48

CONSUMER MOVEMENT IN

POST LIBERALISATION ERA

India, being a developing country, has to face a lot of

challenges in order to provide a good quality of life for her citizens. In case

of consumers, especially when the country is in transition from an

agricultural economy to an industrial economy, the adoption of

liberalisation policy looking forward to globalisation may certainly raise a

doubt about the position of consumer in the market place. In order to

study the first objective of the research i.e. to identify the milestones in

consumer movement during the post liberalisation period, the researcher

has initially observed the various changes taking place in the market

scenario in the said period. The noteworthy changes are as follows –

Market Scenario After 1991

Changes noticed in the market and Consumer Movement after1991

i.e. after the liberalization are discussed below -

i) Wide choice

Most of the consumers are of the opinion that after

liberalization, market became more competitive. Due to liberalization

many suppliers entered into the market and even imported goods are

easily available to the Indian consumers. Such a situation has provided a

wide choice to consumers. Continuous entry of new competitors

willing to make enormous investment for long term market share

resulted in fast falling margins and cutting in to profitability of

many marketers. Under these circumstances “Survival of the

fittest” became the motto. This resulted in marketers using wrong

49

means to increase their market share rather than face the

situation of being wiped out from the market.

ii) Development in Retail Industry

The liberalisation has changed the scenario of one of the

most important industries “Retail Industry”. London headquarter

Benoy, UK is going to design and construct the nearly two million

square feet shopping mall in the country’s financial and

entertainment capital for knitting, the retail development area of

Pantaloon. The mall, which makes the foray of a British retail

design firms for the first time in India, will house 350 shops,

multiplex cinemas, a specious car park and an artificial lake1.

The announcement from Benoy comes days after the Indian Govt.

said; it would allow single brand retailers like Reebok & Adidas to control

51% of their operations in India. Earlier foreign retail brand could sell

products in India only through franchise agreements with a local partner.

According to a survey conducted jointly by Retail Industry

Consultancy major KSA Techno Park & ICICI Property services, at

least 93 malls are set to start operations in top 14 cities in the

next two years up from over 50 malls now. By 2010, 300 malls

are likely to be operational in the country.

On same line the world’s largest retailer has filed an

application with Reserve Bank of India to set up an office for

market research and business development pertaining to its

retailing plans in the country. The $ 268 bn. Wal-Mart stores have

taken its first step towards retail entry into India.

Similarly Reliance recently announced the details of it’s

massive foray to set up malls, super markets & hypermarkets in

the country.

1 Indo Asian new service, ‘Free Press Journal’, Jan. 28, 2006, pg. 11.

50

There is a sea change in the distribution system as many malls, no. of

departmental stores are coming up at very fast pace in North

Suburb of Mumbai. The unique feature of mall, expressed by

respondents is, variety of products and number of brands of a

product are available to consumer at one place only. Consumers are

getting information about available brands and varieties of product

at one place, which increases their awareness. This enables them to

compare the brands and products with each other and select or

choose the most suitable product as per their need. Respondent

consumers opined that now they can exercise the right to choose in

a more effective manner.

All these developments are in the interest of consumer;

however it is but natural that a consumer, given a wide choice

has to make an intelligent choice to make his rupee stretch. As

such he is to be educated properly.

iii) Nature of goods

Rapid development in science & technology changed the

nature of many goods from simple and search goods to

complicated and experienced goods. The presence of the

experienced goods in the market place may increase the

asymmetric information about the attributes of the products

between the consumer and the producer. Moreover removal of

personal relationship of buyer and seller as a result of mass

marketing methods created the situation more complex for the

consumer

iv) Promotional Schemes

As supply increase in the market, to that extent,

promotional techniques have also got raised. To create more demand

for it or to increase purchasing power of people, companies,

suppliers are offering loan facility, 0 % finance package and different

promotional schemes. The new concept of customer delight, by

51

giving additional unexpected benefit to consumer, has been introduced

in the market. The customer relationship-management is becoming more

prominent in the market.

v) Spendthrift Consumer

For an individual there exist three avenues for utilisation of

his derived income. Firstly he saves some part of the income,

secondly he keeps aside some portion of his income to fulfill tax

liability (if any) and finally the balance amount left is spent. As a

result of economic reforms, interest rates on small savings have

come down and saving linked tax concessions stand withdrawn,

tax rates got reduced and tax exemption limit increased. In effect

the saving incentives no more remained attractive. In these

circumstances the amount of disposable income left with an

individual that supposed to be spent on products & services

increased. Therefore the individual consumer became spendthrift.

vi) Information Explosion

Liberalised economy brought about an information explosion

through different media such as increased no. of Pvt. TV

channels, availability of different types of magazines, periodicals,

internet etc. There exist a high level of sophistication in

marketing & selling practices in advertising and other forms. As a

result, global life styles came before common Indian individual

which he started imitating by spending his income lavishly.

vii) Service Sector

Due to liberalization and privatization tremendous

development has taken place in the service sector, particularly

banking, insurance, transport, electricity, etc. Retail banking is offering

numerous products to customers. Many insurance schemes, policies, with

52

all promotional techniques, are offered by insurance companies.

Many investment avenues are also available in the market today.

Viii) Advanced Technology

Number of products is available with advance technology.

Respondents expressed that upgraded models are continuously entering

the market. The continuous up gradation is an outcome of tremendous

developments in science and technology all over the world, particularly,

noticed after 1991. Now we are witnessing, therefore, the attempts to push

their upgraded versions in to the market place by the manufacturers

through hammering of the advertisements on consumers. The quality of

the product, to a greater extent, depends upon technology used in

that product. Advancement of technology resulted into the

improvement of quality of products and services. As such the overall

change in the market scenario is witnessed since 1991. In order to

survive in such a highly competitive market, many companies are

found adopting malpractices, unfair trade practices. As such, need

arises to make consumer more aware about changing market

conditions, as well as, malpractices.

ix) Regulatory Authority

Many unfair trade practices, particularly in service

sector, have compelled aggrieved consumer to unite and raise a

voice. Consumer associations also made representation to the

Government about unfair trade practices on behalf of consumers.

Government also has taken a cognizance of consumer out- cry. As a

result, many regulatory authorities have been established i.e. Telecom

Regulatory Authority of India (TRAI), Securities Exchange Board of India

(SEBI). These regulatory authorities are playing the effective role, as watch

dogs, in telecom and capital markets respectively.

53

x) Consumer Protection Act (C.P.Act) 1986

Consumer Protection Act was enacted in 1986. However, due

to liberalization policy and changed market situation, necessary

amendments have been made from time to time as per the

requirements of consumers. Act has been amended in 1993 as well as

2001. As per the Act a redressal system was designed and

consumer dispute Redressal Forums are established. The Consumer

Dispute Redressal Forum, Mumbai suburban District, which earlier

situated at Dadar has been relocated at Bandra in 1991. As such, the

North Mumbai consumers have benefited a lot.

xi) Consumer Associations

Members of Consumer Associations expressed that,

consumer associations have systematized their efforts, organization

structure and overall working. Associations have become more active.

Associations are planning their activities for different zones and

creating awareness about consumer movement in different segments

of the society. Association particularly, Mumbai Grahak Panchayat

and Consumer Guidance Society of India have established consumer

clubs in schools and have compelled Government indirectly to include

topics on consumerism in the syllabi of school, as well as, college

education system. This will certainly accelerate the Consumer Movement.

xii) Mass Communication

The consumer respondents state that awareness about

Consumerism is being created through various Medias. Many informative

and educational advertisements are being displayed and broadcast

through Television and Radio.

54

xiii) Government Role

As per the respondents opinion efforts are being put in, by

the Government through, Consumer Affairs Department to protect

and promote consumer interests. State Government has appointed

many activists as ‘Bahishal Vyakhyata’ to create awareness among

consumers about the consumer movement. Government has also

supplied published material for this purpose.

As such, the response clearly states that many positive

changes took place in the market and comparatively the overall

consumer movement has strengthened after 1991 . Prior to 1991,

competition was restricted, few sellers and low purchasing power has

led to sellers market. After 1991, the factors like liberalization,

privatization, globalization, increased competition, wide choice, changed

distribution system, promotional schemes, development in service sector,

technology, mass communication, establishment of regulatory authority,

Consumer Redressal Forum, enactment of Consumer Protection Act and

efforts put in by Govt. and consumer associations led to the development

of Consumerism.

One consumer went on to say that existence of Consumer

Movement is realized only after 1991 due to the establishment of

Redressal agencies and market environment.

Consumer Protection

In the post liberalisation era, the presence of still ignorant,

unorganised and unaware consumers, in the market place, stress

the importance of consumer protection by the state intervention.

In the backdrop of this market scenario, an attempt is made

to take a brief review of important events of consumer movement

that took place because of the efforts of the Government and

consumer associations, in post liberalisation era in India and

55

particularly in North Mumbai and thereby to assess the extent to

which a) Consumers awareness in created & b) Consumers

problems are resolved within the framework of provision of

consumer protection Act.

Creation of organisational set-up

The Consumer Protection Act (CPA) was enacted in 1986 by

the Central Govt. The implementation of the said Act was initiated

in July 1987 through State Govts. For effective implementation of

the said Act, it was essential to create awareness among people

of this Act. As such, it was decided in the year 1990 by the state

Govt. of Maharashtra to have a department and separate

organisational set-up at state level for consumer protection.

The Agricultural & Food Supplies department of State Govt.

was renamed as Food & Civil Supplies department in the year

1965. It was again renamed as Food, Civil Supplies & Consumer

Protection Department in the year 1991. The Organisational set

up of this department for

a) Implementation of Consumer Protection Act and

b) Implementation of other Acts is furnished on next page.

Organisational Setup Year 2005

Consumers Protection Act (CPA)

Food, Civil Supplies & Consumer Protection Department

Principal Secretary State Commission

Executive Secretary District fora

Under Secretary

Desk Officers (3)

(Source – Records of Dept of Food, Civil Supplies & Consumer Protection, Maharashtra state)

56

Observations

i) By structuring organisational set-up and delegating

responsibility of protection of consumers to respective

states, accountability has been established.

ii) As a result of this decentralised organisational setup

effective follow up of consumer protection policies and

programs has become possible which in turn will

accelerate consumer movement at a faster pace.

iii) The Food Civil Supplies and Consumer Protection

Department is concentrating on consumer protection

through it’s major activities viz :

a) Making the consumer aware of CP Act 1986 through

various programmes.

b) Establishment of Redressal System.

Consumer Awareness Programmes

After enactment of CP Act 1986 efforts were made at

different levels to create awareness among consumers about this

Act & redressal system. The Govt. agencies & consumer

associations have tried their level best to frame and execute

awareness programmes at national and state levels. It is observed

that government has adopted following means and methods for

creating awareness among the consumers.

ROLE OF GOVERNMENT IN CONSUMER AWARENESS

CAMPAIGN

A) Booklets

Informative booklets giving information about consumer

protection Act (C P Act) and consumer rights in a simple manner,

57

in English as well as in Marathi, were prepared and distributed to

consumers in different functions free of cost.

(B) FILMS

A documentary film was made on important features of CP

Act 1986 and consumer rights and responsibilities. Number of

public shows were arranged in order to create awareness among

public.

(C) SEMINARS AND WORKSHOPS

No of seminars, workshops, conferences and conventions

were organized at district, state and national level to train the

office bearers of consumer associations, consumer activists,

professionals and government employees for spreading awareness

among different segments of the society about provision of CP Act

and redressal system.

(D) TRAINING PROGRAMMES

Training programmes were arranged to train the government

officers and employees for awareness campaign.

(E) BAHISHAL VYAKHYATI

No. of teachers, lecturers and professionals interested in

consumer movement and consumer activists were appointed as

“Bahishal vyakhati”. They were asked to deliver lectures, talks at

different places on the topic CP Act, consumer rights and

responsibilities. Booklets and printed material on the said topic

were given to these selected people for distribution in the society.

(F) PROTECTION COUNCIL

The protection councils established by the state

government were also providing assistance to government in

such awareness campaign.

58

(G) SCHOOL AND COLLEGE STUDENTS

In 1994, The Maharashtra Education Board has introduced

the topic of consumer movement, rights and responsibilities of

consumers in higher secondary school curriculum i.e. at 9th std.

Similarly many universities have revised the syllabus to include

paper / topics like consumer movement and CP Act at first year of

degree course.

ROLE OF CONSUMER ASSOCIATIONS IN CONSUMER

AWARENESS CAMPAIGN.

The government has held meetings of office bearers of

different consumer associations in order to motivate them for

organising various consumer awareness programmes. Most of the

consumer associations played active role in creating awareness of

C.P. Act 1986 and redressal system by -

(A) LECTURES :- Arranging lectures on various topics of

consumer movement in schools and colleges at respective

areas for the benefit of staff members and students.

(b) TALKS :- Talks in public meetings, cultural functions,

co-operative housing societies and wherever possible are

arranged to explain and discuss the consumer rights and

responsibilities and their execution.

(c) TIEUP WITH CORPORATE SECTORS :- Developed tie-

ups with public relation department and welfare department

of various corporate sectors to create awareness of the CP

Act, rights and responsibilities among workers, employees or

even consumers and thereby making them familiar with all

these issues.

59

(d) MAGAZINES :- Published monthly and quarterly

magazines to spread the message of consumer movement on

mass scale. In Mumbai following magazines have been

published by active consumer associations regularly.

Table No.3 : Magazines Published By Consumer

Associations In Mumbai

Year : 2005

Name of Associations

Name of the

Magazines

Period

Consumer Guidance

Society of India (CGSI) “Keemat” Monthly

Mumbai Grahak

Panchayat

(MGP)

“ Grahak Hitay” Monthly

Association for Consumer

Action on Safety and

Health (ACASH)

“Acash”

Quarterly

(Source: Registered Offices of Consumer Associations)

(e) GRAHAK PRABODHAN :- It is observed that grahak

prabodhan programmes arranged by MGP in marathi

through kirtan, songs and street plays evoked

tremendous response from consumers. Various issues of

consumer movement were elaborated through these

modes among different segments of society.

(f) PUPPET SHOWS :- It is noteworthy that MGP has trained

the selected consumer activists in preparation of puppets

60

at home and these trained activists are arranging puppet

shows at different places to create awareness among

society for consumer rights and responsibilities. Such

puppet shows provoked an overwhelming response.

(g) BOOKLETS :- No. of booklets issued by various

associations in which different aspects of consumer

protection act and consumer movement are explained

and discussed.

(h) TALKS ON TV AND RADIO :- No. of talk shows,

discussions on different facets of Consumer Protection

Act and consumer movement are arranged on regular

basis on different TV channels and radio to appeal to

mass people.

(i) NEWSPAPERS :- Articles and columns are written

regularly in various newspapers including leading

newspapers like Times of India, Loksatta, Maharashtra

Times etc. on topics Consumer Protection Act, consumer

rights and responsibilities.

(j) PUBLICATION OF JUDGEMENTS :- Important judgements

of redressal agencies were published in newspapers,

magazines and books for the information of common

individuals. This information introduced them to

Redressal Fora and their functioning. 2

The effect of awareness campaign in north Mumbai is

assessed through the questionnaire and the data collected is

furnished in the table no. 3.1.

2 Mumbai Grahak Panchayat and Consumer Guidance Society of India, Annual Reports 1996-2006

61

Table No.3.1: AWARENESS OF NORTH

MUMBAI CONSUMERS

Year : 2005

Awareness

No. of Consumer Responses

Consumer

Rights

Consumer

Responsibilities C. P. Act

Aware 408

(43)

323

(34)

560

(59)

Not-Aware 542

(57)

627

(66)

390

(41)

Total 950

(100)

950

(100)

950

(100)

(Source: Field Survey Conducted in 2005)

It is observed that the awareness level of

consumers in North Mumbai pertaining to enactment of CP

Act is highest at 59% as compare to awareness of consumer

rights, consumer responsibilities and redressal agencies on

lower side at 43%, 34% and 30% respectively. This data

implies that respondents of north Mumbai are well aware of

enactment of consumer protection act but not well aware of

consumer responsibilities and redressal agencies.

(Note : The Details on awareness of consumers are given in Chapter

No.VIII).

Through their on going awareness campaign, government and

consumer associations are therefore expected to emphasise on

consumer responsibilities and redressal agencies. If consumers

become aware of their responsibilities, also along with their

rights, then they would be in a position to play their role as a

62

consumer in market place more effectively. This will bring down

their exploitation and will empower them to protect their interest

on their own.

Now let us turn to the second activity of Food, Civil

Supplies and Consumer Protection Department which has been

considered important development in consumer movement i.e.

establishment of redressal forums/agencies.

REDRESSAL AGENCIES

Earlier, except for Monopolies and Restrictive Trade Practice

(MRTP) Act (now repealed), all the other acts were mainly

punitive and preventive in nature3. The consumer couldn’t seek

remedy or redressal against offending traders or manufacturers

and negligent, careless service providers. However the MRTP

commission enabled the consumer to approach it with their

complaints. In spite of all these acts the consumer didn’t have

any effective mechanism or institutional arrangements for the

speedy redressal of their grievances.

On this background, the establishment of redressal agencies

viz. commissions and district forums is considered the most

important landmark in consumer movement. The redressal system

is basically established to provide simple, speedy and inexpensive

redressal for consumer’s grievances. The redressal agencies are

also empowered to give relief of a specific nature and award

compensation (whenever found appropriate) to consumers.

The Food, Civil Supplies and Consumer Protection

Department has set up the state commission and district fora as

per the section 9 of the Consumer Protection Act (C.P.Act)1986.

3 Bare Act: Dept. of Food Civil Supplies and Consumer Protection, Govt. of Maharashtra, Mumbai.

63

(The detail explanation on set-up of State Commission and

District fora will follow in chapter VI) The information gathered,

during an interview with Shri A.Ramkrishnan, Principal Secretary

to Food, Civil Supplies and Consumer Protection Department.

Maharashtra Govt. reveals that until 2005 a State Commission and

about 34 District Fora are set-up. The state commission and three

District Fora are functioning actively in the Mumbai for the

redressal of consumer grievances.

Infrastructural Facilities to Redressal Agencies

During 95-97, GOI released one time grant of Rs. 3.60 crore

to construct office buildings in respective collectorate campus for

the state commissions & 14 District fora, out of 34 district fora.

The construction works were completed during 1998-99.

As a result of the release of fund by GOI in favour of

redressal agencies through Maharashtra Govt. separate entity,

existence was created to these redressal agencies. Independent

infrastructure and identity gave necessary projection to these

agencies, as a result of which they came in the sight of

consumers, which in turn waked - up the consumers from their

slumber and gave thought in their mind about the redressal to the

problems they faced as a consumer. This facilitated systematic

set-up and the efficient functioning of the redressal agencies,

which will positively contribute to consumer movement in coming

days.

The Government’s budgetary provisions & actual

expenditure on consumer protection for last five years is

furnished in the table No. 3.2.

64

Table No.3.2 : Budgetary Provisions & Actual Expenditure

for Redressal Agencies

(Rs. in Lac)

Year

Pay & Allowance Traveling Allowance Contingent Expenses

Budgetary

Provisions

Actual

Expend.

Budgetary

Provisions

Actual

Expend.

Budgetary

Provisions

Actual

Expend.

2000-01 386.28 380.46 32.81 29.55 45.88 43.33

2001-02 353.55 342.95 35.78 34.62 73.14 67.81

2002-03 348.99 349.15 23.61 26.95 35.27 38.08

2003-04 387.58 399.74 33.20 34.82 36.97 36.97

2004-05 472.69 436.71 25.51 39.85 66.38 66.29

(Source – Records of Dept. of Food Civil Supplies & Consumer Protection, Maharasthra State)

Observation

A close look on the above table reveals that the Govt

budget for redressal agencies has focussed only on meeting

establishment and office contingent expenditure. No Scheme for

the purpose of creation and strengthening of infrastructures of

adjudication mechanism for consumer protection seems to be

included.

PERFORMANCE OF DISTRICT FORA

The position of Redressal Agencies like District Forum and

Commissions in the year 2005 that indicates the total number of cases

filed and disposed off are as shown in Table No. 3.3 -

65

Table No.3.3 : Performance of Redressal Agencies Year-2005

Redressal Agency Complaints

filed

Complaints

disposed off Percentage

National Commission 35,535 27,729 78.03

State Commissions 3, 55,012 2, 37,808 66.99

District Forums 19, 44,768 17, 09,603 87.91

Total 23, 35, 315 19, 75, 140 84.57

(Source – Register of Dept. of Food, Civil Supplies & Consumer Protection, Maharashtra State, Mumbai, 2005)

Performance of Redressal Authority

0

500000

1000000

1500000

2000000

2500000

National Commission State Commission District Forum

Redressal Authority

No

. of ca

ses

Cases Filed

Cases Disposed off

The above table shows that number of consumers, who are

dissatisfied, approaching District Forum is comparatively more than

State Commission and National Commission. It states that the interest

of consumers who are purchasing goods or services up to Rs. 5

66

lakhs or maximum Rs. 20 lakhs is not protected in present market. It

clearly indicates that the amendment regarding enhancement of monetary

jurisdiction of District Forum is certainly in the interest of consumers and

facilitated them to sort out their problems. It states that slowly but surely

consumerism is reaching to grass root consumers.

After considering overall position of Redressal Agencies, let us consider the

position of Redressal Agency in Maharashtra i.e. State Commission and

District Forums in Maharashtra.

As on 31st March 2005, about 120727 cases were pending in

the State commission & District fora in the state. The details

thereof are as under.

Table No.3.4 : Cases pending with consumer forums in

Maharashtra Year: 2005

Consumer Fora

Total No. of Cases Filed

Total No. of Cases Disposed

off

No.of Cases

Pending

%

of Pending

Maharashtra

State

Commission

30,618 17,374 13,244 43

District Fora

in

Maharashtra

3,41,499 2,34,016 107483 31

(Source – Report of Dept. of Food, Civil Supplies & Consumer Protection, Maharashtra State, Mumbai, 2005)

Pendancy of Cases ranged between 31% & 43%. Pending

cases are pertaining to the period as old as 1992 in the case of

the state commission & 1994 in the case of District fora.

67

Table No. 3.5 :

STATE CONSUMER DISPUTE REDRESSAL COMMISSION,

MAHARASHTRA, YEARWISE BREAK - UP OF CASES FILED,

DISPOSED OFF & PENDING

(1996-2005)

Year

No. of Cases Filed

No. of Cases Disposed of

No. of Cases Pending

C A C A C A

1996 176 704 687 1604 - -

1997 388 1770 240 721 148 1049

1998 497 2835 128 1323 369 1512

1999 603 2498 197 972 406 1526

2000 549 2250 161 1911 388 1239

2001 489 1998 136 917 353 1081

2002 456 1876 266 1374 190 502

2003 255 2165 330 1195 - 970

2004 154 2609 425 1253 - 1356

2005 150 2730 158 1225 - 1483

Total 3717 21435 2728 12494 1854 10718

(Source: Register of State Commission, Mumbai)

i) It is observed from the above table that during a period of 10 years

(1996-2005), 25152 cases filed with state commission of which no. of

complaints and appeals filed are 3717 and 21435. No. of cases filed with

state commission after 1999 have declined. Moreover No. of complaints

filed after 2002 with the state commission have decreased drastically.

However no. of appeals filed after 2002 increased. It shows that the

68

increased in pecuniary limit of Redressal Agencies as per the provision

(section 11, 17 & 21) of C.P. Act 1986 helped to reduce the no. of

complaints filed with state commission.

ii) No. of complaints disposed of after 2001 has increased which resulted in

reduction of the year wise no. of complaints pending with state

commission. However no. of appeals pending with state commission is

increased consistently after 2002.

iii) As such, though pendancy of complaints reduced, the pendancy of

appeals increased after 2002 resulted in total pendancy of 12572 cases

during 10 yrs (1996-2005) with state commission. The state commission

President had stated that to dispose of pending cases (12572); it would

take almost another 10 yrs! This defeats the very objective of the C.P. Act

1986.

iv) It is pertinent to note that after 2003, though the year wise complaints

pending with the state commission is nil, the position of total pendancy of

cases is quite alarming because of the accumulated effect of pending

cases.

It is recommended that along with consumer forum Lok-Adalats are

to be established at different places to reduce pendancy of cases and to

resolve the consumer grievances speedily. As pendancy is due to

inadequate staff, the Govt. should provide adequate infrastructure

including man power to the redressal agencies.

Table No. 3.6 : Cases pending with Mumbai Suburban

District Forums (Year : 2005)

Total No. of Cases Filed

Total No. of Cases

Disposed off

Total No. of Cases Pending

% of Pending

9360 7084 2276 24

(Source - Register of Mumbai Suburban District forum, Bandra)

69

2] Details of Cases registered with the Consumer Forum, Bandra

(1996-2001) are given in following table :

Table No. 3.7 : Cases Registered with the Forum

(1996-2005)

Years

No. of cases

registered

Percentage

Index No.

RIN

%

Change

1996 621 8.79 100 -

1997 596 8.44 95.97 - 4.03

1998 1002 14.19 161.35 + 61.35

1999 1323 18.73 213.04 +113.04

2000 816 11.56 131.40 +31.40

2001 762 10.79 122.71 +22.71

2002 441 6.25 71.10 - 28.90

2003 411 5.82 66.18 - 33.82

2004 508 7.19 81.80 - 18.20

2005 582 8.24 93.71 - 6.29

Total 7062 100 1137.26 113.7

(Source: Case Filing Register of Mumbai Suburban District Forum, Bandra.)

70

No. of Cases Registered with Mumbai Suburban District Forum, Bandra (1996-2005)

0

200

400

600

800

1000

1200

1400

1 2 3 4 5 6 7 8 9 10

YEAR : 1=1996, 2=1997, 3=1998, 4=1999, 5=2000,6=2001, 7=2002, 8=2003, 9=2004,10=2005.

NO

. OF

CA

SE

S R

EG

IST

ER

ED

No. of CasesRegisteredSeries2

Considering the index No. 100 for the cases registered in the year

1996 as a base year the Relative Index No. (RIN) determined for the cases

registered with Forum in the year 1997 was 95.97, taking a down slide at

the rate 4.03% as compared to the base year. In contrast, the cases

registered in the years 1998 and 1999 have shown an upward trend taking

the RINs to 161.35 & 213.04 respectively giving corresponding growth

rates of 61.35% and whooping 113.04% over the base year. However

since 2000, RIN has taken a down swing to 131.4, 122.71, 71.10 & 66.18

for the years 2000, 2001, 2002 & 2003 respectively. Rate of down fall

registered in these years (2000-2003) is found at 31.4%, 22.71%, 28.90%

& 33.82% respectively. However, from 2004 it has again shown an upward

trend, RIN determined in the year2004 & 2005 is 81.80 & 93.71

respectively. When an Average Mean Index (AMI) is calculated for a period

1996-2005 utilising the formula

AMI= 1/n x sigma (1996-2005) i

71

We have arrived at the mean value 113.70 which means that the

average growth rate registered over this period is (+) 13.70%. This clearly

implies that consumerism is on upswing over the period (1996- 2005).

It is clear from the table, that the total number of cases

registered with the forum have recorded increase during the years

1998 and 1999. In fact it is seen an unprecedented spurt in the no. of

cases registered in the year 1999 when an index is at the highest

(113.04 %). Cause for spurt is about 400 cases which were registered

against few builders and constructors, and about 200 cases were

registered against financial companies during 1999.

The tempo has, however, found failed to sustain thereafter. The

cases registered in the years 2000 -2003 show a falling trend .

While figures may suggest a down swing in the phenomenon of

consumerism (taken here as expression of consumer problems,

dissatisfaction and asserting rights to redress), the reality however,

is quite different.

It is observed that anomaly was on account of the reasons stated

below –

a) Since 1999, there has been a strict screening of cases at the

consumer forum before they are registered.

b) The organizations, manufacturing EHAs, have faced the pinch

of compensations awarded to the consumers. Therefore, these

manufacturers have now properly geared up their internal

grievance redressal system, making it more responsive and

effective.

c) Cases are also found deflecting towards alternative grievance

redressal agencies.

d) However the no. of cases registered during last two years i.e. 2004

& 2005 is again showing an upward trend.

From the observations made, it is clear that consumers have

increasingly taken to voicing their dissatisfaction and even have

72

started seeking redress, may be, through alternative redressal

agencies. Given these facts, it is quite clear that Consumerism is

definitely on an upswing.

Table No. 3.8 : POSITION OF CASES WITH MUMBAI SUBURBAN

DISTRICT FORUM, BANDRA

(1996 – 2005)

(Source: Case Register of District Forum, Bandra.)

The close examination of the above table reveals that the no. of

cases filed with the District Forum increased during the period 1997-1999

whereas there is fall in the cases registered from 2000-2003; there is again

an upward trend in the registration of cases for the period 2004-2005. This

trend clearly indicates the seesaw pattern observed in the registration of

cases.

YEAR NO OF CASES

FILED

NO OF CASES

DISPOSED OFF

PENDING

1996 621 609 12

1997 596 576 20

1998 1002 897 105

1999 1323 964 359

2000 816 616 200

2001 762 545 217

2002 441 219 222

2003 411 172 239

2004 508 176 332

2005 582 115 467

TOTAL 7062 4889 2173

73

So far as pendancy of the cases is concerned, it has also been found

to have observed the similar seesaw pattern. The overall review of the

pendancy of the cases registered with various District Forums reveals that

the average pendancy is to the extent of 13% whereas the average

pendancy in Mumbai Suburban District Forum, Bandra is at 24%, and

particularly during last decade i.e. 1996-2005 is at 31%, a much higher

than the average pendancy.

Discussions held with the administrative staff of the Bandra Forum

brought out mainly the inadequacy of staff and the vacant position of the

President of the forum very often for certain periods as the factors

contributing to the pendancy of cases.

Though as per the C. P. Act 1986 provision, requires the consumer

courts to disposed of the consumer complaints within the prescribed period

of three months, however the pendancy of the cases (2173 nos.) over a

decade i.e. from1996-2005 at about 31% not only violate the provision of

the Act but indicates the unwarranted lingering of the complaints for a very

long period. As far as overall performance of these redressal agencies

are concern, the above Table no.3.3 indicates that State Commission

has disposed of 66.99 per cent cases filed with it, the National

Commission has disposed off 78.03 per cent of the cases filed with

them and District Forums have cleared 87.91 per cent of cases filed

with them which is again comparatively higher. It shows that all

redressal agencies are trying their level best to protect consumer

interest by clearing the cases as quickly as possible. However, there

is a scope to improve the performance of State Commission with

reference to dispose off the cases.

From the table no. 3.6 it can be observed that no. of cases

filed with Mumbai Suburban District forum are 9,360 which

constitute to 2.74% of total cases 3,41,499 filed with all district

fora in the Maharashtra State (Ref: Column 2 in the earlier Table No.3.4).

Similarly no. of cases disposed off by all District fora is 2,34,016

(Ref : Column 3 in the above Table No. 3.4). However, the

74

no. of cases pending with Mumbai Suburban District Fora (MSDF)

are 2276 which constitute 2.12% of total cases 107483 pending

with all District Fora in Maharashtra. (Refer Column No. 4 Table

No.3.4), pendancy of cases when discussed with Prin. Secretary

to Food, Civil Supplies & Consumer Protection Dept. Maharashtra

State Shri Ramkrishnan, he stated the reasons for pendancy viz:

i) Inadequate Infrastructure ii) Inadequate staff. The

staff of Mumbai Suburban District Fora also cited the same

reasons for the pendancy of cases. It is observed that the post of

the President of forum, many times remains vacant for a specific

period, which causes piling up of the cases and leads to such a

high percentage of pendancy.

It can be inferred that pendancy of cases ranged between

31% and 43% for more than 13 years period has defeated the

object “speedy redressal for consumer grievances” of consumer

protection Act 1986.

Causes for Pendancy

i) Inadequate Infrastructure

It is noted that out of 34 districts in the state, construction

of office buildings for state commission and 14 district fora was

commenced during 1995-97 in the respective collectorate

campuses. These works were completed during 1998-99 i.e. after

12 years of enactment of CP Act 1986.

In the remaining 20 district foras, 8 are functioning in Govt.

premises, whereas 12 functioning in rental premises. However, it

is also noted that the proposal of constructions of buildings for 16

fora was included in the state action Plan (2004-09), forwarded to

GOI in June 2004. This is yet to be approved by GOI (August

2005). No proposal for building Mumbai District Fora offices is

however submitted, as suitable land was not available.

75

It is observed that in Mumbai fora as well as in State

Commission, facilities like waiting rooms, library, zeroxing,

computer, fax and adequate furniture are partially available. This

is the position of consumer fora in Metropolitan city like Mumbai.

ii) Inadequate Staff

Inadequate Staff attached to Redressal Agencies is also one

of the causes for the slow functioning of these consumer fora.

Shortage of staff has thus contributed to the pendancy directly.

The statistics on the results of the no. of cases disbursed for period

1996 - 2005 at Mumbai Suburban District Forum is given in the

following table

Table No. 3.9 : Year wise Position of the Cases at

Mumbai Suburban District Forum

YEAR

For

consumers

Dismissed

/ Against

consumers

Withdrawn

/ Settled

Disposed Off

Pending

Total Returned Closed

1996 158 299 68 66 18 12 621

1997 215 259 60 32 10 20 596

1998 209 246 70 151 221 105 1002

1999 245 260 110 292 57 359 1323

2000 134 225 137 52 68 200 816

2001 105 156 146 83 55 217 762

2002 45 92 27 22 33 222 441

2003 35 50 31 27 29 239 411

2004 14 19 26 32 85 332 508

2005 5 4 18 13 75 467 582

Total 1165 1610 693 770 651 2173 7062

% 16 23 10 11 9 31 100

(Source : Mumbai Suburban District Forum, Bandra.)

76

Table No 3.10 : Position of Total Cases with Mumbai Suburban

District Forum Bandra up to 2005

Status No. of Cases Percentage

Complaints Registered 9360 100

Complaints Disbursed 7084 76

Complaints Pending 2276 24

Results in favour of Consumers 3480 37

Results against Consumers 3604 39

(Source: Mumbai Suburban District Forum (MSDF), Bandra)

PERFORMANCE OF DISRICT FORUM - MUMBAI

PENDING24%

IN FAVOUR OF CONSUMERS

37%

AGAINST CONSUMRES

39%

PENDING IN FAVOUR OF CONSUMERS AGAINST CONSUMRES

The judgements delivered in the cases have been categorized

under the following main headings –

77

i) Judgements for Consumers

Taking in to account overall position of the cases registered with

MSDF, Bandra, Mumbai during the last decade i.e. 1996-2005, it is

observed that out of 7062 cases registered, 1165 no. of cases are given

verdict in favour of consumers. Though the percentage works out to 16, it

can be said that purpose of redressing the grievances of the consumers in

the Consumer courts established at District level seems to be partial

fulfilled. In such cases the forum has ordered the opponents to take

steps to remove the causes of consumer dissatisfaction and,

generally, to pay some monetary compensation for the damage

suffered by them.

ii) Cases Dismissed

Considering no. of cases dismiss at 23% level from the table no.

3.9, during the decade 1996-2005, it can be said though consumers

approach the forum with their grievances and register their complaints, the

main causes for their failure are the ignorance on the part of the

consumers about provisions of consumer laws, lack in fulfilling the

administrative requirements for filling of the cases and absence of

complainant as well as opponent consistently during the proceedings. Un-

substantive, vexatious or frivolous or misconceived complaints may be the

additional reasons for the failure of the cases.

iii) Cases Withdrawn

The close study of the table no. 3.9 brings out the observation that

during the last decade i.e. 1996-2005, 693 cases i.e. 10% of the total

cases filed (7062) have been found withdrawn. In some cases,

consumers have been found withdrawing their cases even before

they came up for hearing. The motives behind withdrawal are found

not clearly established. Some times consumers have withdrawn their

cases as a result of out- of- court settlement. Parties to complaint

seem to have mutually solved such cases. These cases should ideally be

78

considered as a victory for consumers since it is unlikely that they

would have accepted to withdraw the cases without their demands

having been met.

iv) Cases Disposed Off

Table No 3.9 presents a review of decade long registered cases with

the District Forum, which reveals that 11% i.e.770 nos. of the total cases

i.e. 7062 nos. registered, are disposed off. It, therefore, needs to be

stressed upon the consumers to get themselves acquainted mainly with the

terms required for the admissibility of the cases in the Consumer Forums

and other administrative requirements thereof. As such several cases are

disposed off (closed/returned) on technical grounds, either

immediately on registration or after some lapse of time. Reason for

such disposal were : Complaints, being, beyond the forum’s

pecuniary or territorial jurisdiction or outside the scope of the

Consumer Protection Act 1986.

It is observed from the huge pendancy, i.e. 31% of the cases,

that the consumer forum is following into the footsteps of civil

courts. The situation is undesirable and needs to be corrected, if

consumers’ interests are to be protected.

Consumer Protection Councils

Another important development which took place in

consumer movement in post liberalization era is the establishment

of consumer protection council. The section (7) of Consumer

Protection Act 1986 provides for the establishment of a state

consumer protection council in respective state.

79

Objective of the State Council

The objective of State Council is to promote and protect within

the state the rights of consumer laid down in clauses (a) to (f)

section (6) of the Consumer Protection Act (C.P.Act) 1986.4

The state Govt. has established councils since 1987 in

Maharashtra every 3 yrs. Following table depicts the

establishment of councils.

TABLE NO. 3.11 : State Consumer Protection Councils

Councils Establishment

Year

Dissolution Year

First Council 1987 1990

Second Council 1990 1993

Third Council 1993 1996

Fourth Council 1996 1999

Fifth Council 2002 2005

Sixth Council Yet to be established

(Source: Department of Food Civil Supplies & Consumer Protection, Govt. of Maharashtra.)

From the above table it indicates that up to 1999 for every

three years. State Councils were established as per Schedule. In

contrast fifth council, however, is established in the year 2002. In

fact it should have been established in the year 1999, following

the expiry of fourth Council. Establishment of fifth council thus

accounts for a delay of three years. Section 7 (3) of the C.P. Act

provides for at least two meetings of the council every year. From

the perusal of the records made available to the researcher, it

was noticed that though meetings were held on two occasions in

the year 2005, their minutes were however not made available.

4 The C. P. Act 1986, Universal Law Publishing Co. Pvt. Ltd. 1996 pg.11

80

Such lethargy may cause delay in submission of report to govt.

The Govt. is framing the policy for promoting and protecting

consumer rights and making necessary changes therein. On the

basis of such reports delay caused in submission of this report

thus indirectly hamper the framing and implementation of policies

related to consumer protection.

The discussion with office bearers of Department of Food,

Civil Supplies and Consumer Protection revealed that up to 2005

they were busy in setting-up of state commission and 34 district

fora, making provision for infrastructure facilities to these fora,

like separate buildings, staff, furniture for their smooth

functioning. As such, other objectives and respective policy could

not be framed.

This in turn indirectly may become one of the factors

responsible for creating hurdles in consumer movement.

Consumer Guidance Centers

To support the redressal activities set-up by the Govt. the

consumer associations have established Consumer Guidance

Centers for consumer redressal in Mumbai. They provide guidance

to consumers regarding legal aspects of the complaint, the

procedure of filing the case, the redressal agency with whom case

can be filed, documents required to be submitted at the time of

filing the case etc.

All the three active consumer associations in Mumbai viz:

CGSI, ACASH & MGP are rendering services for providing guidance

to consumers. It is observed by the researcher on her visit to

these organisations that CGSI & ACASH provide consumer

guidance at their offices only. They don’t have separate rooms to

provide such type of informative guidance. MGP has set-up ten

81

guidance centers in different parts of Mumbai Suburbs to provide

guidance to the large no. of consumers visiting to their centers.

MGP has trained about 40 activists in the field and they are

offering their services in the evening, voluntarily, at different

centers. Three trained activists are allocated generally to each

centre. A separate schedule is prepared by MGP for consumer

guidance Centre Two consumer guidance centers are set up in

North Mumbai - one at Borivli & second at Goregaon, for the

benefit of consumers.

The noteworthy difference in the functioning of these

consumer guidance centers observed by researcher is CG centers

of ACASH & CGSI are basically located in their head offices only

at Greater Mumbai. The guidance centers cum offices function

during the working hours on normal days. Therefore, common

man, seeking guidance from these centers has to take a leave

from his work place and visit these centers. As such common man

being exploited in market place though having strong desire to

seek guidance from these agencies, continue to suffer and

postpone every time to visit such centre due to the inconvenience

faced.

In case of MGP so far as their guidance centers are

concerned, situation is to the advantage of consumers. Since

these guidance centers are located in the different suburbs of

Mumbai and are functioning beyond normal working hrs.ie. from

18 hrs to 20.30 hrs., aggrieved consumers have a choice to select

a centre in the near vicinity of his residence and can visit the

same on return from his normal duties.

Consumer Welfare Fund

Another important development which has taken place in

India is the setting up of the fund for protecting and promoting

82

consumer welfare. The objective of setting up the consumer

welfare fund is to set up facilities for training, research, testing

laboratories and consumer awareness.5 The rules pertaining to

consumer welfare fund were framed in 1992. As per these rules

the fund was created in the year 1993 from excess excise

recoveries

Until now more than Rs. 30 crores has been credited to this

fund. The fund is used exclusively for the consumer movement.

Govt. has given out grants to the extent of Rs. 1.5 crore.

Similarly Maharashtra Government has created a State

Consumer Protection Fund out of excess recoveries made under

the Sales Tax Act.

The interview with the chairman of CGSI Dr. Shenoy

revealed that CGSI received the financial assistance of Rs. 5 Lacs

from Consumer Welfare Fund to prepare Adulterated Salt

Detection Kit. CGSI utilised this fund for preparation of such kits.

With the co-operation of different school authorities, CGSI

distributed these kits to the school going students of Thane &

Raigad districts. In this way CGSI created awareness among

school going students and their staff members regarding, “Right

to safety”.

The availability of financial assistance motivated consumer

associations to undertake awareness programs. As such,

awareness of Consumer Protection Act 1986 and consumer rights

and responsibilities and redressal system is created in different

parts of the country. In this manner, it can be said that the

consumer movement has reached the different parts of the

country. However in the field of research and setting of testing

laboratories, the growth is not visible.

5 Records of Dept. of Food, Civil Supplies and Consumer Protection, Govt. of Maharashtra, Mumbai 2005

83

Consumer Co-ordination Council (CCC)

Next important mile stone reached in consumer movement

in India is that of setting- up a consumer co-ordination council by

a group of leading consumer activists. Consumer Co-ordination

Council (CCC) was formed in April 1992 when a group of

prominent consumer activists from various consumer

organisations came together at the behest of Friedrich - Naumann

- Stiftung (FNST), a German foundation. The idea was to work as

a single body on issues relating to consumer interests and policies

affecting them. The consumer co-ordination council (CCC) was

registered as a society in March 1993, with Late H. D. Shourie as

a founder Chairman. The Citizen Charter campaign was launched

by CCC in 19966.

Establishment of CCC provided a common platform for

representatives of consumer associations to come together and

co-ordinate different activities of their associations in a particular

direction with a common goal. Earlier before the establishment of

CCC all the consumer associations were quite active and pursuing

their own consumer welfare programmes, activities independently.

However, due to lack of co-ordination and rapport among these

consumer associations, consumer movement was progressing in a

haphazard and unorganised manner with slow pace.

In the prevailing circumstances though consumer

associations were putting in lot of efforts for consumer welfare

activities, the benefits were not reaching the consumers for whom

the activities were persuaded, to a desired level. Formation of

CCC brought in co-ordination among different consumer

associations which might be expected to give a focused direction

6 Website: www. core. nic. in

84

to consumer movement in coming years. Co-ordination among all

consumer organisations will result in harmony for consumer

welfare programs.

Sustainable Consumption

In the year 2001, the concept of sustainable consumption

came to the fore of consumer movement progressing in India.

This concept initially originated in Oslo symposium held in 1994.

It gave a definition of sustainable consumption as “Sustainable

consumption is the use of goods and services that respond to

basic needs and bring a better quality of life, while minimizing the

use of natural resources, toxic materials and emission of waste

and pollutants over life cycle, so as not to jeopardize the needs of

future generations.”7

In simple words, sustainable consumption means consuming

more meaningfully and more efficiently, Keeping in view, the

needs of the future generations and the fact that the natural

resources are scant, finite and will run out some day8.

A sustainable consumption is a need of an hour. It is observed

that consumer movement in Mumbai is gearing up in that

direction.

Enactment of Competition Act 2002

Following the guidelines of CI for sustainable consumption,

the year 2001 and its initiation thereafter, there came the

enactment of competition Act & Information Technology (IT) Act

in the year 2002. The competition Act replaced earlier Monopolies

& Restrictive Trade Practice (MRTP) Act.

7 Search MNN, Consumer, Cuts Publication. 8 Dr. Manohar Panajkar, ‘Sustainable Consumption’, Grahak Deep, MGP Publication, Oct. 2001.

85

In post liberalisation era (i.e. after 1991) as a result of

economic reforms number of mergers, amalgamations &

absorptions took place in the Indian market. Due to the effect of

these mergers & acquisitions, a peculiar situation started

emerging in the market place. It appeared as if restrictions to

competition may adversely affect consumer interest. In order to

circumvent the probable situation likely to be emerged,

competition act was enacted in the interest of consumers.

Right to Information Act. 2005

On 28 September the world celebrated the International Right to

Know Day. This year the day was significant to bureaucracy and the civil

society since, the Right to Information Act, 2005 came into force in

October 2005. This is 120 days from the 21 June 2005, the day the

President APJ Abdul Kalam gave his assent to the Right to Information Bill

2005 which had previously been passed with amendments by the Lok

Sabha (11 May) and the Rajya Sabha (12 May). Since consumer

organizations are one of the most important stakeholders in the successful

implementation of the Right to Information Act, 2005 the newsletter of

these associations focused on the Right to Information Act.

Observations

After 1991 liberalization, globalization policies together with

tremendous developments in manufacturing, distribution and

communication, brought in availability of variety of Indian and Imported

goods for Indian consumers. In such a market scenario, the consumer

movement is accelerated with systematized and organized manner.

However the pace of acceleration of consumer movement is found to be

very slow.

Following the enactment of Consumer Protection Act (CPA) in the

year 1986 chronology of events in the post liberalisation era, that led to the

86

development of consumer movement in India and particularly in North

Mumbai is furnished below.

Table No. 3.12 : Important Events of Consumer

Movement in Post Liberalisation Era.

Sr. No.

Year Events

1

1991 Establishment of Consumer Protection Dept. and

its attachment with Food and Civil Supplies Dept.

and now renamed as Food Civil Supplies &

Consumer Protection Dept.

2 1987-92 Establishment of Redressal Agencies

3 1987-92 Establishment of Consumer Protection Council

4 1992-93 Consumer Guidance Centre

5 1992-93 Set up of Consumer Welfare Fund

6 1992 Establishment of Consumer Co-ordination Council

7 1993-99-

2002 Amendment of C. P. Act 1986

8 1995 Provision of Infrastructural Facilities to Redressal

Agencies

9 2001 Sustainable Consumption Movement

10 2002 Enactment of Competition Act

11 2005 Enactment of Right to Information Act

The department of Consumer Protection was established

with its set organisaton structure along with redressal agencies,

in order to frame and follow- up objectives, policies & action

plans in respect of consumer protection. For this sincere attempt

on the part of Maharashtra Government, the awareness campaign

87

for the consumers got initiated at earlier stage. It focused on

making the consumer aware of his rights, responsibilities and the

procedure for approaching the redressal agencies with their

problems. As a result, the consumer associations got boost up to

plan and conduct their activities enthusiastically in the form of

awareness campaign. These activities, though conducted by the

Government and consumer associations’ separately, contributed

immensely to the pace of the consumer movement.

It is pertinent to note that as far as objectives and policies

for consumer protection are concerned, except setting- up of

redressal agencies and initiating awareness campaign, neither the

specific objectives were set nor the policies framed as per

guidelines of Central Government by the State Government up to

the year 2004, since 1991. This is evident from the fact that the

action plan has been submitted by the Government of

Maharashtra to Government of India in the year 2004 only i.e.

after the lapse of 13 years, since the establishment of department

of consumer protection.

The lethargy on the part of the state government in

establishing fifth consumer protection council, with a delay of

three years, has certainly put hurdles in the fast growth of

consumer movement.

The facilities, such as training, research, testing labs to

support consumer movement through consumer’s welfare fund,

are found not at all adequate.

CCC doesn’t seem to be that active in giving concrete

directions to consumer movement.

As per the experience and time laps attempts were made to

amend the C.P.Act 1986 (Detail are given in Chapter No.VI)

88

Earlier consumers used to consume less and used to find

difficult to satisfy basic needs due to shortage of goods and

services. Now, in the changed scenario of market place, where

plenty of goods and services are available, it has became difficult

for consumers to accept the theme of sustainable consumption

i.e. consume as per the necessities only. Moreover creating mind

set of consumers in favour of sustainable consumption is a

challenge to present consumer movement.

Enactment of act widens the scope of consumer movement,

however finally the success and growth of consumer movement

depends upon its effective implementation.

With reference to the table No. 3.9, the total pendancy of cases

registered with Mumbai Suburban District Forum, Bandra is up to 31%.

From the table No. 3.9 it is also found that the pendancy of cases for the

years 2002, 2003, 2004 and 2005 is 50%, 58%, 65% and 80%

respectively, which is in an ascending order. Section 13 (3-a) of C. P. Act

1986 calls for the complaint to be decided within a period of 3 months from

the date of receipt of notice by opposite party. As per the section 13 (a), a

notice is required to be given to the opposite party within a period of 21

days from the date of admission of the complaint. It is clear from said

provisions that the complaint is required to be decided within a maximum

period of four months from the date of admission of compliant provided

testing the product is not required. However it is found from the records of

the proceedings of the cases studied that decision of the complaint is not

given for three years or in some cases even for more than three years.

On the basis of the above observations following points are

recommended to accelerate consumer movement.

89

Recommendations

Adequate staff and infrastructural facilities to be provided for

effective and smooth functioning of Redressal Agencies.

Consumer should be made aware of their responsibilities.

The State Government should establish council after every

three years to promote and protect consumer rights on regular

basis. Minimum two meetings are required to be held and specific

objectives and concrete policies for consumer protection are to be

decided, framed as per Central Government guidelines and monitored

for protecting consumer rights in real sense.

The consumer welfare fund is to be utilized for establishing

the training, research and testing laboratories at different places in

order to educate consumer and protect their ‘Right to safety’.

Consumer Co-ordination Council should be more active so that

benefits of consumer welfare activities will reach to consumers at

desired level.

Effective implementation of many developmental programmes

policy decisions taken and decided by Government is required to

accelerate consumer movement in right directions. For this the

attitudinal change on the part of market players, consumers as well

as Government is most essential.

On the basis of the above mentioned observations made, it can be

concluded that in spite of enactment of C. P. Act 1986, establishment of

redressal authorities, provisions made for time bound redressal of

consumer grievances; the consumers are not adequately protected. The

data obtained on pendancy of the cases from MSDF, Bandra also

90

strengthens the contention that Consumers of North Mumbai are not

adequately protected. Therefore it can be conclusively said that the

hypothesis No. 1 “Consumer Protection Act 1986 does not provide

adequate protection to the consumer against their exploitation” is

confirmed.

Conclusions

Government and Consumer Associations have adopted

various possible measures to accelerate the consumer movement.

In turn the consumer movement got accelerated at a faster pace

at the initial stage. All these measures were taken to promote a

strong and broad based consumer movement.

At a later stage, however due to lethargy, in-effective

implementation and insufficient support from all corners,

consumer movement got slowed down. As a result, same hasn’t

developed up to the expectations to keep pace with fast emerging

developments in the market. The no. of cases registered with the

forums indicates that the consumer is still getting exploited in the

market place to a greater extent. It implies that consumer who is

expected to be the real beneficiary of the discussed measures is

not getting the actual benefits.

In order to halt exploitation of consumers the attitudinal

change on the part of market players, consumers as well as

government is most essential. It is not possible to effect the

necessary change over night, since it is a long term social

movement. As we have witnessed that growth of the consumer

movement has got initiated, it will get strengthened only with the

genuine efforts of the government agencies, consumer

associations, market players and consumers themselves in the

years to come.

*****