Central Government Notifies Rules Governing Salary and Service Conditions for Consumer Commission Presidents and Members

The Ministry of Consumer Affairs, Food and Public Distribution, Department of Consumer Affairs, issued a significant notification on July 15, 2020, introducing the Consumer Protection (Salary, allowances and conditions of service of President and Members of the State Commission and District Commission) Model Rules, 2020. These rules, published as G.S.R. 451 (E) in the Gazette of India, were enacted by the Central Government in exercise of the powers conferred under the proviso to sub-section (1) of section 102 of the Consumer Protection Act, 2019 (35 of 2019). The new regulations came into force on July 20, 2020, and are designed to standardize the emoluments and service terms for the presiding officers and members of consumer redressal bodies across the country.

Under these rules, the President of a District Commission is entitled to the salary and allowances admissible to a District Judge in the super time scale of pay, while a Member receives pay equivalent to the minimum of the scale of a Deputy Secretary of the State Government, along with other admissible allowances. For the State Commissions, the President is to receive the salary and allowances of a sitting High Court Judge of the State, and a Member's pay is set at the minimum of the scale of an Additional Secretary of the State Government, with corresponding allowances. A crucial provision stipulates that if a person appointed as President or Member is in receipt of any pension, their pay shall be reduced by the gross amount of that pension. The rules also provide for an annual upward revision of pay at a rate of 3% for both Presidents and Members. Furthermore, no person can be appointed unless declared medically fit by an authority specified by the State Government. In the event of a casual vacancy for the President's office in either a State or District Commission, the State Government is empowered to appoint the senior-most Member to officiate. Entitlements for house rent allowance and transport allowance are set at the same rates as those admissible to Group 'A' Officers of the State Government of a corresponding status. Leave, Leave Travel Concession, medical treatment, and hospital facilities are to be provided as per the provisions applicable to Group A Government servants in the State Government. Before assuming office, the President or Member must declare their assets, liabilities, and financial and other interests. The rules also impose restrictions on post-retirement activities, prohibiting practice before the National, State, or District Commissions, and undertaking arbitration work while in office. A two-year embargo is placed on accepting employment with any party to a proceeding before the Commission after ceasing to hold office, with exceptions for employment under the Central or State Government, local authorities, or statutory bodies. All appointees are required to take an oath of office and secrecy in specified forms. The salary, remuneration, and other allowances are to be defrayed from the Consolidated Fund of the State Government, or from the Consolidated Fund of India for Union Territories.

The legislative intent behind these rules is to establish a clear, uniform, and robust framework for the service conditions of the adjudicating authorities within the consumer protection ecosystem, thereby strengthening the institutional integrity and operational efficiency of the State and District Consumer Commissions. Prior to these rules, while the Consumer Protection Act, 2019, laid down the overarching legal structure for consumer redressal, the specific details concerning the remuneration, perquisites, and post-service conduct of its key functionaries were left to be prescribed by rules. These rules address these statutory gaps by providing comprehensive guidelines, ensuring that the individuals holding these critical positions are adequately compensated and bound by ethical standards that prevent conflicts of interest and uphold the dignity of their office. The legislation provided: “The terms and conditions of the service of the President and the members of the District Commission and the State Commission shall not be varied to their disadvantage during their tenure of office.” This provision is central to ensuring the independence and impartiality of the members, safeguarding them from arbitrary changes to their service conditions during their term. By formalizing these aspects, the rules aim to attract qualified individuals to these roles and ensure their continued independence in decision-making, which is vital for effective consumer grievance redressal.

Keywords: Consumer Protection Act 2019, Consumer Commission, Service Conditions, Salary Allowances, District Commission, State Commission, Consumer Redressal, India, Central Government Notification

Geo Tags: India, New Delhi District: Not Applicable