Date:18/08/2005 URL: http://www.thehindubusinessline.com/2005/08/18/stories/2005081803320900.htm

Back `Consumer courts must penalise cos manipulating markets'

Our Bureau

The Finance Minister, Mr P. Chidambaram, with Mr Justice M.B. Shah, Chairman, National Consumers Dispute Redressal Commission, at a conference on consumer affairs in the Capital on Wednesday. — Ramesh Sharma

New Delhi , Aug. 17

THE Government today asked consumer redressal courts to levy punitive damages on erring companies to safeguard the interest of consumers.

"There are innumerable examples that could be cited where markets are often manipulated and abused. Class action is needed to uphold consumers rights," the Finance Minister, Mr P. Chidambaram, said at the National Consumers Dispute Redressal Commission Foundation Day ceremony.

"The forum should not shy away from levying punitive damages, which will set right predatory practices," he said. Consumers can be empowered through capacity building, broadbasing the knowledge regarding consumer rights and class action, he said, adding "if need arises, then existing provisions can also be amended."

Lauding the consumer dispute redressal mechanism in the country, the Finance Minister said, "We have a fairly high rate of consumer dispute redressal."

The National Consumers Dispute Redressal Commission has been able to dispose off 78 per cent of cases, while State forums have achieved 67 per cent success and district-level forums have an 84.6 per cent success rate.

Admiring the record of consumer redressal forum, he said as the rate of disposal rises, more people would be interested to come forward with complaints.