Consumer welfare funds to take up your case

NEW DELHI: Harassed consumers can now look forward to some relief on being duped by service providers or manufacturers. The Department of Consumer affairs has proposed that consumer welfare funds be set up at the central and state levels.

This consumer protection fund, which would be partly funded by the government, would bear all financial burden of litigation on behalf of the consumer. The fund, which is expected to roll out by year end, would be set up with contributions from the government as also proceeds of disgorgement of unjust enrichment of producers or sellers, an official said.

The government would stake its claim on the ill-gotten and unjust profits of manufacturers and service providers if they are found guilty of cheating the customers. Centre would provide financial assistance in the annual budget, especially, in the first phase of the fund. At a later stage, the fund could run on its own from the proceeds from erroneous manufacturers or service providers.

Besides creating a national-level fund, the centre will also ask states to replicate the model at their level. Since, some of the states wanted centre to provide financial assistance to them to set up such funds, the centre has suggested contributing a specific percentage of value added tax or sales tax to bolster the fund.

The proposal may be discussed with the state finance ministers when they meet under the aegis of empowered committee to work out the road map for unified goods and services tax, he said. This will ensure penetration of consumer protection at regional level. The government will also create an apex National Consumer Policy Coordination Council to ensure that consumer protection issues receive the highest consideration in every area of governance. The council will regularly monitor and evaluate functioning of the fund both at central as well as state level.