In a significant step toward expanding access to alternative dispute resolution mechanisms, the Lieutenant Governor of Delhi, V.K. Saxena, has granted approval to a proposal enabling the inclusion of banking, non-banking financial companies (NBFCs), and gas supply services under the category of Public Utility Services. This move will empower consumers to address grievances against these sectors through Permanent Lok Adalats (PLAs) instead of resorting to traditional litigation.
The initiative, forwarded by the Delhi Government’s Law Department, stems from the increasing volume of consumer complaints linked to faulty billing, delays in service, and EMI defaults involving financial and gas distribution entities. The department highlighted the need for faster, less expensive redressal mechanisms to handle disputes that often prove burdensome for common citizens lacking legal resources or time to pursue prolonged court battles.
Permanent Lok Adalats, established under the Legal Services Authorities Act, 1987, are quasi-judicial bodies designed to resolve disputes related to public utility services. These forums not only provide cost-effective and timely remedies but also possess the authority to adjudicate cases on merits if conciliation fails, provided the subject matter is civil in nature and devoid of criminal allegations.
Currently, three PLAs are operational in Delhi, primarily addressing disputes related to electricity distribution by private companies. With the latest development, consumers will now also be able to approach PLAs for grievances concerning banking services, NBFCs, and gas agencies. Plans are also underway to establish a fourth PLA to handle matters linked to other notified services such as transport, telecom, water supply, healthcare, sanitation, and insurance.
A senior official from the Delhi State Legal Services Authority (DSLSA) observed that the reform could prove especially impactful for vulnerable sections of society, including senior citizens, daily wage earners, and economically weaker litigants, who often face systemic disadvantages in accessing formal judicial mechanisms. “Delays in services like incorrect bank deductions or unresponsive gas suppliers can significantly impact daily life. The PLA route ensures these issues are resolved without undue hardship,” the official remarked.
Responsibility for implementation and administration of the newly included services within PLAs will lie with the Delhi State Legal Services Authority, which will facilitate filings and ensure smooth hearings in accordance with procedural norms.
This legal development is expected to substantially reduce the burden on civil courts while enhancing citizen access to justice in everyday service disputes.
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