Central Consumer Protection Authority Establishes Procedures for Investigation Wing Inquiries

The Central Government recently issued The Central Consumer Protection Authority (Submission of Inquiry or Investigation by the Investigation Wing) Regulations, 2021, a set of regulations designed to streamline and formalize the process by which the Central Consumer Protection Authority (CCPA) initiates and conducts inquiries and investigations. These regulations, notified on December 9, 2021, and published in the Official Gazette on December 14, 2021, came into force immediately upon their publication. They were framed in exercise of the powers conferred by sub-section (5) of section 15 and read with clause (c) of sub-section (2) of section 104 of the Consumer Protection Act, 2019 (35 of 2019). The regulations define key terms such as 'Act', 'Central Authority', 'Investigation Wing', and 'Secretary', ensuring clarity in their application.

Under the new framework, the Secretary of the Central Authority, upon receiving any information, complaint, or direction from the Central Government, is mandated to present it before the Central Authority to determine if a prima facie case (a case that appears to be true at first sight) exists. The Central Authority is expected to record its opinion on this matter within fifteen days, as far as possible. Should the Central Authority deem it necessary, it may conduct a preliminary inquiry, which does not require adherence to formal rules of procedure, and can involve calling for information or inviting relevant persons. If the Central Authority concludes that a prima facie case exists, the Secretary is then required to convey the Central Authority's directions to the Director General (the head of the Investigation Wing) within seven days to initiate an investigation. This direction is considered the formal commencement of an investigation under sub-section (1) of section 19 of the Consumer Protection Act, 2019. Conversely, if no prima facie case is found, the Secretary must promptly send a copy of the closure order to the Central Government or the complainant. The legislation provided: “Where the Central Authority is of the opinion that a prima facie case exists, the Secretary shall convey the directions of the Central Authority within seven days of the receipt of the order of the Central Authority to the Director General to investigate the matter.”

The regulations further detail the investigative process to be undertaken by the Director General. The Secretary is to furnish the Director General with all relevant documents, including the initial information or complaint, and the preliminary inquiry report. The Central Authority will specify a timeframe for the Director General to submit an investigation report, which ordinarily should not exceed thirty days, though extensions may be granted for sufficient reasons. The Director General's report must comprehensively detail findings on each allegation, supported by evidence, documents, and analysis collected during the investigation. A significant provision allows the Director General to submit the report in two parts for confidentiality purposes: one accessible to the Central Government or complainant, and another containing confidential or commercially sensitive information with restricted access. Upon reviewing the report, the Central Authority retains the power to direct further investigation and request a supplementary report on specific issues within forty-five days. These regulations aim to provide a robust and transparent procedural mechanism for the Central Consumer Protection Authority to effectively exercise its powers under the Consumer Protection Act, 2019, thereby strengthening consumer protection in India by ensuring timely and structured handling of complaints and investigations.

Keywords: Central Consumer Protection Authority, CCPA, Consumer Protection Act 2019, Investigation Wing, Regulations, Prima Facie Case, Director General, Consumer Complaints, Inquiry Procedure, India Geo Tags: India, Delhi District: Not Applicable