A STUDY ON WORKING OF DISTRICT CONSUMER DISPUTES REDRESSAL FORUMS IN KARNATAKA STATE. Ramnagar,Karnataka.

Transcription

1 A STUDY ON WORKING OF DISTRICT CONSUMER DISPUTES REDRESSAL FORUMS IN KARNATAKA STATE. SUSHMA D.B 1 DR.A.VENKATARAJU 2 DR.B.GANESH 3 PRAMOD UDUPA B 4 1 Research Scholar, Dept. of Business Administration, Kuvempu University, Shankaraghatta, Shivamogga. 2 Professor and Director, National Intitute of Post Graduate Studies, A.T.N.C.C, Balaraj Urs Road, Shivamogga. 3 Director, College Development Council, Kuvempu University, Shankaraghatta, Shivamogga. 4 Research Scholar and lecturer,camebridge P. U Science and commerce College, Channapattana, Ramnagar,Karnataka. ABSTRACT The present study is an attempt to analyse the working of Consumer Dispute Redressal Agencies in Karnataka state and to identify the factors influencing adversely, the performance of these forums. It has been observed, during the study, that all the district forums of Karnataka, with the exception of a few district forums, have demonstrated a satisfactory performance in disposal of cases. But, when compared to number of cases of consumer exploitation, deception and neglect in the state, the number of consumer cases filed in these agencies since inception, is alarmingly small. Further, cases pending over 6 months, 1 year and 2 years also focus on the reality that the purpose of restoration of justice to the consumer without delay, has not been achieved satisfactorily, even after the establishment of these forums. These agencies will work with greater effective and efficiency and demonstrate desired performance, when consumers become aware of their right and measures of redress, develop resistance against injustice and get united to stage protest against commercial terrorism and when the government takes necessary legal and administrative measures to make these agencies more effective and efficient to demonstrate desired performance. Introduction The consumer, world over, is living in a society surrounded by several socio-economic and political evils and malpractices in marketing. Fleecing the customers has become so widespread that no sphere remains untouched by the insidious malady. The nature and the extent of consumer deception, exploitation and neglect vary in accordance with the socio-economic and political conditions prevailing in the country. Hence, arises the necessity of consumer protection, world over. Consumer protection may be viewed from three angles. The first is physical protection of consumersthe measures to protect consumers against products and services that are unsafe and endanger the health. The second is protection of consumers economic interest - the measures to protect them against deceptive and unfair trade practices. The third one is to provide adequate rights and measures of redress. It is true that the Government of India has realized the importance of consumer welfare and the need for protection of consumers against a wide range of product flaws, service failures, commercial terrorism and bureaucratic harassment. It has passed a series of legislations and created several machineries to implement these legislations and to supervise the implementation measures. Some of these legislations are Agricultural Products Act, 1937, Drugs and Cosmetics Act, 1940, Indian Standard Institution Act, 1952, Prevention of Food Adulteration Act, 1954, MRTP, Act, (Amended in1984) etc, But, they have failed to address the problem of consumer exploitation directly icmrrjournal@gmail.com

2 In order to overcome various limitations in the above legislations and to address the problem of consumer protection directly, The Government of India enacted consumer protection Act, 1986, a comprehensive piece of legislation protecting the consumer Interest. The Act has been amended in 1993 and 2003 so as to make it more effective. The consumer protection Act, 1986, extends to the whole of India except Jammu and Kashmir, and applies to all goods and services. It recognizes the role of voluntary consumer organizations. The Act provides for setting up of consumer protection councils at district, state and central levels to promote and protect consumer rights provided by the Act. The Act also provides for establishment of consumer disputes redressal agencies to provide simple, speedy and inexpensive remedies to the aggrieved consumers. The redressal agencies have been promoted from the status of quasi judicial bodies to the status of civil courts, so as to make them more powerful in connection with enforcement of orders. The present study concerns itself with evaluation of working of district consumer redressal forums in Karnataka state in India. There are 32 district consumer disputes redressal forums working presently, in Karnataka. The study is an attempt to analyze the working of these forums, identify the factors affecting their performance. Review of Literature Several studies have been conducted on the issues like consumer legislations, consumer redressal agencies, consumer rights and awareness, and consumer protection. These have taken the forms of articles, books, research papers, research theses etc. In what follows is the brief review of some of these research works: 1. T.N.Pandey concluded in his study (1989)that within a short period of time since Consumer Protection Act came in to existence, there has been a tremendous impact and new legislation has restored the prestige of the consumer. 2. Pradeep S.Mehtha, in his article (1991),opined that existence of the act is not sufficient, what is required is awareness and assistance from the people well versed in consumerism. 3. In the editorial of Hindu ( May 15th,1992),Editor observed that Consumer Protection Act,1986 came out as fresh breath of our democracy. 4. Shorurie, in his study(1993), opined that functioning of District Consumer Disputes Redressal Forums was unsatisfactory. He highlighted some of the causes for the same, such as, problems of staffing, inadequate infrastructure, provision of funds etc. 5. Kaushal Anup K, in his book(2010), analysed the concepts and issues in consumer Protection Act and listed out the circumstances under which consumer can approach the redressal agencies for filing complains. 6. Dr.Shambhav Garg, in his study(2010),observed that the Consumer redressal agencies are functioning well in India. He concluded with a fact that District Consumer Redressal Forums in India are striving their best, but, there is critical need for speedy settlement of pending cases at state and national commissions. Need for and Scope of The Study The Act has been in operation for the last 29 years. The Consumer Redressal Agencies have been operating since then. When compared to the number of cases of consumer exploitation, the number of cases filed in these agencies is very small. Although the Act prescribes the time limit for disposal of complaints, it has been the opinion of many aggrieved consumers that there has been, still, 23 icmrrjournal@gmail.com

3 a considerable delay in disposal of consumer cases. It appears that the very purpose of establishment of these agencies, namely, delivery of the justice to the consumers without delay, has not been achieved Satisfactorily. This makes it imperative to analyze the working of these agencies. Such an analysis helps to identify the factors influencing adversely their working and helps in taking necessary measures to improve the performance of these agencies. Although these agencies constitute three tier system including district consumer disputes redressal forums, state Consumer Disputes Redressal Commission and National Consumer Disputes Redressal Commission, the present study confines itself to the analysis of working of District Consumer Disputes Redressal Forums and geographical area is confined to Karnataka state in India. Statement of Research Problem The present study is an attempt to assess the working of District Consumer Disputes Redressal Forums in Karnataka state. The study tries to analyse the working of these forums since their inception, present factors influencing adversely the working of these forums and to suggest measures for enhancement effectiveness in their working. Hence, the research problem has been stated as A Study on Working of the District Consumer Disputes Redressal Forums in Karnataka state. Objectives of the Study The following objectives have been set for the study: 1.To present a legal framework of Consumer Disputes Redressal Agencies in India. 2.To analyze the working of District Consumer Disputes Redressal Forums in Karnataka. 3.To identify the internal & external factors influencing adversely their working. 4.To sagest measures, in the light of finding of the study, for enhancement of effectiveness in their working. Methodology The present study is based on both secondary and primary data. The secondary data has been collected flow text books, articles; research works and Karnataka consumer disputes redressal commission s report (kscdrc.kar.nic.in)etc. The primary data has been collected from officials of district forums, lawyers, members of voluntary consumer organizations and aggrieved consumers by interview method. The data so collected has been analyzed and interpreted using simple statistical tools and the suggestions have been made in the light of findings of the study. Consumer Disputes Redressal Agencies in India: A Profile The Consumer Protection Act lays down the provisions for the establishment of the following Consumer Disputes Redressal Agencies: 1.District Consumer Disputes Redressal Forum to be known as District Forum established by the state government in each district.(however, if the state government deems fit, additional forums may be established.) 2.State Consumer Disputes Redressal Commission to be known as state Commission established by state government. 3.National Consumer Disputes Redressal Commission established by central government. District Forum consists of a person who has been or qualified to be district judge, who shall be its president and two persons, one of whom shall be a lady social worker. It has jurisdiction to entertain complaints, where value of goods or services and compensation, if any,does exceed Rs.20,00,000/-.The state commission consists of person, who has been qualified to be high court 24 icmrrjournal@gmail.com

4 judge, who shall be its president and two other member one of whom shall be woman. It shall entertain complaints where the goods or services and compensation, if any, exceeds Rs. 20, 00,000/-,but does not exceed Rs. one core and any appeals against the orders of district forums within the state. The national commission consists of person who has been qualified to be the Supreme Court judge, who shall be its president and four other persons, one of whom shall be woman. It shall entertain complaints, where the value of goods or the services and the compensation, if any, exceeds Rs. one core and appeals against the orders of any state commission. Complaints, in respective agencies may be either field by the Consumers or by the registered voluntary consumer organizations or the government, within two years from the date of cause of action. Complaints may be on loss due to unfair trade practices, defects and deficiencies in goods and -services and excess price charged by the suppliers. The consumer redressal agencies should resolve the complaints within three months in case where laboratory tests are not required and within five months where laboratory tests are needed before the resolution of the complaints. The appeals to the higher consumer redressal agencies should be made within thirty days of the judgment in the lower agencies. The complainant need not engage advocates. The complaints may be given in white paper with relevant evidences. This is how the Act has provided for simple procedure for speedy disposal of consumer cases. The consumer redressal agencies are empowered to give relief in the form of removal of defects, replacement of goods, return of charges met by complainant and payment of compensation. An order of a consumer redressal agencies is enforceable in the same manner as if it were decree or order of a civil court. Analysis and Interpretation of Data The data collected from Karnataka State Consumer Disputes Redressal Commission s report (kscdrc.kar.nic.in)has been analysed and interpreted. The details of analysis has been presented below: 25 icmrrjournal@gmail.com

5 TABLE No-1 - DETAILS OF CASES FILED AND DISPOSED IN DISTRICT FORUMS OF KARNATAKA SINCE INCEPTION UP TO 30TH NOVEMBER,2014 NUMBER NUMBER PERCENTAGE SL. NAME OF THE DISPOSED FIELD SINCE OF DISPOSED No DISTRICT FORUM SINCE INCEPTION CASES INCEPTION Bangalore Urban Bangalore Rural Bangalore Urban I addl Bangalore Urban II addl Bangalore Urban III addl Bangalore Urban IV addl Bellary Belgaum Bidar Bijapur Chickmagalur Chitradurga Dakshina Kannada Dharwad Gulbarga Hassan Kolar Kodagu Mandya Mysore Raichur Shimoga Tumkur Uttara Kannada Udupi Davangere Haveri Chamrajnagar Gadag Koppal Bagalkot Yadgiri TOTAL Source: Karnataka State Consumer Disputes Redressal Commission s report (kscdrc.kar.nic.in) 4 Table-1 Presents the details of cases filed, disposed and pending in different district forums of Karnataka since inception. It also presents percentage of number of cases disposed on number of cases filed. The table reveals the following: 26 icmrrjournal@gmail.com

6 a)the total number of cases filed in district forums of Karnataka since their inception is 1, 72,906. When compared to number of cases of exploitation of consumers, this number is very very small. The reasons contributing for one same may be lack of awareness among consumers about their rights and measures of redress, lack of proper education and guidance, lack of resistance from consumers etc. b) Bangalore urban, Bangalore urban 2 and 3, Dakshina Kannada, Mysore, Shivamogga, Chamarajanagar, and Dharwad forums have ranked high in receipt of consumer cases with Bangalore urban topping the list. Koppal, Bagalkot and Yaagiri are at bottom in this regard, which can be attributed to their recent establishment. C) As far as disposal of cases is concerned, Dharwad, Chitradurga, Kolar, have demonstrated very high performance with more than 98% disposal. Except a few forums like those of Chamarajanagar, Yadgiri, Mysore and Bangalore 3, all the forums have recorded satisfactory performance with more than 90% disposal. Table 2 DETAILS OF CASES UO TO 6 MONTHS (REPORT AS ON 30TH NOVEMBER,2014) SL.No. INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW NAME OF THE DISTRICT FORUM NUMBER AT THE END OF THE MONTH PER PENDIN PER WITHIN CENTAGE G OVER 90 CENTAGE 90 DAYS ON TOTAL DAYS Bangalore Urban Bangalore Rural Bangalore Urban I addl Bangalore Urban II addl Bangalore Urban III addl Bangalore Urban IV addl Bellary Belgaum Bidar Bijapur Chickmagalur Chitradurga Dakshina Kannada Dharwad Gulbarga Hassan Kolar icmrrjournal@gmail.com

7 18 Kodagu Mandya Mysore Raichur Shimoga Tumkur Uttara Kannada Udupi Davangere Haveri Chamrajnagar Gadag Koppal Bagalkot Yadgiri TOTAL Source: Karnataka State Consumer Disputes Redressal Commission s report (kscdrc.kar.nic.in) Table 2 presents details of cases pending up to 6 months. It makes the following points clear: a) Bangalore urban I, Bangalore urban 4, Dharwad, Chitradurga, Gadag and Koppal forums have high percentage of cases pending within 90 days, with Bangalore urban 4 topping list with about 94%.It is a matter of concern that forums of developed district like Bangalore urban1 and 4, Dharwad and Mysore have high percentage of cases pending within 90 days. b) As regards cases pending over 90 days and up to 06 months, Bidar, Mandya, Chitradurga, Tumkur and Koppal place themselves at top with more than 30% of respective pending cases icmrrjournal@gmail.com

8 TABLE NO.-3 DETAILS OF CASES OVER 6 MONTHS (REPORT AS ON 30TH NOVEMBER,2014) SL.N o. INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW NAME OF THE DISTRICT FORUM CASES OVER 6 MONTHS UPTO 1 YEAR OVER 1 YEAR OVER 2 YEARS TOTAL NO. OF CASES OVER 6 MONTHS PER CENTAGE OF CASES OVER 6 MONTHS Bangalore Urban Bangalore Rural Bangalore Urban I Addl Bangalore Urban II Addl Bangalore Urban III addl Bangalore Urban IV addl Bellary Belgaum Bidar Bijapur Chickmagalur Chitradurga Dakshina Kannada Dharwad Gulbarga Hassan Kolar Kodagu Mandya Mysore Raichur Shimoga Tumkur Uttara Kannada Udupi Davangere Haveri Chamrajnagar Gadag Koppal Bagalkot Yadgiri TOTAL Source: Karnataka State Consumer Disputes Redressal Commission s report (kscdrc.kar.nic.in) 29 icmrrjournal@gmail.com

9 It is very alarming to note that although the Act prescribes that cases where laboratory tests are not required, should be disposed within 3 months and cases where laboratory tests are required, should be disposed within 5 months, there are many instances where cases are pending over 6 months, over 1 year and over 2 year also. This indicates that the very object of provision of justice to consumer without delay has not been achieved satisfactorily even after passing of the CPA, Table 3 provides details in evidence of the same. It provides details of cases pending over 06 months, over 1 year and over 2 years. In district forums of Haveri, Mysore, Hassan, Dakshinakannada, Bangalore Urban 2 and Bangalore Urban 1, more than 70% of total pending cases are pending over 06 months. Bangalore Urban 2, Bangalore Urban 3 and Dakshina Kannada & Mandya have large number of cases pending over one year. Bangalore Urban, Bangalore Urban 2 and Haveari have large no of cases pending over two years. It reveals that these agencies have demonstrated the type of working which generally takes place in civil courts. Major findings: The following are major findings of the study: 1.The total No. of cases filed in the district forums of Karnataka since their inception till November,2014 is 1,72,905.When compared to the number of cases of exploitation and deception of consumers, this number is alarmingly small. The reasons contributing for the same may be lack of awareness among consumers about their rights and measures of redress, lack 0of proper education and guidance, lack of resistance from consumers, slow growth of voluntary organization especially in rural areas etc.. 2.Bangalore Urban,Bangalore Urban 1,2 and 3, Dakshinakannada,Mysore,Shivamogga, Chamarajanagar and Dharwad forums have ranked high with regard to filing of consumer cases with Bangalore Urban topping the list. Koppal, Bagalkot and Yadagiri are at the bottom of the list, which can be attributed to their recent establishment. 3.All District Forums in Karnataka, except Chamarajanagar,Yadagiri,Mysore and Bengaluru Urban 2 forums, have recorded satisfactory performance in disposal of cases with more than 90% disposal. 4.Forums of developed districts like Bangalor Urban 1and 4, Dharwad and Mysore have high percentage of cases pending within 90 days, followed by Chitradurga, Gadag and Koppal forums. 5.Bidar,Mandya,Chitradurga,Tumkur and Koppal forums place themselves at top in the list of District Forums with cases pending over 3 months and up to 6 months. 6.It is alarming to note that even though Consumer Protection Act,1986 prescribes that consumer cases where the laboratory tests not necessary, should be disposed within 3 months and cases, where the laboratory tests are required, should be disposed within 5 months, there are many instances where cases are pending over 6 months, over 1 year and over 2 years also. It forces the aggrieved consumers to feel that these agencies have resorted to a type working taking place in civil courts. This indicates that the very purpose of these agencies, namely, restoration of justices with out delay has not been achieved satisfactorily. 7. There are more number of complaints in these agencies from urban areas than rural areas.economic and educational development of an area has close relationship with filing of complaints in these agencies. Majority of the rural mass is still unaware of consumer rights and measures of redress. 8. These agencies are experiencing problems of inadequate staff for conducting trails and for enforcement of their orders icmrrjournal@gmail.com

10 Vacancies of president and members of these forums are not being filled up well in time. They are not properly equipped with police and enforcement personnel. These situations contribute for delay in justice being restored to consumers and in the process, consumers may lose confidence. Suggestions In the light of the findings of the study, the following suggestions have been made for the enhancement of effectiveness in the working of District Consumer Disputes Redressal Forums of Karnataka: 1.Since most of the consumers, especially rural consumers, are not aware of their rights and measures of redress provided by legislations, they are unable to protect their rights invoking the provisions of the Acts. Therefore, there must be sufficient arrangements for consumer education. Initiative should not only come from Government, but also from consumer voluntary organizations. 2.It has been observed during the study, that these forums experience problems of inadequate staff. Therefore, it is highly essential that Government takes necessary measures for the appointment of enforcement personnel and police staff. This enhances effectiveness in the working of these agencies. 3.It has been observed during the study that the vacancies of president and members of these forums are not being filled up well in time. Government should not make delay in the appointment of president and the members of the forums, so that delay in disposal of cases is minimised. 4.The Government should think in terms of amending the Consumer Protection Act in order to bring, under the ambit of same, the government departments, municipalities and corporations. Because, there has been exploitation of tax payers in these organizations. This will give an end to the interpretation that tax payers are not consumers. 5.The consumers should shed away their apathy and develop resistance against injustice. They should involve themselves in the main stream of consumer movement. Then only, the efforts of the Government to provide simple and speedy justice to the consumers will come out fruitful. Conclusion It has been observed during the study that all the district forums of Karnataka, with the exception of a few district forums, have demonstrated a satisfactory performance in disposal of cases. But, when compared to number of cases of consumer exploitation, deception and neglect in the state, the number of consumer cases filed in these agencies since inception, is alarmingly small. Further, cases pending over 6 months, 1 year and 2 years also focus on the reality that the purpose of restoration of justice to the consumer without delay has not been achieved satisfactorily, even after the establishment of these forums. These agencies will work with greater effectiveness and efficiency and demonstrate desired performance, when consumers become aware of their rights and measures of redress, develop resistance against injustice and get united to stage protest against commercial terrorism and when the government takes necessary legal and administrative measures to make these agencies more effective and efficient to demonstrate desired performance. REFERENCES 1. Pandey T.N, Consumer Protection Act,1986- Objectives and Achievements, Economic Times, October 18, icmrrjournal@gmail.com

11 2. Pradeep S.Mehtha, COPRA helps the retired to get their dues, Economic Times,August 28, Editoriel, Seilent Revolution, The Hindu, May 15, Shorurie, District forum yet to go in to full swing, Academic Times, August 1, Kaushal Anup K, Practical guide to Consumer Protection Act, Universal Publishing Company Pvt. Ltd., Delhi, Dr.Shambhav Garg, An Exploration in to Working and Performance of Consumer Disputes Redressal Agencies in India,Vol.No.1,Issue No. 1,May,2010,International Journal of Research in Commerce and Management. 7. R.S.N.Pillai,Bagavathi, Marketing Management, S.Chand Publishing,New Dehli, Karnataka State Consumer Disputes Redressal Commission(Web Ref: kscdrc.kar.nic.in), Report,November,