Central govt notifies new rules for enhancing consumer protection

December 31, 2021 Off By administrator


The Centre on Thursday notified rules for Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021.


“In exercise of powers conferred by provisos to sub-section (1) of Section 34, sub-clause (i) of clause (a) of sub-section (1) of section 47 and sub-clause (i) of clause (a) of sub-section (1) of section 58 read with sub-clauses (o), (x) and (zc) of sub-section (2) of section 101 of the Consumer Protection Act, 2019, the Central Government has notified the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021,” the Ministry of Consumer Affairs, Food and Public Distribution said.





According to the notification, district commissions will have jurisdiction to entertain complaints where the value of the goods or services paid does not exceed Rs 50 lakh. Further, the State commissions can look onto complaints in the range of Rs 50 lakh- Rs two crores.


The Consumer Protection Act, 2019 promulgates a three-tier quasi-judicial mechanism for redressal of consumer disputes namely district commissions, state commissions and national commission. The Act also stipulates the pecuniary jurisdiction of each tier of consumer commission.


As per the existing provisions of the Act, District Commissions have jurisdiction to entertain complaints where value of the goods or services paid as consideration does not exceed Rs one crore. State Commissions have jurisdiction to entertain complaints where value of the goods or services paid as consideration, exceeds Rs 1 crore, but does not exceed Rs 10 crore rupees and National Commission has jurisdiction to entertain complaints where value of goods or services paid as consideration exceeds Rs 10 crores.


After the Act came into force, it was observed that the existing provisions relating to pecuniary jurisdiction of consumer commissions were leading to cases which could earlier be filed in National Commission to be filed in State Commissions and cases which could earlier be filed in State Commissions to be filed in District Commissions.


“This caused a significant increase in the workload of District Commissions, leading to rise in pendency and delay in disposal of cases, defeating the very object of securing speedy redressal to consumers as envisaged under the Act,” the ministry said in its official release.


With regard to revision of pecuniary jurisdiction, Central Government held wide consultation with States/UTs, consumer organizations, law chairs etc. and examined the issues that had created long pendency of cases in detail.


With notification of the aforementioned rules, the new pecuniary jurisdiction, subject to other provisions of the Act, shall include some changes.


Firstly, District Commissions shall have jurisdiction to entertain complaints where value of the goods or services…

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