Central Government Amends Consumer Dispute Redressal Commission Fee Structure

The Ministry of Consumer Affairs, Food and Public Distribution, Department of Consumer Affairs, issued a significant notification on August 17, 2023, introducing the Consumer Protection (Consumer Disputes Redressal Commissions) (Amendment) Rules, 2023. This delegated legislation, published as G.S.R. 606(E) in the Gazette of India, came into force immediately upon its publication. The amendment was enacted by the Central Government in exercise of the powers conferred by sub-section (1) and clauses (q) and (zj) of sub-section (2) of section 101 of the Consumer Protection Act, 2019 (35 of 2019). The primary effect of these new rules is a revision of the fee structure applicable to consumer complaints filed before the Consumer Disputes Redressal Commissions.

The core change introduced by the 2023 Amendment Rules involves the substitution of the existing Table in rule 7, sub-rule (2) of the Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020. This Table specifies the amount of fee payable by a complainant based on the value of goods or services paid as consideration. Under the revised structure, complaints concerning goods or services valued up to Rupees Five Lakh will incur no fee. For values above Rupees Five Lakh and up to Rupees Ten Lakh, a fee of Rupees 200 is prescribed. The fee progressively increases with the value of the claim: Rupees 400 for claims above Rupees Ten Lakh and up to Rupees Twenty Lakh; Rupees 1000 for claims above Rupees Twenty Lakh and up to Rupees Fifty Lakh; Rupees 2000 for claims above Rupees Fifty Lakh and up to Rupees One Crore; Rupees 2500 for claims above Rupees One Crore and up to Rupees Two Crore; Rupees 3000 for claims above Rupees Two Crore and up to Rupees Four Crore; Rupees 4000 for claims above Rupees Four Crore and up to Rupees Six Crore; Rupees 5000 for claims above Rupees Six Crore and up to Rupees Eight Crore; Rupees 6000 for claims above Rupees Eight Crore and up to Rupees Ten Crore; and Rupees 7500 for claims above Rupees Ten Crore. The legislation provided: “In the Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020, in rule 7, in sub-rule (2), for the Table, the following Table shall be substituted, namely:-”

The legislative intent behind these amendments is to update and rationalize the fee schedule for consumer complaints, ensuring that the costs associated with seeking redressal are proportionate to the value of the dispute. This revision addresses the earlier legal position established by the 2020 Rules, where the fee structure might have been deemed outdated or requiring adjustment to better reflect contemporary economic values and administrative costs. By substituting the entire Table, the government aims to streamline the process of fee collection and standardize the financial obligations for consumers across various claim values. The amendment seeks to ensure that access to justice through Consumer Disputes Redressal Commissions remains equitable while also supporting the operational efficiency of these bodies. This adjustment is a direct amendment to the existing framework, modifying the financial aspects of consumer dispute resolution without introducing entirely new rights or obligations, but rather recalibrating an existing enforcement mechanism.

Keywords: Consumer Protection, Consumer Disputes Redressal, Amendment Rules, Fee Structure, Consumer Act 2019, Ministry of Consumer Affairs, India Geo Tags: India District: Not Applicable