India

Over 50,000 real estate cases await resolution in Indian Consumer Commissions

Synopsis

As of July 31, 2024, consumer courts in India are facing a significant backlog of real estate-related cases, with 50,258 pending out of 2,44,813 filed, according to data shared by Minister B L Verma in the Lok Sabha. Despite resolving 1,94,555 cases, the backlog highlights the inefficiencies in the current consumer redressal system. The Consumer Protection Act, 2019, aims to improve this by establishing a three-tier quasi-judicial system and expediting case resolution. Key provisions include virtual filing of complaints, a 21-day determination period for admissibility, and specific timeframes for case resolution. The e-Daakhil portal, now available in 35 states and UTs, further facilitates online complaint registration, aiming to enhance the efficiency and accessibility of consumer justice.

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As of July 31, 2024, a significant number of real estate-related cases are pending in consumer courts across India, according to recent government data. The data, presented by Minister of State for Food and Consumer Affairs B L Verma in a written reply to the Lok Sabha, highlights the extent of pending cases in consumer commissions specifically related to the real estate sector.

The statistics reveal that a total of 2,44,813 cases have been filed across the national, state, and district levels in consumer courts. Out of these, 1,94,555 cases have been successfully resolved, leaving 50,258 cases still pending. This backlog underscores the challenges in achieving swift justice within the current consumer redressal system.

The Consumer Protection Act, 2019, plays a crucial role in addressing these disputes, establishing a three-tier quasi-judicial system comprising district, state, and central consumer commissions. These commissions are tasked with safeguarding consumer rights and ensuring the prompt resolution of disputes. The Act emphasizes the need for an expedited adjudication process within these commissions, aiming to simplify procedures and provide consumers with a more accessible and efficient means of seeking justice.

Key features of the Act include provisions for the virtual filing of complaints, allowing consumers to lodge complaints with consumer commissions remotely. Moreover, the Act mandates that the admissibility of a complaint should be determined within 21 days of filing, otherwise, it is deemed admissible.

To further streamline the process, Section 38(7) of the Act stipulates that complaints should be resolved as quickly as possible. Specifically, cases that do not require the analysis or testing of commodities should be settled within three months from the date the opposite party receives notice. For cases requiring such analysis or testing, the resolution period is extended to five months.

In addition, the e-Daakhil portal, now operational in 35 states and union territories, has been introduced to facilitate the online registration of consumer complaints. This platform enables consumers to file complaints with various consumer commissions across India, offering a convenient and accessible way to seek redressal.

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