?
32. Whether the complaint is signed by the Complainant and his advocate if the complaint is presented through advocate?
33. Whether the complaint is verified by the Complainant duly attested by the Registrar of the District Forum or notary public or authorized officer vested by law to administer oath?
34. In case of representative complaint whether an application for seeking permission of the Consumer Forum under Section -12(1) (c) of the Consumer Protection Act, 1986 is annexed?
35. In case of a representative complaint whether an application under Section -12(1)(c) of the Act seeking permission a further application under Order-I, Rule-10 of Code of Civil Procedure is submitted along with the complaint or not?
36. In case of delayed complaint whether a separate delay condonation application is filed supported by an affidavit of the Complainant?
37. In case the complaint is filed through an advocate – (a) Whether there is Vakalatnama in prescribed form? (b) Whether the Advocate has fixed ` 10/- Court Fee Stamp on
the Vakalatnama? (c) Whether the Advocate is a member of Welfare Fund? If – ‗Yes‘, whether he has affixed Welfare Stamp? (d) Whether the advocate has furnished his detailed postal
address for correspondence with telephone number, mobile number and e-mail I.D.?
(e) In case of more than one advocate whether all other advocates have signed the Vakalatnama incorporating their names in the Vakalatnama?
(f) In case of Vakalatnama containing more than one name of the advocates and only one advocate appears whether other names are scored out or not?
38. In case of an authorized representative and Power-or-attorney holder whether detailed address, telephone number, mobile number, email I.D. is given or not for communication?
39. Whether the complaint is annexed with gist of the complaint?
40. Whether every document which is not in original is attested by the Complainant and/or by an advocate and/or by an authorized representative and/or power-or-attorney holder as ‗true copy‘?
41. Whether the documents and copies are legible and readable?
42. Whether the complaint is annexed with index as shown below:-
Sr.No. Description of documents
No. of documents
Remark Original/copy
Page
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43. Is there any interim application in the complaint? If –‗Yes‘, whether the said interim application is properly verified and supported by an affidavit?
44. Whether the Complainant has given each document in quadruple as required under Rule -6(2) of the Maharashtra Consumer Protection Rules, 2000?
45. Whether the 03 sets and sets to be provided to the Opponents are having same continuous pagination?
Scrutinized there are no objections consumer complaint be numbered and registered
OR
There are following objections and the Complainant is directed to comply with those
objections within a period of 15 days
____________________________________________ ____________________________________________
Seen, I undertake to comply Sd/-xxx Signature of the Complainant Advocate and/or authorized } Representative or power of } Attorney holder } All the objections raised are complied with on ______ REGISTRAR Signature of the Complainant } Advocate and/or authorized } Representative or power of Attorney holder} Signature of person before whom complied In view of compliance of objection complaint be numbered and registered.
REGISTRAR OR
Objections raised are not complied within a period of 15 days and, therefore, place the
matter before the District Forum.
REGISTRAR
Objections stands complied with in view of order of District Forum. Office is directed to Register and Number the complaint.
REGISTRAR
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ANNEXURE IV
LIST OF PERSONS CONTACTED BY THE RESEARCH TEAM
Members and Officials of National Commission, State Commissions and District Forums
S.No. Name Designation
NCDRC
1 Mr. H.D. Nautiyal
Registrar, NCDRC, New Delhi
2 Mr. Anil Srivastava Joint Registrar, NCDRC, New Delhi
3 Mr. Iqbal Ahmed Assistant Registrar, NCDRC, New Delhi
Uttar Pradesh
4 Sh. Sayed Ali Ajhar Rizvi Member, Uttar Pradesh, SCDRC C – 1, Vikrant Block – 1, Near Shaheed Path, Gomati Nagar,, LUCKNOW – 226 010
5 Sh. Rampal Singh Member, Uttar Pradesh, SCDRC, Lucknow, UP
6 Sh. Chandrabhan Srivastava Member, Uttar Pradesh, SCDRC, Lucknow, UP
7 Sh Jugal Kishore Member, Uttar Pradesh, SCDRC, Lucknow, UP
8 Shri Devendra Kumar Mishra Registrar, Uttar Pradesh, SCDRC, Lucknow, UP
9 Sh. Justice Hari Singh President, DCDRF, Meerut, UP
10 Mr. Pramod K. Aggrawal Member, DCDRF, Meerut, UP
11 Mrs. Abha Saxena Member, DCDRF, Meerut, UP
12 Ms. Snehlata Agrawal Member of DCDRF, Azamgarh, UP
13 Shri. Pappu Singh PA of President of DCDRF, Meerut, UP
Tripura
14 Hon‘ble Mr. Justice A.B. Pal President SCDRC, Tripura 'Khadya Upbhokta Bhawan', Ground Floor, Eastern Side, P.O. Kunjaban, West Tripura - 799 006
15 Mr.B.K. Sharma Member, SCDRC, Tripura
16 Mrs. D. Baidya Khasanabish Member, SCDRC, Tripura
17 Mr. Justice Bamdeb Mazumdar District Judge & President, DCDRF West Tripura, Agartala, Tripura
18 Mrs. Bharati Bhattacharya Member, DCDRF West Tripura, Agartala Tripura
19 Mr. B. Bhattacharya Member, DCDRF West Tripura,Agartala,
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Tripura
20 Mr. Justice Gautam Debnath District Judge & President, DCDRF South Tripura Udaypur Tripura
21 Mr. Sachindra Chandra Das Member DCDRF South Tripura, Udaypur, Tripura
22 Mrs. Rita Deb Barman Member, DCDRF South Tripura, Udaypur, Tripura
Odisha
23 Hon‘ble Mr. Justice A. K. Samantaray
President, SCDRC, Odisha Sector – 1, Near Sati Choura Chowk, C.D.A. Bidanasi, Cuttack – 14
24 Smt. Smarita Mohanty
Member, SCDRC, Odisha
25 Mr. S. C. Mahtab Member, SCDRC, Odisha
26 Mr. Ajay Kumal Samal President, DCDRF Balasore, Odisha
27 Ms. Sachin Akhtar Female Member, DCDRF Balasore, Odisha
28 Mr. Sukumar Rana Member, DCDRF Balasore, Odisha
29 Naba Kishore Pattanaik President, DCDRF, Puri, Odisha
30 Mr. Rajeswar Rao Naidu Member , DCDRF, Puri, Odisha
31 Ms. Rajshree Panda Member , DCDRF, Puri, Odisha
Gujarat
32 Hon‘ble Mr. Justice R. P. Dholakia
President, SCDRC, Gujarat 'Grahak Bhavan', Near Gota Cross Road, Towards Gandhinagar, S. G. Highway, Gota,, Ahmedabad
33 Shri Balvant Singh Chanda Registrar of SCDRC, Gujarat [email protected]
34 Shri M.K. Johny Assistant to Registrar, State Commission, Gujarat
35 Mr. Justice Patel Chamanlal Hirji Bhai
President , DCDRF, Junagadh, Gujarat
36 Mr. Justice A.R. Patel President, DCDRF – Surat (Main), Gujarat
37 Mr. Justice D.C. Shah President, DCDRF, Surat (Addl), Gujarat
38 Ms. Geeta D. Shroff Member, DCDRF (Addl), Grahak Bhavan Umra Gaum, Surat, Gujarat
Karnataka
39 Hon'ble Mr. Justice K. Ramanna
President SCDRC, Karnataka State Consumer Disputes Redressal Commission, Basava Bhavan, High Grounds ,Basaveswara Circle, Bangalore
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40 Mr. M. Devaraja Bhat Registrar –Cum – Admn. Officer SCDRC, Bangalore, Karnataka [email protected]
41 Justice Sh. H. V. Ramachandran
President , DCDRF, Bangalore-Rural, Karnataka
42 Mr. Justice Mahipal Desai President, DCDRF , Shimoga, Karnataka
43 Mr. S. Ashoka Member, District Forum, Shimoga, Karnataka
44 Mr. E. Prema Member, DCDRF, Shivamoga, Karnataka [email protected]
Government Officers consulted for Research Study
Uttar Pradesh
1 Mr. S.C.Trivedi Special Secretary Food & Civil Supplies , Lucknow, Uttar Pradesh
2 Mr. Amresh Chandra Deputy Secretary Food & Civil Supplies &Consumer Protection Act & Measurement, Lucknow, Uttar Pradesh
3 Mr. O.P Singh Deputy Controller Legal Metrology, Lucknow, Uttar Pradesh
4 Sh. Vimal Kumar Shukla DSO (District supply officer) District- Azamgrah, Uttar Pradesh
5 Mr. Abhinav Chaurasia R.O. ( Consumer Protection) Lucknow, Uttar Pradesh
6 PA of DM & Collector District - Meerut, UP
Tripura
7 Mr. Rajendra Kumar Noatia Joint Director Directorate of Food and Civil Supply Agartala, Tripura
8 Sh. M.L. Dey DM & collector Gomathi District. , Udaypur , Tripura
9 Sh. Sabyasachi Singh SDM, Udaypur Subdivision, Udaypur, Tripura
10 Sh. Bhavesh Chandra Bhadra DCM, Killa Revenue Circle , Tripura
11 Mr. Ashish Kumar Dutta Food Inspector ,Directorate of Food & Civil Supply, Tripura Govt. Agartala, Tripura
12
Mr. Tapi Jamatia UDC South Tripura DCDRF Udaypur, Tripura
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Odisha
13 Shri. Madhusudan Padhi IAS Commissioner- cum-Secretary & Chairman cum- CEO, OCAC, Puri, Odisha [email protected] [email protected]
14 Dr. Akhila Bihari Ota, IAS , District Magistrate Balasore, Odisha
15 Shri. Goutam Chandra Nayak DCA-cum-Joint Secretary Bhuvaneshwar, Odisha
16 Shri Narayan Chandra Pati C.S.O, Balasore, Odisha
17
Shri. Jyoti Ranjan Baral C.S.O, Puri, Odisha
Gujarat
18 Shri. Yogesh. B. Patel Secretary of Food Civil Supplier & Consumer Affair Dept., Ahmedabad Gujarat
19 Shri. R.G. Khamar Deputy Director Consumer Affair, Gandhi Nagar, Gujarat
20 Shri. C.S Solanki District Supply Officer Junagadh, Gujarat
21 Shri. B.R.Vishana Asst. Controller, Legal Metrology & Consumer Affair, Jilla Sewa Sadan-2 Surat, Gujrat
22 Shri. P.M. Makavana Chief Supply Inspector Junagadh, Gujarat
23 Shri. Ramesh A. Chavda Section Officer Food Civil Supplier & Consumer Affair Dept., Gujarat
24 Shri. N.H Thuhhar Jr. Section Officer, Food & Civil Supplier Dept. Gujarat
24 Shri. N.P. Shah Sr. Legal Metrology & Consumer‘s Affair Officer , District Surat/ Tapi Gujrat
25 Shri. Padamanabh. H. Shah C.D.R.F (Addl), Grahak Bhavan Umra Gaum, Surat, Gujrat
Karnataka
26 Shri. B.A. Harish Gowda Secretary, Food, Civil Supplier, Consumer Affair Bangalore, Karnataka
27 Shri. M.C. Gangadhara Deputy Director Food Civil Supplier, Consumer Affair, Bangalore, Karnataka [email protected], [email protected]
28 Sh. K.B Jayadevappa Deputy Director , Bangalore- Rural Karnataka, [email protected]
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29 Dr. Uswarath Deputy Director, Food Civil Supplier, Shimoga, Karnataka
30 Ms. Venkateshami Head Master, Govt. High School Channahalli, Bangalore ( R ), Karnataka
Members and Staff of NGOs/VCOs who are consulted for Research Study
Tripura
1 Shri. Amrit Lal Saha President & Director, Consumers‘ Protection Association & CCC-Chairman, Dhaleshwar, Road No. 15 Agartala – 799 007 (Tripura) Tel 0381-2324336, 2300050 (M) 09862216817, Fax: 0381-2380023 Email : [email protected]
Gujarat
2 Shri. Ramjibhai Mavani
Ex-M.P. Lok Sabha, Rajkot Saher Jilla Grahak Suraksha Mandal, 329, Popatbhai Sorathia Bhavan, Sadar Bazar, Rajkot – 360001, Gujarat, India. M :09428201611, 09374208474 Telefax: 0281-2471122 Email: [email protected]
3 Mr. Pratap Chapia President, Consumer Advisory Centre Surat, Gujarat, Email- [email protected]
4 Mr. Viraj Chapia Programme Officer, Sankalan Agency Consumer Club, Surat, Gujarat
5 Shri. Satish M. Udani
Executive Member Sheri Jagurti Grahak Suraksha Mahila Mandal, 319 and 329, PS Bhavan Sadar Bazar, Rajkot – 360001, Gujarat, (M)- 9824200406 Email- [email protected]
Karnataka
6 Shri. Ravindra Nath Guru Secretary, Consumer Care Society, 593,24th Cross, Banashankari II Stage, Bangaluru-560070, O: 080-26713616 R: 080-65734444 M: 9845683220 Email: rnguru@gmail.
7 Sh. B.V. Gopala Krishna President, ‖Consumer Forum‘ CH 52, I Cross, Jaya Nagar, Shivamoga, Karnataka
8. Sh. M.M. Jayaswamy President, ‗Consumer Forum‘ (R) Kelanginakeri, P- Shiralakoppa, District, Shivamoga, Karnataka
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ANNEXURE V
BAGLA COMMITTEE REPORT
BAGLA COMMITTEE REPORT ON NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
The National Commission was set up in the year 1988. Initially, 37 posts of various categories were sanctioned by the Central Government for the Commission. Subsequently, six more posts were created in terms of an order of the Supreme Court. Thus the total number of posts on the establishment of the Commission at present is 43 and shown in the statement at Annexure ‗A‘.
There is a manifold increase in the filing of consumer cases in the Commission because of the steady growth of the consumer movement in the country. 17.805 cases have been filed in the Commission since its inception and presently 8,016 cases are pending for disposal. A statement showing the number of cases filed, disposed of and pending as on 1.11.1999 is annexed as Annexure ‗B‘. In order to cope up with the increase in work and for its smooth functioning, the National Commission had taken up the matter with the Ministry of Food & Consumer Affairs for the creation of 35 additional posts in June, 1996. The Ministry of Finance, Department of Expenditure has however, sanctioned five temporary posts, viz. one post of Assistant Registrar, one post of Assistant, two posts of LDCs and one post of Stenographer Gr. ‗D‘.
Section 20 of the Consumer Protection Act, 1986 deals with the National Commission. It consists of the President and four Members. The President of the Commission has to be a person. who is or has been a Judge of the Supreme Court and is entitled to salary and perquisites as available to him in the Supreme Court.
A Judge of the Supreme Court is entitled to the following staff:-
Category of Staff Scale of Pay
AR-cum-PPS Rs.11360-16040 1 Sr. P.A. Rs.6500–10500 1 Staff Car Driver Rs.3050 - 4590 1 Jamadar Rs.2610 - 3540 1 Peons Rs.2550 - 3200 6
Similarly, the four Members of the National Commission are either former High Court Judges or Secretaries to the Government of India. A Judge of the High Court is entitled to the following staff:-
Category of Staff Scale of Pay
PPS ` 10000-15200 1 PA ` 5500 – 9000 1
Staff Car Driver ` 3050 – 4590 1
Peon ` 2550 – 3200 3
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In view of the above, the President of the National Commission should be provided the same number of staff as is made available to a sitting Judge of the Supreme Court because he enjoys the same salary and perquisites as are available to a sitting Judge of the Supreme Court. The Members of the National Commission should, likewise, be provided the same staff as is given to a sitting High Court Judge except that only one peon each be posted with the Members. Further a staff car driver may be provided to them after decision on the availability of independent staff car for each Member is taken. In other words, a Principal Private Secretary, one Personal Assistant and one peon should be posted with the Member.
Two Court Masters/Readers, preferably shorthand knowing, should assist the Commission in the hearing of matters. They should be Officers in the pay scale of Rs. 6500-10500.
The Office of the Commission is headed by the Registrar who is assisting the Commission in all administrative and judicial matters. He also functions as Head of Office and exercise financial powers delegated to him by the Head of Department. One Grade ‗B‘ Stenographer has been provided to the Registrar. However, only one peon attends to the Registrar and the Deputy Registrar. It is essential that a peon is provided exclusively to the Registrar as per his entitlement.
The Commission has presently no post of Joint Registrar. Section 24B of the Act lay downs that the National Commission shall exercise administrative control over all the state Commissions and through the State Commission over the District Forums. As such, the services of an officer of the level of Joint Registrar are essential for assisting the National Commission in performing its function of administrative control.
There is only one post of Deputy Registrar in the Commission who looks after the Judicial, Administrative and Accounts Sections. Keeping in view the volume of work involved, it is essential that there should be at least two posts of Deputy Registrars; One Deputy Registrar may look after the work on the judicial side and the other for the administrative side.
Originally, only one post of Assistant Registrar was sanctioned. One more post of Assistant Registrar has now been created by the Ministry of Finance. Assistant Registrars supervise the work of Judicial and Administration branches as well as preparation of daily cause list.
The post of Joint Registrar may be created in the pay scale of ` 14,300-18,300. The post of Deputy Registrar in this Commission is in the scale of ` 12,000-16,500, and are
equivalent to Director and Deputy Secretary in the Govt, of India who are entitled to a Personal Assistant/Grade ‗C‘, stenographer in the scale of ` 5500-9000. Therefore, one
Stenographer may be provided to the Joint Registrar and one each to the Deputy Registrars.
The posts of Assistant Registrar in this Commission are in the pay scale of ` 10,1000
-15,200 which is equivalent to the pay scale of an Under Secretary to the Govt. of India. A Stenographer Grade ‗D‘ in the pay scale of ` 4000-6000 is attached with an Under
Secretary. Two posts of Grade ‗D‘ Stenographers in the scale of ` 4000-6000 may, therefore, be created for the Assistant Registrars.
One peon each with the Joint Registrar and Deputy Registrars and one peon for two Assistant Registrars may be provided in terms of Govt. of India‘s instructions.
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As the National Commission exercise three types of jurisdictions viz. Original, Appellate and Revisional, three independent Branches should be set up to deal with each of the three categories of cases. On the administration side, there should be an Establishment/Administration Branch and an Accounts Branch. An officer of the level of Section Officer in the scale of ` 6500-10,500 should be Incharge of the Judicial and
Administration Sections respectively. The Establishment/Administration Branch and Accounts Branch should be supervised by an Officer of the level of Section Officer.
Coming now to the staff strength in the Judicial Branches, it may be mentioned that as on 1.11.99. 1285 Original Petitions are pending. The entire work load is being handled by one UDC and one LDC. On account of acute shortage of staff, we are even utilizing the service of two Class –IV officials to assist the Original Branch staff. Considering the volume of work and highly inadequate staff, there is an utmost need to augment the strength of the Original Branch. While determining the staff strength of the District Forum and the State Commission, it has been stated that not more than 250 files should be earmarked for a seat to be manned by a Dealing Assistant and LDC. Adopting the same criteria, five Assistant and five LDCs should be provided for the Original Branch. In other words, four more posts of Assistant and four posts of LDCs should be created to cope with the existing load of work.
2,627 Appeals are pending at present. There is only one Assistant in the Branch. Here again, the services of Class-IV officials are being utilized. Needless to say that the lone officials in the Branch is over-burdened and staff strength must be increased commensurate with the work load. The follow up action in Appeals and Revisions is somewhat less compared to Original Petitions. It therefore seems appropriate that posts should be created on the basis of 500 files per seat. Considering the pendency, the work must be apportioned among five seats, each of which must be manned by an Assistant and LDC. To put it concretely, at least five Assistant and five LDCs should be posted in the Branch.
The pendency in the Revision Petition Branch is the highest. 4,104 Revision Petitions are pending. Only three LDCs assisted by a couple of Class-IV officials are looking after the work of the Branch. The Revision Petitions filed in the Commission are first listed before the Commission and depending upon the order passed, follow up action is taken by the officials. To handle this work load, there should at least be eight Assistant and eight LDCs.
In the Administration Branch, we have only one Upper Division Clerk. He is looking after the purchase of stores and stationery items. This Branch also deals with establishment matters which are dealt with by the Assistant Librarian because no official has been earmarked for establishment matters. Section Officers of Revision Petition Section is looking after the work of Administration/Establishment/Accounts Branch in addition to his duties. It is, therefore, incumbent that there should be an independent Section Officer, one Assistant and one UDC to look after Establishment/Administration/Accounts matters.
In Accounts Branch, only one Assistant has been provided. He does not possess any accounting qualification like S.A.S. It is pertinent to mention that deposits are made in this Commission by the contending parties, in accordance with the orders of the Commission. Handling of these deposits, viz. obtaining FDRs, enchasing them, making payment to parties etc. entails a lot of accounting work. Accounts Branch dealing with financial matters must, therefore, have an Officer of the level of Accounts Officer with requisite qualification and experience, one Assistant/Treasurer and one type knowing UDC.
There is no post of Translator in this Commission. Govt. of India has recently desired this Commission to forward a proposal for the creation of a post of Hindi Translator and
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Hindi typist. It is therefore, recommended that a post of Hindi Translator in the pay scale of Rs. 4000-6000 and one post of Hindi typist/LDC in the pay scale of Rs. 3050-4590 may be created.
The National Commission is an apex body deciding consumer complaints received from all over the country. Against the decision/order of the Commission, the consumers can approach the Hon‘ble Supreme Court by way of an appeal. The Office has to maintain record of decided cases because the Registry of the Supreme Court calls for the original records from the Registry of the National Commission. Presently, there is no post of Record Keeper and the Commission has disposed of about 9680 cases. In order to maintain the record, one UDC, one LDC and one peon would be required.
A filing counter may be set up in the Commission for receiving complaints, Appeals and Revisions as well as for maintaining institution registers for issue/dispatch of Notices. One post of Assistant and one post of UDC may be created for the filing counter.
There is no satisfactory system of inspection of records by the Counsel/parties. A post of Assistant should be created and the incumbent appointed against this post may receive applications for inspection of records and make available the same under the supervision of the Registrar.
The National Commission is maintaining a Library for reference purposes, for which one Assistant Librarian and one Junior Library Attendant have been provided. As earlier stated, the Assistant Librarian is also looking after the establishment matters and, therefore, Is unable to devote to his work whole-heartedly. A post of Librarian may be created in addition to the post of Assistant Librarian and Junior Library Attendant.
There are three cars and two posts of Staff Car Drivers in this Commission. One of the three cars is for the President and thus there is one driver for two staff cars. For the time being, a post of one staff car driver is required to be sanctioned, pending the decision on the availability of independent staff car for each Member.
A post of Despatch Rider is also essential for effecting service of notices issued by this Commission. This will result in considerable saving of postage used for issuing notices along with copies of Original Petitions. Appeals and Revision Petitions to the opposite parties for filing their version of case.
There are two photo-copier machines which are being operated by Class-IV officials. These machines are highly sensitive and unless these are handled by trained operators, there may be technical and operational problems. It is, therefore, proposed that two posts of photo-copier operators may be created.
One Daftry for each of the Judicial Sections, Administration Section and Accounts Section may also be provided for arranging the record in the Branches.
One peon each may be provided in the three Judicial Branches, one in the Administration Branch and one in the Accounts Branch. Thus five posts of peons may be created.
The Office of the Commission is located on the 5th Floor in ‗A‘ Wing and 7th Floor in ‗B‘ Wing of Janpath Bhawan. One sweeper may be posted on each of the two floors for cleanliness of the building. There should also be two posts of Chowkidar.
In view of the position, as explained above, the following staff will be necessary for the National Commission:
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Registrar : 1
Joint Registrar : 1
Deputy Registrar : 2
Assistant Registrar : 2
AR-cum-PPS : 1
PPS : 4
Sr. P.A. : 1+4
Court Master : 2
Accounts Officer : 1
SOs : 4
Librarian : 1
Grade ‗B‘ Stenographer : 1 (for Registrar)
Grade ‗C‘ Stenographer : 3 (for Joint Registrar and Deputy Registrar)
Grade ‗D‘ Stenographer : 2 (for Assistant Registrar)
Assistants : 22
Original Petition : 5
First Appeal : 5
Revision Petition : 8
Establishment : 1
Accounts : 1
Filing Counter : 1
Inspection Branch : 1
U.D.C. : 4
Record Room : 1
Filing Counter : 1
Administration : 1
Accounts : 1
L.D.C. : 19
Original Petition : 5
First Appeal : 5
Revision Petition : 8
Record Room : 1
Hindi Translator : 1
Hindi Typist : 1
Asstt. Librarian : 1
Junior Library Attendant : 1
Daftry : 5
Staff Car Driver : 3 (one for President and two for the Office)
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Jamadar : 1
Peons : 21
Despatch Rider : 1
Photo-copier Operator : 2
Sweeper : 2
Chowkidar : 2
STATE CONSUMER DISPUTES REDRESSAL COMMISSIONS Section 16 of the Consumer Protection Act lays down that a State Commission shall consist of a President and two Members. The President of the State Commission has to be a person who is or has been a judge of the High Court. A Judge of a High Court is entitled to the following staff; in addition to three peons
i) PPS/PS (In the pay scale of ` 10,000-15,200)
- 1
ii) Personal Assistant (In the pay scale of ` 5500-9000)
- 1
iii) Staff Car Driver (In the pay scale of ` 3050-4590)
- 1
The President of the State Commission may be given this staff. As regards
Peons, a consolidated recommendation is being made separately, out of which the President may have peons.
For Members personal staff may consist of two Stenographers in the pay scale of ` 5500-9000 and 2 Peons in the pay scale of ` 2550-3200.
A Court Master/Reader may be provided to assist the President and Members of the State Commission in the Court. This officer should be in the pay scale of ` 5500-9000.
The State Commission should have a Registrar in the pay scale of ` 8,500-
13,500/. He will assist the State Commission in all judicial and administrative matters. A shorthand knowing LDC in the pay scale of ` 3050-4590/- who may work as Personal
Assistant to the Registrar and one Peon may be provided to him.
The State Commission exercise Original, Appellate and Revisional jurisdiction. Therefore, two sections may be created – one for the Original Petitions and the other for Appeals and Revisions. A post of Administrative Officer (Class-II) may be created for an overall charge of these Sections. Each section should be headed by an officer of the rank of Dy. Superintendent in the pay scale of ` 5000-8000. In each of these judicial
sections, seats of dealing assistant may be created to handle 250 files per seat. The dealing assistant should be assisted by an LDC. Thus one Assistant and one LDC should be
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provided in each of the two sections for every 250 files. The total number of staff in the judicial sections can, therefore, be worked out keeping in view the total number of pending files dealt with therein and adopting the criteria of 250 files for one Assistant and one LDC. Besides, one Peon may be posted in each section.
In the State Commissions, orders are at times dictated in regional language because the consumers are not conversant with the English language. We, therefore, recommend that a post of regional language, Stenographer in the scale of ` 4000-6000 may be created.
A Post of Assistant and a type knowing LDC may also be created for the Establishment/Administration Branch.
Accounts Branch of the State Commission should be supervised by an Accountant in the pay scale of ` 5500-9000. One Bill Clerk and a type knowing LDC may be provided in
the Accounts Branch for its smooth functioning.
A good Library is absolutely essential for a quasi-judicial body like the State Commission. Therefore, a trained Librarian in the pay scale of ` 5500-9000 may be posted for manning the library.
A filing counter may be created for receiving complaints, appeals and revisions, for maintaining institution registers and issue/despatch of notices. There should be two clerks and one peon for the Filing Counter in the pay scale of ` 3050-4590 and ` 2550-3200
respectively.
An LDC and one Peon will be necessary for inspection of record which will be made available by them under the supervision of the Registrar.
A record room may be set up in each of the State Commissions for keeping files of decided cases. One LDC and one Peon may be posted in the record room for arranging files, entering in the Access register and for weeding out the record.
A Post of Despatch Rider is also essential for effecting service of notices issued by the State Commission. This will save considerable amount incurred on postage for sending copies of the complaints appeals revision petitions to enable the opposite party(s) to file its/their versions of the case.
Two posts of Daftry, two posts of Sweeper and two posts of Chowkidar may also be sanctioned, keeping in view the requirements of the office as well as the President and Members of the Commission.
To sum up, the staff requirement of the State Commission will be as under:-
For President i) PPS/PS - 1 ii) PA - 1 iii) Staff Car Driver - 1
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For Members
i) Stenographers - 2
For Office
i) Registrar - 1
ii) A.O. (Group ‗B‘) - 1
iii) Dy. Superintendent - 2 (1each for Original
and Appellate/
Revision Sections)
iv) Court Master - 1
v) Accountant - 1
vi) Librarian - 1
vii) Assistant (s) for
Branches
viii) Regional language
Steno.
- 1
ix) LDC(s) for
Branches
x) P.A. to
Registrar/Shorthand
Knowing LDC
2
xi) Filing Clerks (LDC) - 1
xii) Inspection Clerk
(LDC)
- 1
xiii) Record Keeper
(LDC)
- 1
xiv) LDC for Estt.
Branch
- 1
xv) Bill Clerk (LDC) - 1
xvi) Typist (LDC for
A/cs. Branch)
- 1
xvii) Despatch Rider - 1
xviii) Daftry - 2
xix) Peons - 10 (for President,
Members,
Registry, two
branches and five
Offices)
xx) Sweeper - 2
xxi) Chowkidar - 2
Note: One Assistant and One LDC for every 250 pending files. The number of Posts may Be sanctioned keeping in view the total pendency.
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For the States which have a pendency of less than 500 cases, the staff strength shall be as follows :
For President 1. PPS/PS : 1 2. P.A. : 1 3. Staff Car Driver : 1
For Members
1. Stenographer : 1
For Office 1. Registrar : 1 2. Court Master : 1 3. Accountant : 1 4. P.A. to Registrar : 1 5. Assistant : 1 6. U.D.C. : 1 7. L.D.C. : 1 8. Typist : 1 9. Peons : 1 10. Chowkidar : 1 11. Sweeper : 1
This staff shall look after the judicial, the administrative and the library work.
Consumer Disputes Redressal Forums
Section 10 of the Consumer Protection Act lays down that each District Forum shall
consist of a President and two other Members. The President of the District Forum has to be a person who is, or who has been, or is qualified to be a District Judge.
In Writ Petition (Civil) No. 1141 of 1988, Common Cause vs. Union of India & Ors. the Hon‘ble Supreme Court on 7th January, 1993 directed that if the work load of a District Forum exceeds the minimum monthly load of 150 cases consistently for a period of six months, a regular independent District Forum as envisaged by Section 9 of the Act should be established.
A District Judge is an Officer in the scale of ` 18,400-22,400, which is equivalent to the scale of Joint Secretary to the Govt. of India. Govt. of India‘s instructions provide that a Joint Secretary is entitled to a Private Secretary in the scale of ` 6500-10,000 and a peon in the scale of ` 2550-3200. As regards the two Members of the District Forum, one
stenographer in the scale of ` 4000-6000 and one peon in the scale of ` 2550-3200 may be
provided for them. There should also be a post of Court Master in the pay scale of ` 5500-9000 to assist the President and the Members in the ‗Court‘.
The Registry of the District Forum should be headed by the Registrar who should be of the rank of Superintendent in the State Government, which post carries the pay scale of
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` 5500-9000. His duties will involve assisting the Forum in Judicial and administrative matters
The District Forum exercise only Original Jurisdiction. With a view to create seats of dealing hands in the Judicial Section, the work load should first be assessed in terms of pending files. These files may be assigned to various dealing hands who will be responsible for taking all follow-up action as per the orders of the Forum/Bench. Each dealing hand of the level of UDC, assisted by an LDC, should handle at least 250 files. Thus, taking into consideration the total number of pending files and the yardstick of 250 files for a nucleus of one UDC and one LDC, the staff requirement in the Judicial Section may be worked out. One peon will also be required for the Judicial Section.
The Registrar of the District Forum may also look after the work relating to maintenance of Library, preparation of pay bills, T.A. bills etc. and for maintaining the books of accounts and keeping the bank guarantees which are taken from the parties in pursuance of the orders of the District Forum. However, one accounts knowing UDC in the scale of ` 4000-6000 may assist the Registrar in the work.
Presently there is no satisfactory arrangement for receiving the complaints and for issue or dispatch of notices as well as inspection of cases in the Forum. There should be one post of Clerk in the scale of ` 3050-4590 for receiving the complaints, maintaining the
institution registers and issue or dispatch of notices and inspection of cases.
A post of Despatch Rider is also essential for effecting service of notices issued by the District Forum. This will save considerable amount incurred on postage for sending copies of the complaints to enable the opposite party (s) to file its/their version of the case.
There is an absence of a Record Room in most of the District Forum, as a result of which the files are not properly arranged and entered in the Access Register. The decided cases, therefore, cannot be traced out without avoidable loss of time. To begin with, one LDC and one Peon should be provided with duties of arranging the files in the Record Room, entering the same in the Access register and to take follow up action for weeding out the old records.
One post of Safaiwala/Chowkidar be also sanctioned for cleanliness of the office of the forum.
In view of the position, as explained above, the following staff will be necessary for a District Forum :-
1. P.S. : 1
2. Registrar (in the scale of
Superintendent)
: 1
3. Court Master : 1
4. Steno : 1
5. U.D.C. : 1
6. L.D.C. : 1
7. Receipt & Despatch Clerk (LDC) : 1
8. Record Keeper (LDC) : 1
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9. Accounts Knowing UDC : 1 (will look after the
library work)
10. Peons : 4
11. Safaiwala : 1
12. Despatch Rider : 1
13. Chowkidar : 1
Note: One UDC and one LDC for every 250 pending files. In the smaller districts where less than 150 cases are pending, the strength will be UDC-1, LDC-1, 3 Peons, 1 Chowkidar cum Safaiwala. The UDC will look after the library work also.
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ANNEXURE VI
SHENOY COMMITTEE REPORT
Recommendations of the Committee Constituted under the Chairmanship of Dr. P D Shenoy, Member, NCDRC, to consider the following issues:
(i) To examine the administrative and financial powers of the Presidents of the State
Commission and make recommendations to ensure the effective functioning of the State and District Fora.
(ii) To study the imposition of cost and levying of fees by the State and District Fora and to suggest guidelines for their proper and effective utilization.
(iii) To examine the necessity of conducting induction training to the new Members of the State and District Fora and make suitable recommendations.
(iv) To suggest suitable guidelines for grant of pay and perquisites to the Members of the
State and District Fora.
The following Members were present:
1. Hon‘ble Mr Justice N K Jain, President, Madhya Pradesh State Consumer
Disputes Redressal Commission
2. Hon‘ble Justice Mr B B Vagyani, President, Maharashtra State Consumer Disputes Redressal Commission
3. Hon‘ble Justice Mr R C Kathuria, President, Haryana State Consumer Disputes Redressal Commission.
The recommendations of the Committee are as follows:
1. To examine the administrative and financial powers of the Presidents of the
State Commission and make recommendations to ensure the effective
functioning of the State and District Fora.
In order to translate the mandate, of the Hon‘ble Supreme Court in the case of State of Uttar Pradesh vs Jeet Singh Bisht and Others, (Special Leave Petition No. 6928 of 1999) as per order dated 10th July, 2002 as well as the State of Rajasthan and Others vs Anand Parkash Solanki, (Civil Appeal No. 6733 of 2003) as per order dated 25th August, 2003. (Annexure ‗A‘ & B) into a reality and to have effective control over the functioning of the State Commissions and the District Fora in terms of the Provisions of Section 24 B of the Consumer Protection Act, 1986;
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It is recommended that various State Governments may incorporate the following Rules in their existing Consumer Protection Rules;-
(a) The President of the State Commission shall be Head of the Department and Controlling Authority for the purposes of Book/ Code of Financial Powers.
(b) Appointment of Officers and staff (except the President and Members) of the District Fora and State Commission shall be made by the President of the State Commission;
Provided that the cadre, number, salaries and allowances of such officers and staff shall be fixed by the State Government by Rules to be made in consultation with the President of the State Commission.
(c) Salaries of such officers and staff shall be defrayed out of the consolidated fund of the State.
2. To study the imposition of cost and levying of fees by the State and District
Fora and to suggest guidelines for their proper and effective utilization.
It is suggested that Regulation 11 (5) which provides for imposition of minimum cost need to be amended and it should be left to the discretion of the Commission or the District Forum concerned to decide about the quantum of cost depending on the facts and circumstances of each case.
As regards utilization of costs, the National Commission may frame appropriate Regulations provided for the purpose and manner of utilizing this amount. For this purpose, guidelines contained in the Legal Services Act, may be followed.
Fees for filing complaints of the valuation upto Rs.10,000/- should be NIL and accordingly Rule 9 A of the Consumer Protection Rules 1987 (Central Rules) may be amended.
With regard to payment of fees on complaints, existing Table of Rule 9 A of Consumer Protection Rules, 1987 may be substituted by the following Table:
S No. Total value of goods or service and the compensation claimed
Amount of fee payable
(1) (2) (3)
DISTRICT FORUM
1. Upto to one lakh rupees – For complainants who are under the Below Proverty Line holding Antyodaya Anna Yojana cards
NIL
1 A. Upto Rs.10,000/- NIL
2. Upto one lakh Rupees – For complainants other than Antyodaya Anna Yojana card holders
` 100/-
3. Above one lakh and upto five lakh rupees ` 500/-
4. Above five lakh and upto ten lakh rupees ` 1000/-
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5. Above ten lakh and upto twenty lakh rupees ` 2000/-
STATE COMMISSION
6. Above twenty lakh and upto fifty lakh rupees ` 5000/-
7. Above fifty lakh and upto one crore rupees ` 10,000/-
NATIONAL COMMISSION
8. Above one crore rupees ` 25,000/-
9. Above five crore rupees ` 50,000.-
10. Above ten crore rupees ` 1,00,000/-
3 To examine the necessity of conducting induction training to the new Members of
the State and District Fora and make suitable recommendations.
At present help is being taken of the Indian Institute of Public Administration (IIPA) for
imparting training to the Members of the State Commission as well as Presidents and Members of the District Fora which is being monitored at the level of the National Commission. The programme and orientation training needs to be de-centralized at the Headquarter level of the respective State Commissions by introducing 15 days training programme to the newly inducted Members of the State and District Fora including the Presidents of the District Fora so as to equip them with regard to the procedure to be followed while conducting the complaint cases so as to help them to avoid illegalities being committed for the smooth functioning of the District Fora. The training programme shall take care of following aspects:
1. Consumer Protection Act, 1986 and amendments in the Consumer Protection Act, their judicial implications on different points.
2. A correct approach of the Judgment writing.
3. General principles of Consumer Protection Act to be followed by the Consumer Fora with reference to the settled law by the Hon‘ble National Commission on the procedure of dealing the complaints by District Consumer Fora.
4. Settled law in deciding cases related to HUDA etc., Electricity, Insurance Assurance, Banking and Telecommunications.
5. Procedure of Institution, processing granting of adjournments recording of zimini orders, granting of interim injunctions, maintenance of Institution and disposal register, maintenance of statistical information as per Consumer Protection Act and instructions issued by the Hon‘ble National Commission from time to time.
6. A peep into Civil Service Rules so far as working of the District Consumer Fora is concerned demystified.
7. Canons of filing of properties, purchase procedure, store procedure, writing of loss etc., demystified.
8. Initiating of disciplinary action against the staff under various Rules/ Government instructions issued by the State Government and writing of A C R s.
9. Any other topic suitable for trainees to be selected by the President of the State Commission.
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The State Government shall provide suitable Budget for this purpose and keep the amount at the disposal of the President of the State Commission.
4. To suggest suitable guidelines for grant of pay and perquisites to the Members
of the State and District Fora.
Salary and other allowances of the President of the State Commission and District
Forum (Minus pension drawn, if any)
The service conditions of the President of the State Commission shall be the same
as that of a sitting Judge of the High Court. Member of the State Commission appointed on a whole-time basis shall be entitled to pay and allowance as are available to a sitting District Judge.
Provided that if a Member of the State Commission appointed on a part-time basis he/ she shall be paid Honorarium of not less than ` 1000/- and conveyance allowance of not less than ` 300/- per day‘s sitting.
The President of the District Forum shall be entitled to pay and allowances payable to a sitting District Judge (Minus pension drawn, if any)
Members of the District Forum appointed on whole time basis shall be entitled to not less than ` 15,000/- per month by way of Honorarium plus not less than ` 3000/- as
conveyance allowance per month.
Provided a Member of the District Forum appointed on a part-time basis, he/ she shall be entitled to Honorarium of not less than ` 600/- and conveyance allowance of not less than ` 150/- per day‘s sitting.
Sd/-
[P D Shenoy ] Member, NCDRC
07.05.2008
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ANNEXURE VII
RECOMMENDATIONS ON ROLE OF CONSUMER CLUBS IN
PROMOTING AWARENESS & EDUCATION
Extract from the Report on Role of Consumer Clubs in Promoting Consumer Awareness and Education in India, Conducted by IIPA in 2010
Recommendations
An overall analysis reveals that the scheme on consumer clubs is good as it involves the youth, particularly students of schools in strengthening the consumer movement and creating awareness. The scheme though has many pitfalls as revealed by the survey, it needs to be continued with appropriate modifications. More schools need to be aided to setup the clubs and to monitor, manage, administer and coordinate the scheme an appropriate mechanism is an essential prerequisite.
The following suggestions will help in strengthening the scheme so as to achieve its objectives.
I. Organizational Structure There is a need to set up a proper structure at the National, State and district level to
manage the functioning of the consumer clubs. For effective implementation of the scheme in letter and spirit this streamlined structure is an important prerequisite.
National Level
A National Steering Committee (NSC) under the Chairmanship of Secretary/ Additional Secretary/ Joint Secretary, Department of Consumer Affairs, GoI, may be constituted to guide, oversee and monitor the Scheme. Representatives from Union Ministry of Human Resource Development, Bureau of Indian Standards, Women & Child Development, States‘ Secretaries of Department of Consumer Affairs, Representatives of select Coordinating Agencies and Consumer experts may be the members of this Committee. This Committee will give overall direction to the programmes and ensure linkages at all level. For this the NSC should meet once a year to guide, oversee and monitor the Scheme.
State Level
A State level Steering Committee under the chairmanship of Secretary/ Special Secretary, Department of Food and Civil Supply/Consumer Affairs with members from the State Department of Education; Science and Technology, Environment, Health, Social Welfare and select representatives of Coordinating Agencies may be constituted to oversee the implementation of the campaign at the State level.
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Role of State Level Steering Committee
To coordinate implementation of the Scheme.
To review periodically the implementation of the Scheme and suggest activities to be taken up at the state/ district level.
To nominate State Level Coordinator/s (Faculty member/s from State University on a honorarium)
Coordinator/s will help the Steering Committee in proper implementation of the scheme and perform the following functions;
a. To ensure training programmes for Teacher in Charge in states/districts
b. To ensure distribution of grants and resource material to Consumer Clubs.
c. To receive quarterly reports from District Committees and compile them in the form of reports and send them to Central Nodal Officer in the given format.
d. To organise State Level activities and coordinate them.
e. To organise publicity of the programmes to encourage more schools and students to join consumer clubs.
f. To help the Steering Committee to select the best district, best Consumer Club and give publicity to their activities so that other districts and Consumer Clubs can adopt them.
g. To organise meeting of the State Level Steering Committee twice a year.
District Level
An Implementation and Monitoring Committee may be constituted under the Chairmanship of District Collector/Magistrate of the concerned District to carry out the scheme in the district. All the stake holders such as officials of Food and Civil Supply, Education, Department of Science and Environment, Health Department, Department of Social Welfare; select Representatives of Coordinating Agencies and Eminent Citizens may be the members of this committee. The District Civil Supply Officer or District Education Officer may be the Nodal Officer to manage the consumer club activities.
Role of Implementation and Monitoring Committee
Coordinate, supervise and monitor the implementation of the activities by all the Consumer Clubs in the district.
To review periodically the implementation of the scheme and suggest activities to be taken up at the School level.
To nominate a District Level Coordinator – (Senior lecturer from a college in the district on payment of honorarium)
Coordinator will help the District Administration in proper implementation of the scheme and perform the following functions:
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a. To identify the member schools in consultation with State Nodal Agency.
b. To motivate heads of schools to initiate participation in the Scheme.
c. To identify in-charge teachers in consultation with school Principals and organise training for In-charge Teachers.
d. To distribute resource material to In-charge Teachers at the time of their training.
e. To identify the activities to be taken up at the District level and organise them.
f. To keep the State Nodal Agency informed of the activities undertaken by the individual schools and at the district level in the given format through the District Magistrate.
g. To send the monitoring report to the State Nodal Agency as per the schedule through the District Magistrate.
h. To organise meeting of the District Level Implementation and Monitoring Committee at least twice a year
II. Funding
This seems to be an important aspect as far as the working and survival of the clubs is concerned. The State Government should transfer to the concerned districts well in advance. The funds after being received by the District Collector, the share of each club should be directly given to the school account in the name of the consumer club. At present the entire amount (` 10,000) including the share of the Coordinating Agency (` 2,000) and
the School Clubs (` 8,000) are given to the Coordinating Agencies. The Agencies are supposed to deduct their share and give the remaining amount to the clubs. However in practice this is not being followed. The amount given as financial assistance to the club may also be increased to ` 15, 000/per Club as the previous amount was too meagre to carry
out the activities of the club.
The following changes may be proposed:
1. Initially funds to tune of ` 10, 000/ school were given to the State Nodal Agencies in a consolidated manner. No fund was being given to State Agency to incur their expenditure. However, the State Department has to spend money towards their organizational structure, training, capacity building, publicity material, conducting awareness programmes, etc. Therefore the Department of Consumer Affairs (DCA) may give ` 5- 15 Lakhs (as per the no. of Consumer Clubs and population of the state) to the States, as it would be helpful in setting up a proper mechanism to run the scheme. Nationwide it may cost GoI about Rs 3-4 crores which is a small sum for a big change.
5 Lakhs for Smaller States
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10 Lakhs for Medium States
15 Lakhs for Larger States
2. Required fund for each consumer club: According to the Scheme, a Consumer
Club may be established at the school level. In the first year, each club may get Rs. 10,000 to develop some basic infrastructure. The fund allocation to the different stake holders may be as follows:
State level funding structure (Per consumer club/Year)
S. No. Expenditure Heads Per School
1 Per annum financial support per Consumer Club 15,000
2 One time financial support for infrastructural development to Club*
10,000*
Total Financial support for the first year per Consumer Club
25,000
*Only for the first year of the scheme.
3. Fund distribution at District level: Funds may not be given in consolidated form to the Coordinating Agencies. Out of the Rs. 15,000, the share of different stakeholders i.e. District Coordinating Agency, VCOs and the Consumer Clubs may be as follows:
Fund allocation at District Level (Per consumer club/ Year)
S. No. Stakeholders Per School
1 Directly to Consumer Club (Respected School) 10,000
2 Coordinating Agency (Maximum 20percent of total amount per school)
3,000
3 District Coordinating Department (per school)* 2,000
Total 15,000
* To convene at least two meetings annually for all Club Convener, Coordinating Agency and responsible/assigned District Official. 2. For giving honorarium to District Coordinator if appointed part time to coordinate the Schemes at district level, 3. To organize training programme for the VCOs and Conveners of the club 4. Coordinating Agency
The Coordinating Agency out of the allocated fund of ` 3000/Club should spend:
20 percent of the amount on establishment.
At least 20 percent of the amount on developing reading/ publicity material.
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50 percent on organizing training/workshops.
10 percent on miscellaneous expenditure.
5. Consumer Club
1. One time financial support of ` 10,000 should be spent on infrastructural development like furniture, equipment‘s, drawing boards, stationary items, etc.
2. The annual fund of of ` 10, 000 may be spent by the clubs on various activities like developing resource material, field visit, organizing competitions, celebrating consumer days, inviting experts and other activities.
III. Infrastructure: The Survey has revealed that the required infrastructure for organizing the activities of the clubs is inadequate in most of the schools. Schools which are carrying out certain activities related to the consumer protection are using the schools rooms, computers, etc. which belong to the laboratory of Home Science, Chemistry, room for S.U.P.W. (Socially Useful Productive Work) or craft, etc. Therefore, the club coordinator is unable to plan the activities in advance and has to depend upon the time and convenience of others. Therefore, at least each Club Should have:
one separate room;
adequate furniture;
computer(School can provide)
equipment for testing;
adequate resource material for reference.
Training and Guidance: The results clearly bring out the need for enhancing the capacity of the teacher coordinator of the school. The clubs are not receiving proper guidelines from the coordinating agencies regarding the basic objective of setting of the clubs. Many club members and the convenors are unaware of the scheme and therefore they are not clear about the activities of the clubs and hence unable to plan.
Regular training and guidance on consumer related issues and activities are of prime importance which needs to be embedded in the system /Scheme on Consumer Clubs.
Decentralized Training should be encouraged.
A National level Nodal Agency/Institute/Organisation to be identified to cater to the training needs.
This Agency/Institute/Organisation would train Master Trainers at State Level or tie up with Law Schools and other Institutes for training the Teacher in Charge (Conveners) District/Region wise.
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The District level Steering Committee should also identify and prepare a data base of the resource persons/experts in the field of consumer protection for the Consumer Clubs.
IV. Time Frame and Sustainability of the Scheme: The scheme on consumer clubs should not be time bound as awareness and education related to consumer protection is itself an on-going process. The funding pattern under the Eco-Clubs Scheme of the Ministry of Environment, GoI can be adopted as it is providing financial assistance since 1999. The initial assistance was only of Rs. 4000 / school/annum which has been increased to Rs. 10,000 / school/annum from the 11th Five Year Plan. Similarly looking at the proposed financial assistance for the established Consumer Clubs, the estimated expenditure would be 11 crores/per year approximately. As far as self-sustainability aspect is concerned, it should go hand in hand from the initial stage so that the clubs could nurture themselves well.
V. Participation or Involvement of Principals/Teachers: As per the survey, only the Convener or Teacher in Charge of the Club looks after the activities and functioning of the club. If he/she is not present the activities of the club stops completely. Therefore if another teacher of the school takes active part in the functioning and activities of the club, the overall functioning would improve. Each school should have a convener and a co- convener .The involvement of the head of the institution is also of paramount importance as the activity of the club must be an activity of the school and not left to the convener alone.
VI. Certificate: The Scheme on Consumer Clubs mandates certain activities to be undertaken such as conduct of surveys, debates, exhibitions, celebrations and competition. At present there is no incentive available to the student which attracts them, motivates them and gives recognition to the efforts of the students also to sustain their interest. Certificate of Merit can be issued to all the members of the clubs on the National Consumer Day by a dignitary. As in the case of NCC/NSS efforts can be made to give weightage (Points) to the club certificate acquired by the club member in their higher education.
VII. Field Visits: Advertisements and packaging have a hypnotizing effect on consumers leading to consumer exploitation by the shopkeepers. By visiting manufacturing units, local markets, service sectors like banks, etc .The students can observe whether the products/services are consumer friendly. The field visit would expose them to understand issues more practically and easily. This should be made a compulsory activity. In order to get practical knowledge relating to consumer protection the club members should be taken to the District Forums.
VIII. Outreach of Consumer Awareness: Outreach of the consumer movement is possible only if each and every member of the club speaks up for the cause. This is only possible if club members actively disseminate information by the medium of
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Street Plays, Nukkad Nataks, Symposiums, awareness procession and rallies to educate the members of the society.
IX. Resource Material: In order to enhance the knowledge base of the Club Members as well as Conveners, adequate efforts should be made to develop interesting reading material such as text book lessons, stories, slogans, etc. The clubs should be provided with adequate resource material in the form of books, magazines, pamphlets, cassettes, CDs or any other publicity material for making the students aware and also giving an outreach to neighbouring schools and localities. For this a model resource material should be prepared and uploaded on the website of Department of Consumer Affairs, GoI. This can be downloaded by the State Governments and translated into their regional languages for wider reach. Good resource material would help the convenors to enable the students to understand consumer protection in a better perspective.
X. Increasing the number of Consumer Clubs: To give a wider reach to the consumer movement in the country not only the number of Consumer Club per Districts needs to be increased but the Consumer Clubs should be established in those districts which have not implemented the scheme at present. It is suggested that at least hundred clubs/district should be established.
XI. Visit of Experts to Schools: Experts in different areas may be invited to the schools to disseminate information relating to consumer welfare and general awareness on consumer products and services. The idea is to educate the students. The District level Steering Committee should identify and prepare a data base of the resource persons/experts in the field of consumer protection for the Consumer Clubs.
XII. Role of Coordinating Agency: Role of Coordinating Agency needs to be defined clearly. The coordinating agency would work as a guide, facilitator, and motivator for all the activities related to the scheme.
Help in framing the activity plan of the Consumer Clubs
Arranging the Field Visits for the club members
Providing resource material to the clubs.
Help in identifying and inviting the experts
Organise annual Consumer Club Festival with the help of District Implementation and Monitoring Committee
Providing training to the Conveners
Help the Conveners in maintaining data, records and submission of utilization certificate quarterly
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Further it is the responsibility of the Coordinating Agency to provide the utilization certificate to the Department annually. If UCs are not given in time then the concerned Coordinating Agency should be blacklisted.
XIII. Role of Conveners: The convenors would act as facilitators of the information and knowledge gathered from regular training and guidance in order to bridge the awareness gap. Main functions of the convener should be:
To encourage students to join the club.
To assemble the club members at least once a week to workout and conduct activities of the club
Send quarterly activity report to the District Implementation and Monitoring Committee
Coordinate with the Coordinating Agency for taking up District level common programmes.
XIV. Consumer Education through School Curriculum: In the long run consumer education needs to be integrated in the existing school curriculum in a variety of ways. Most of the consumer issues can be integrated with the existing subject syllabus ranging from humanities to science subjects as adding an extra subject would be a burden on the children. Therefore efforts can be made to add concise content of Consumer Protection in the existing school curriculum.
XV. Inclusion of Activity based Curriculum: Various activities can be undertaken to promote consumerism among students such as debates, essay competitions, declamations, class interactions, projects, painting competitions, exhibitions, rallies, etc. The students can work out solutions to everyday problems which are faced by the consumers. Efforts can be made to include the consumer protection component in the State syllabus.
XVI. Regular Meetings of club convenors, members and coordinating agencies: Coordination between various stakeholders is of prime importance for the success of the scheme. Agencies should not work at cross purpose. Therefore regular meetings between the three and also with other consumer organization, govt. officials, and consumer experts would help in strengthening the consumer movement by further strengthening the clubs.
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ANNEXURE VIII
NOTIFICATIONS FOR CONDUCTIONG EXAMINATION FOR APPOINTMENT OF MEMBERS IN DCDRFs IN THE STATE OF
ANDHRA PRADESH AND MAHARASHTRA
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