Conference of Presidents of State Commissions and Secretaries (Consumer Affairs) of the States/Union Territories

 to review the functioning of Consumer Fora

on 15th and 16th March, 2007

at Scope Convention Centre, Scope Complex,

7, Lodhi Road, New Delhi.

 

AGENDA

 

S. No.

Items

Pages

1.

Utilisatioan of Grant given by the Central Government under the ‘Integrated Project’ for strengthening the infrastructure of State Commission/District Fora in the country

1 - 2

 

 

 

2.

Subjects affecting the Consumers

3

 

 

 

3 (a).

Pendency & disposal of cases and steps to be taken for effective functioning of the Consumer Fora

4 – 6

3 (b).

Initiate action well in advance for filling up the vacancies of the Presidents & Members of the Consumer Fora by preparing a Panel of selected candidates

7 – 8

3 (c).

To consider re-appointment of the Presidents/Members, who are having good records

 9

 

 

 

3 (d).

Clubbing of the District Fora where pendency is less

10

 

 

 

4.

Setting up of additional Fora where pendency is more

11 – 12

 

 

 

5.

Holding of regular Conferences of Presidents and Members of the District Fora and Members of the State Commissions

13 – 14

 

 

 

6.

Computerisation  and Computer   networking of  Consumer Fora  under the “Confonet Project”

15 - 17

 

 

 

7.

Alternative disputes resolution mechanism in the form of Lok Adalat for speedy disposal of consumer cases

18 – 19

 

 

 

8.

Constitution of a panel of Doctors at State level for getting assistance in medical matters pending before the Consumer Fora

20

 

 

 

9.

Power vested with the President, NCDRC and State Commission to withdraw judicial work from any President/ Member of State Commission/ District Forum

21  - 22

 

 

 

10

Non-implementation of Orders of Consumer Fora

23

 

 

 

11.

Utilisation of fee for filing Complaint

24

 

 

 

12.

Uniform payment (Salary/perks) to Members of the State Commissions & District Fora

25

 

 

 

13.

Implementation of the Consumer Protection Regulations, 2005

26

 

 

 

14.

Implementation of the provisions of Right to Information Act, 2005

27 – 28

 

 

 

15.

Annexure – I (Guidelines for utilisation of Grant released under the scheme Integrated Project)

29 – 32

16.

Annexure – II (Assistance released under the Scheme Integrated Project)

33

17.

Annexure – III (Statistics of National Commission & State Commissions)

34

18.

Annexure – IV (Statistics of District Fora)

35

19.

Annexure – V (Vacancy Position)

36

20.

Annexure – VI (Functional & Non-functional State Commission, and District Fora)

37

21.

Annexure – VII (Hardware supplied to Consumer Fora in Phase – I & Phase – II)

38 – 39

22.

Annexure – VIII (Cases disposed of by Lok Adalats)

40

23.

Annexure – IX (Statement of Honorarium)

41 – 46

24.

Annexure – X (Infrastructure facilities available in the State Commissions)

47 - 48

 


 

CONFERENCE OF PRESIDENTS OF STATE COMMISSIONS AND SECRETARIES IN-CHARGE OF CONSUMER AFFAIRS OF THE STATE GOVERNMENTS/ UNION TERRITORIES TO REVIEW  THE   FUNCTIONING  OF  CONSUMER  FORA ON 15TH & 16TH MARCH, 2007 AT SCOPE CONVENTION CENTRE, SCOPE COMPLEX, 7,  LODHI ROAD, NEW DELHI.

 

 

Agenda Item No. 1

 

Utilisatioan of Grant given by the Central Government under the ‘Integrated Project’ for strengthening the infrastructure of State Commission/District Fora in the country:-

 

          The scheme of Integrated Project on Consumer Protection envisages extending further financial assistance to the States/UTs to supplement their efforts in strengthening the infrastructure of consumer fora.  Assistance is being extended to meet the critical gap in infrastructure so as to provide a minimum level of facilities to these consumer fora for making them fully functional. Assistance is being extended based on the norms (infrastructural benchmark) of Rs.36.00 lacs for a District Forum and Rs.90.00 lacs for a State Commission, formulated by the Department of Consumer Affairs and the guidelines adopted thereafter by the Committee, functioning under the Chairpersonship of Additional Secretary, Department of Consumer Affairs, Government of India. The norms and guidelines have already been circulated to all States/UTs before the last meeting with Secretaries In-charge of Consumer Affairs in States/UTs, held on 25.8.2006. The guidelines issued by the Department of Consumer Affairs is annexed as Annexure - I.

As on 21.2.2007, a total amount of Rs. 21,17,88,000 has been released so far as first Installment to 10 eligible States under this scheme. The details of the assistance sanctioned and the amount released to these States may be seen in the table at Annexure – II.

In case of non-building assets, the assistance is being released in one installment, while in case of building assets, the assistance is being released in two installments – the second release being subject to the State Government reporting satisfactory progress in utilization of the first installment. Normally progress will be taken as satisfactory, if utilization is 100% in respect of the amount of grant released for non-building assets and a minimum of 50% in respect of the amount released in the first installment for building assets. State Governments are expected to fully utilize the portion of the grant meant for non-building assets by 31-3-2007 or six months from the date of issue of the sanction letter releasing the first installment, whichever is later and for the buildings by 31-3-2008, submit their utilization certificates in the prescribed performa by the date. 

The State Governments/UTs are requested to utilize the Central Government Grant immediately.

        The Secretaries may further deliberate upon the issue.

 


Agenda Item No. 2

 

Subjects affecting the Consumers

 

 

i)                   Electricity - The cases of ‘Over Billing’ by the State Electricity Boards/ Transmission Distribution Companies on the alleged ground of ‘theft’ and other electricity related matters may be discussed in the presence of the Secretaries, Consumer Affairs of the State Governments so that they can throw some light on the subject, particularly in the context of powers under the Electricity Act, 2003.

ii)                 Housing – It is a high time for the State Governments to control the ‘unfair trade practices’ adopted by Housing Boards and/or Private Agencies, relating to their liabilities in cases of delay in construction. Whether the State Governments can prepare appropriate Rules to control such and other related unfair trade practices in the Sector?

 

        The matters may be discussed further in the Conference.

 

 

 

 

 


Agenda Item No. 3 (a)

 

Pendency & disposal of cases and steps to be taken for effective functioning of the Consumer Fora:-

 

          In compliance with the provisions of Section 24B of the Consumer Protection Act, 1986, all the State Commissions are required to furnish statistical data, in the prescribed proforma, in respect of the cases filed, disposed off and pending before them.

The said statistical information is useful not only for monitoring the functioning of the Consumer Fora in the States but also is helpful to suggest remedial action.                                   The replies to  the Parliament Questions and  Questionnaire of the  Standing  Committee of the Parliament  are  prepared on the basis of information received from the State Commissions.  Most of the State Commissions/District Fora are sending their reports/statistical information regularly. However, still some of the State Commissions/District Fora are not sending the statistical information on regular basis. 

Further, to review the functioning of each District Forum, the statistical information regarding filing, disposal and pendency in respect of all the Consumer Fora is required individually.  Therefore, all the State Commissions are required to collect the said information from each of the District Forum and the District Forum-wise information, in the form of a consolidated statement, may be sent to the National Commission as requested for.

All the State Commissions/District Fora are requested to send their reports/information on regular basis to the National Commission as well as Department of Consumer Affairs, Government of India.

As on 28.02.2007, the overall disposal rate is 90.33% in respect of the District Fora, 72.31% in respect of the State Commissions and 80.60% in respect of the National Commission.  On perusing the overall disposal rate, in spite of lack of funds, manpower and infrastructure, it is clear that the disposal rate is a trendsetter for all quasi-judicial organizations.

          Though, the overall disposal rate in the Consumer Fora is quite satisfactory yet there are several District Fora and State Commissions, where the pendency of the old cases is very large.  To reduce the pendency of these old cases, an endeavor be made to dispose of these old cases on priority basis so that the stipulated time  limit mentioned in the Consumer Protection Act, 1986 may be adhered.    

At present, only the quarterly reports are  being furnished by the State Commissions in respect of the information regarding filing, disposal and pendency of the cases before the State Commissions and District For a, but the Department of Consumer Affairs, Government of India has now impressed upon on all the Department of Consumer Affairs in the State Governments/UTs to furnish the monthly and quarterly reports on regular basis.

In view of the above, the Registrars/Secretaries of all the State Commissions are requested to furnish the above data in respect of the State Commission and  each of the District Forum functioning in the State  and also send a separate list of pending cases year-wise, district-wise so that in future their problems relating  to their work load can be discussed in the Conference.

Statements containing pendency of cases in the National Commission, State Commissions and District Fora are annexed as Annexures III & IV respectively.


Agenda Item No. 3 (b)

 

Initiate action well in advance for filling up the vacancies of the Presidents & Members of the Consumer Fora by preparing a Panel of selected candidates.

 

It is the responsibility of all the Consumer Fora to dispose of the cases within the time limit as stipulated in the Act.  One of the main reasons, for delay in disposal of cases is vacancies of the posts of President/ Member in the State Commissions/District Fora.  It has been reiterated time and again in all the Conferences/ Meetings held earlier to prepare an advance Panel of selected candidates and fill up the post immediately from the said Panel.  Hon’ble President of National Commission, during his visit to the States, also impresses upon the State Governments  to advertise the vacancies and to prepare a Panel, well in advance.   The vacant posts of Presidents/Members of the Consumer Fora should be filled up immediately for their  smooth functioning and for timely disposal of cases.

However, even after repeated requests, most of the State Governments/UTs are not preparing an advance Panel of selected candidates and posts are lying vacant for months together and  even after recommendations of the Selection Committee, appointments  are  not taking place in time.  It is made clear that the recommendations made by the Selection Committee should generally be accepted by the State Government.  Accordingly, all the Secretaries In-charge of Consumer Affairs of the State Governments/ Union Territories are requested to take necessary steps in this regard.  A statement showing the vacancy position in the State Commissions and District Fora is enclosed as Annexure – V.

All the vacant posts of the Presidents and Members should be filled up at the earliest.               

Due to the vacancies of Presidents & Members, 22 District Fora are non-functional.

A statement showing the numbers of functional/non-functional State Commissions and District Fora is enclosed herewith as Annexure - VI

         


Agenda Item No. 3(c)

 

To consider re-appointment of the Presidents/Members, who are having good records:-

 

          It was also unanimously resolved in the earlier Conferences that to make the State Commissions/District Fora functional and to avoid the lengthy procedure for filling up vacant posts , the State Governments in terms of the Consumer Protection Act, 1986 may consider re-appointment of  the  Presidents/  Members,  who  are  having  a  good record of performance during their tenure.  In this way, the Fora can get an experienced person and  work  in the Fora  will not hamper due to vacancies.                           

 


Agenda Item No. 3 (d)

 

Clubbing of the District Fora where pendency is less :-

 

          Though, no specific data is available  district-wise in respect of  the cases filed, disposed off and pending with  the State Commissions,  President of the National Commission while visiting the State Commissions, has pointed out that there are several District Fora, where filing of cases are very few and to retain the District Forum in such District is not viable.  Accordingly, it was suggested that  State Government on the recommendation of the President of the State Commission may club such a District Forum with the  nearby District Forum in the State so that the manpower and infrastructure may be utilized optimally.  The State Governments may consider this aspect of the matter.

 


Agenda Item No. 4

 

Setting up of additional Fora where pendency is more :-

 

          The  Parliament Committee of the Department of Consumer Affairs, Government of India suggested that additional Fora be set up where pendency is large. Accordingly, the following States were requested to create  additional Benches shown against each and the matter was also discussed in the Conference held on 17.8.2005. The following States have to set up the additional Benches:

          States                                     Additional Benches

1.      Andhra Pradesh                              1

2.      Bihar                                                 2

3.      Delhi                                                 3

4.      Gujarat                                              3

5.      Haryana                                            4

6.      Karnataka                                         2

7.      Kerala                                               2

8.      Madhya Pradesh                             2

9.      Maharashtra                                     5

10.    Orissa                                               4

11.    Punjab                                              3

12.    Rajasthan                                         5

13.    Tamil Nadu                                                3

14.    Uttar Pradesh                                   6

15.    West Bengal                                    1

 

However, till date, only the States of Uttar Pradesh, West Bengal, Maharashtra, Gujarat have taken steps to create additional Benches in the State Commissions.

The suggestions are also being received from the State Commissions that there are several Districts, particularly in urban areas, where the awareness among the consumers is very high.  Consequently, filing of consumer cases is also very high.  In such a situation, setting  up of additional District Fora was proposed and some State Governments have already taken  steps in this regard.  Hence,  the other State Governments, where pendency is large, may also take necessary steps for creating additional District Forum.     

       


Agenda Item No. 5

 

Holding of regular Conferences of Presidents and Members of the District Fora and Members of the State Commissions :-

 

          After visiting and monitoring the functioning of different State Commissions and District Fora in the country and with a view to attain the speedy disposal of consumer cases pending before the State Commissions/ District Fora, the Hon’ble President of the National Commission has written to all the Presidents of the State Commissions to hold  regular Conferences of the Presidents and Members of the District Fora and Members of the State Commission.

          The main purpose of such Conferences  is to impart training to the newly appointed Members. Besides, the Presidents of the State Commissions will also have an opportunity to interact with all the Presidents and Members of the District Fora  to assess their performance as well as to know the problems being faced by them.

          It has, further, been suggested by the Hon’ble President of the National Commission that teachers/ professors of Law colleges and also some law students of 5 years LL.B course, who are willing, may be invited to render assistance. The Conference will also help  as an in house monitoring mechanism, to give a flip to new initiatives  and also to watch the progress of implementation of the Act. Further, the Fora, which have the networking facilities on their computer may also apprise about the progress on monthly basis.  Secretaries In-charge, Department of Consumer Affairs in the State Governments/ Union Territories are impressed upon   to participate in such Conferences organized by the State Commissions and also to provide the financial assistance to meet the expenses in conducting such Conferences. 

 

 


Agenda Item No. 6

 

Computerisation  and Computer   networking of  Consumer Fora  under the “Confonet Project”.

 

A scheme for “Computerization and Computer Networking of Consumer Fora in the Country” amounting to Rs.48.64 crores has been launched through National Informatics Centre (NIC) as a turnkey project to be implemented in three phases in three years from 2004-2005. The objective of this scheme is to provide I.T. solutions in order to achieve e-governance, transparency, efficiency of consumer fora and  to facilitate disposal of cases in a time bound manner. Under the scheme, the  NIC is providing the necessary hardware, system software, developing application software and will provide maintenance as well as necessary training to the officials of the Consumer Fora. The scheme will help in systematizing processing of various types of cases, data & generation of reports and also facilitate better administrative control. According to the MoU singed between the Central Government, State Government and the NIC, after completion of  the ‘CONFONET’ Project, the States would be required to own and utilize the project w.e.f. 1.4.2007.

This scheme would enable consumers to file their complaints online and to see the status of their cases on the website. Under the scheme all consumer related websites i.e. those of National Commission, State Commissions and District Fora, the Department of Consumer Affairs at the Centre as well those of States/UTs, CORE centre, National Consumer Helpline etc. will be interlinked so that consumers can access any consumer related information from any of these websites. In order to ensure that the project is successfully completed on time, the States/UTs are requested to make all out efforts in removing all the hurdles and ensure its smooth implementation in coordination with the  NIC and the Consumer Fora.

As reported by NIC, the NIC has supplied hardware to 33 State Commissions and 533 District Fora. Out of these 566 locations, installations have been completed at 180 locations. Installation is pending in 386 locations due to non-availability of the installation facilities e.g. power points, cabling, furniture etc. As per the policy decision, the NIC is also allocating a sum of Rs.60,000/- & Rs.30,000/- for State Commission and each District respectively for computer site preparation subject to the condition that the work be carried out by PWD or any other Agency, certified by the State Secretary. The Secretary, Department of Consumer Affairs, Government of India  has directed that all out efforts should be made to speed up the installation of hardware and software with network connectivity at all the locations, where computers have been supplied.

The NIC is also providing training to the Members of staff of the State Commissions and District For a. The controlling Agency for implementing the Project is State Information Officers (SIOs) and District Information Officers (DIOs) at State and District levels respectively. The National Commission has already provided necessary inputs for developing the software of the case monitoring system.

Full co-operation of all the participants of the Project is required for the timely success of the Project.

The progress of implementation of the CONFONET Project State-wise as reported by NIC is given at Annexure –VII.

 


Agenda Item No. 7

 

Alternative disputes resolution mechanism in the form of Lok Adalat for speedy disposal of consumer cases:-

 

          During the conference held on 17th August, 2005, the following suggestions for speedy disposal of consumer grievances were taken up for discussion:-

i)                   “Consumer Fora could be declared as a Lok Adalat by the Legal Services Authorities Act making the award equivalent to that of Lok Adalat and non-appealable. Even otherwise, it could hold sittings similar to Lok Adalats on pre-announced date.

 

ii)                The Presiding Officer and Members could persuade the parties during regular hearing to come to the just and mutual agreement and have the case decided on the date of Lok Adalat.

 

iii)              Senior Officers of the Department of Consumer Affairs of  the State could hold meetings with their counterparts in the  concerned Government Departments whose cases are pending in the Consumer Fora and request them to expedite settlement of these cases.

 

iv)              There should be regular interaction between  Presiding Officer, District Collectors and NGOs working in the District.

 

v)                Mass Consumer Movement can be built up by utilizing the services of NGOs, prominent public personalities etc.  Their cooperation could be solicited for settling consumer grievances.

 

The State Commissions/ District Fora should hold Lok Adalat on the  last working Friday or Saturday of every month and list about 20 cases for settlement on each sitting.  They may also associate with them  representatives from outside.”

 

          As per the Reports, as on date only 9 State Commissions and in District Forums in12 States are holding Lok Adalats. A statement showing the number of cases disposed of by holding Lok Adalats is annexed as Annexure - VIII.

 

          The State Commissions, which are not holding Lok Adalats, are requested to start holding of Lok Adalats.

 Further, it is reported that State Governments are not extending their helping hand in respect of payment of honorarium to the outside Members. State Governments are requested to provide necessary financial assistance to the State Commissions for payment of remuneration to outside Members.

 


Agenda Item No. 8

 

Constitution of a panel of Doctors at State level for getting assistance in medical matters pending before the Consumer Fora:-

 

          A Panel of Doctors and Medical Practitioners be constituted at State level for obtaining expert opinion in medical negligence cases by the State Commissions & District Fora. This will help them in quick disposal of medical negligence cases. They may be paid a reasonable honorarium for giving their expert opinion. In this way, the Consumer Fora can render equitable justice to the consumers.

 


Agenda Item No. 9

 

Power vested with the President, NCDRC and State Commission to withdraw judicial work from any President/ Member of State Commission/ District Forum:-

 

          A large number of complaints are being received in the office of the Hon’ble President of National Commission regarding the conduct of the Presidents and Members particularly at the District Fora level. Though, the National Commission is seeking report on these complaints from the Presidents of the State Commissions  the State Commissions are expressing their inability to take any cogent action against such Presidents and Members particularly in the absence of any express provision in the Act to vest the power for taking action against such  defaulting  Presidents and Members.

           For example, in the State of Bihar, the President, State Commission has issued an Order  withdrawing  judicial work from the Presidents of District Fora of Mujaffarpur & Purnia for remaining absent and disobedience of the directions issued by him. The State Government of Bihar instead of taking appropriate action has stayed the Order passed by the President of the State Commission and allowed them to continue to work.

          In view of the above position, it will not be possible to implement the provisions of Section 24B of the Consumer Protection Act, 1986.  Therefore, it seems that the immediate need of the hour is to pass a resolution in the Conference to vest the power with the Presidents of the NCDRC and State Commissions to withdraw judicial work from Presidents & Members of the State Commissions and District Fora, if their performance is not up to the mark and disobedience of the directions issued by them.

 


Agenda item No.10

 

Non-implementation of Orders of Consumer Fora

 

          The National Commission is also in receipt of complaints from the consumers that to execute the order passed by the Consumer Fora are taking more time than the time taken for the disposal of case before the Fora.  District Fora are also not taking steps under Sections 25 and 27 of the Consumer Protection Act, 1986 to execute the Order seriously.  This is causing harassment to the consumers.  The State Commissions & District Fora should take necessary and immediate steps for executing their Orders within the stipulated time with the help of Government Agencies.


Agenda Item No.11

 

Utilisation of fee for filing Complaint:-

 

          After the amendment in the Consumer Protection Act in 2002,  fee has been levied for filing  complaint before the District Fora/State Commission/National Commission.  In the case of State Commission/District Forum, the said fee so received is to be credited in the Consumer Welfare Fund of the respective States and where such Fund is not established it shall be credited in  the Receipt Account of the State Government; and in the case of National Commission to the Consumer Welfare Fund of the Central Government.

          The National Commission has sent a proposal to the Department of Consumer Affairs, Government of India to bring an amendment in the Consumer Protection Rules, 1987 regarding utilization of fee by the Consumer Fora, received for filing a complaint for meeting the miscellaneous expense i.e. postal stamps, computer cartridges, photostate paper, stationery items etc., which are required on daily basis because allocation of funds by the State Governments are not sufficient.  

 

 

 

 

Agenda Item No. 12

Uniform payment (Salary/perks) to Members of the State Commissions & District Fora :-

 

           State Governments are paying different  honorarium/salary /remuneration to the Presidents & Members of the State Commissions/District Fora  even though they are performing same nature of functions.  A uniform amount is to be fixed for the payment of honorarium/salary to the Presidents & Members of State Commissions and District For a throughout the country.

          A Statement showing the salary/honorarium/remuneration being paid to the Presidents & Members of the State Commission & District Fora is annexed as  Annexure- IX.

It is seen that except the Presidents of the State Commissions and the District Fora, there is no uniformity in the pay and perks payable to the Members of the State Commissions and the District Fora, which have caused resentment amongst such Members particularly, where the Members have been appointed on full time basis.  The Secretaries of the Department of Consumer Affairs of the State Governments/UTs may discuss the issue and consensus may be reached to bring uniformity in pay and perks of Members of the State Commissions and the  District Fora when the appointments are made on full time basis.  

 


Agenda Item No. 13

 

Implementation of the Consumer Protection Regulations, 2005

 

The National Commission with the approval of Central Government has  notified the Consumer Protection Regulations, 2005.

          The Regulations were forwarded to all the State Commissions for implementation by all the State Commissions and District  Fora.  But, it has been observed that even after the notification of Consumer Protection Regulations, the State Commissions and District Fora are not following the same.  It is the responsibility of the State Commissions / District Fora to strictly follow the Regulations framed by the National Commission.  The National Commission is in receipt of the various complaints from the consumers, particularly those, who are facing difficulties in obtaining  certified copy of an order in time.  The complaints are also regarding the procedure being adopted by several District Fora, which are in vogue in the civil courts and causing  delay in disposal of cases, issuance of certified copies etc.  Under Rule 15 (9) of the Consumer Protection Rules, 1987, the National Commission is issuing the certified copy of an order to the parties concerned free of cost. As such, the State Commissions & District Fora should supply certified copy of the Orders free of cost to the concerned parties, as per Regulation 21 of the Consumer Protection Regulations, 2005.

 
Agenda Item No. 14

 

Implementation of the provisions of Right to Information Act, 2005:-

 

          The Government of India has enacted the Right to Information Act, 2005 under which information is to be provided to public. 

          Since the consumer Fora all over the country are dealing with the consumer cases and as per the provisions of the Consumer Protection Act, 1986, the question regarding disposal of cases as provided in the statute, issuance of the certified copy and any other procedural information has to be provided to the consumer in general as per the Right to Information Act, 2005.  All the State Commissions are  impressed upon to direct the District Fora functioning under them to comply with  the provisions of the Right to Information Act, 2005 and necessary machinery such as designation of Public Information Officer (Section 5), Disposal of Request (Section 7), Grounds for rejection to access in certain cases (Section 9) be complied with.  The National Commission is also receiving the applications under Right to Information Act, 2005 from complainants – consumers; what are the reasons for dismissing the complaints/ appeal/ revision petition even though having the full knowledge of the case being listed for disposal before the Bench and even after receiving the copy of the order.  Though there is no expressed provision in the Right to Information Act, 2005 to reject such applications but when there is a provision to file an appeal/ revision petition against the impugned order of a Fora to the higher Forum then such kind of information is not required to be solicited from the Registry of the Consumer Fora on administrative side since the Fora/ Commissions and its Benches are quasi-judicial bodies beyond the scrutiny of the order passed judicially by any authority individually.

          The matter may be discussed further in the Conference.

 

 

* * *