Consumer cases drop at state level, rise in districts

HYDERABAD: The cases with the State Consumer Dispute Redressal Commission have drastically decrease after the implementation of the Consumer Protection Act, 2019, which came to effect from July 20, 2020. The reason being, the District Consumer Dispute Redressal Forum’s jurisdiction which was earlier up to an amount Rs 20 lakh, has been increased to Rs 1 crore now. The officials said that it had led to increase in cases at the district level. 

In the Consumer Protection Act, 1986, the complainant had to pay a fee against the claims, in addition to the amount paid towards the service or goods for a refund. Earlier, if the complainant sought Rs 10 lakh as compensation for mental agony caused, the refund amount paid came with 36 or 54 per cent interest, they should pay the corresponding fee to the forum then. 

However, according to the present rules, the complainant need not pay anything for the services below Rs 5 lakh, and no fees on compensation.“This has led the aggrieved parties to exaggerate the compensation amounts. It also led to decrease in the revenues, which was generated in the form of fees collected. Around 70 per cent of the cases are being filed without paying any fees,” said an official concerned with Consumer Commission.

Change in jurisdiction
The District Consumer Dispute Redressal Forum’s jurisdiction, which was earlier up to an amount Rs 20 lakh, has been increased to Rs 1 crore now. With this, even the cases which would seek claims in crores of rupees against the deficiency of service or unfair trade practices are being directed to District Consumer Dispute Redressal Commissions