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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

i

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


ii

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


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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


x

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


xi

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.


xiv

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.


xxvii

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


xxviii

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.


xxix

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.


1

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


2

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


3

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


4

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


5

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


6

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


7

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.


8

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.


9

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


10

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


11

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


12

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.


13

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)


14

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)


15

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


16

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


17

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


18

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,


19

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


20

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.


21

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


22

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.


23

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


24

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


25

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


26

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)


27

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

http://www.indiankanoon.org/doc/1399474/


28

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.


29

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/


30

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


31

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


32

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


33

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;


34

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.


35

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


36

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


37

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)


38

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


39

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


40

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.


41

‗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


42

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


43

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


44

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


45

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


46

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


47

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


48

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


49

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


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


50

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


51

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


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


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


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


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


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


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


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


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



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


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


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



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


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.


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.


60

Table 2.14 Source of Information about Consumer Protection Act

States Source of Information

Family Members /

Friends Media

Lawyer

VCOs

Others


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



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


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



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



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).


63

Figure 2.10


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)


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


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


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



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


65

Reasons for not Filing a Complaint

Figure 2.12


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


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



67

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


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).


68

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.


69

Table 2.20 Why Consumer Protection Movement is Not Successful

Reason

Re

sp

on

se States

G. T

ota

l


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).


70

Figure 2.15


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


%

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


71

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


% 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).


72

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'


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


73

Table 2.23 Source of „JAGO GRAHAK JAGO‟ Campaign

States Source

Television Radio Newspaper/ Magazine /Hoarding

VCOs Others


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


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


74

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.


75

Figure 2.20 Figure 2.21


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.


76

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


77

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


78

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


79

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).


80

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


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


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


81

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


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


Note: Analysis of Members‘ Response


82

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.


83

Table 3.11

Problems Faced in the Functioning by District Forums

Problems

Re

sp

on

se States

G. T

ota

l


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


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


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


Yes No


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



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


86

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


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.


87

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


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)


88

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


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


89

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


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.


90

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


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


92

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


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.


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


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


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


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


Gujarat Karnataka Odisha Tripura G.Total



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


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


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


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


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


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).


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



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,


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?


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.


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


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


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


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


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).


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


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


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


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


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


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


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


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



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


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


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




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


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.


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


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



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


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



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


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



115

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


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.


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

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et

Sta

ff C

ar/

Ve

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oto

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t M

ach

ine

Te

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Fa

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r &

Pri

nte

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t F

ac

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(ta

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, C

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.)

No

. o

f T

yp

ew

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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


118

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


119

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


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



120

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


3.28 Infrastructure and Other Aspects

Table 3.56 Status of Infrastructure in SCDRCs

Particulars State Consumer Disputes Redressal Commissions


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


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


121

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


122

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.

http://business.gov.in/outerwin.php?id=http://ncdrc.nic.in/

http://business.gov.in/outerwin.php?id=http://ncdrc.nic.in/


123

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


124

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 `


125

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


126

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


127

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.


128

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


129

Table 3.65 Statement of First Appeal Cases in National Consumer Disputes Redressal Commission (As On 30th November, 2012)


Year Pending as on

31.10.2012

Instituted during

November, 2012

Restored during

November, 2012


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


130

Table 3.66

Statement of Revision Petition Cases in National Consumer Disputes Redressal Commission (As on 30th November, 2012)


C (Revision Petitions) YEAR

Pending as on

31.10.2012

Instituted during

November, 2012

Restored during

November, 2012


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


131

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



132

Table 3.68 Financial Implication Worked out by the NCDRC


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


133

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


134

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


135

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


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


136

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


137

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


4.4 Adopted Other Mode of Redressal before Approaching the District Forum

Figure 4.2


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


138

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



139

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


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


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


140

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


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


141

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


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



142

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


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).


143

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


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



144

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


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



145

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


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


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


146

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


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


147

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


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


148

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


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



149

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


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



150

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


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



151

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


152

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


153

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


154

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


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


155

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


156

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


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


157

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.


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


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


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


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


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


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


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


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


166

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


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.


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


169

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


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


171

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-


172

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


173

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


174

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


175

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.


176

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


177

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.


178

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


179

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


180

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.


181

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


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



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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


185

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


192

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


194

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


195

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.


209

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.


210

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….


211

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…


212

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

http://ncdrc.nic.in/statistics_files/sheet004.html#_msocom_1


http://ncdrc.nic.in/statistics_files/sheet004.html#_msoanchor_1



213

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










214

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.




215

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


216

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.


217

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


218

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?


219

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?


220

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


221

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


222

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,


223

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


224

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

mailto:[email protected]



225

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]







226

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




227

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


228

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.


229

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


230

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:


231

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)


232

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


233

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


234

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.


235

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


236

` 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


237

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.


238

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;


239

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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