The Consumer Affairs Ministry has announced a significant step to expedite the resolution of consumer disputes through mediation. Empanelled mediators handling consumer cases will now receive compensation ranging from Rs 3,000 to Rs 5,000 from the government, aiming to encourage more complaints to be settled through mediation cells. This decision, following extensive consultations and regional workshops, addresses the issue of parties' reluctance to pay mediator fees and is expected to foster a more amicable dispute resolution process.
Recognizing the challenges faced when parties hesitate due to mediator fees, the ministry has taken a proactive stance to promote fair resolution mechanisms. The initiative is part of a broader effort to enhance consumer protection and simplify the dispute settlement process. The ministry will allocate mediator fees from the Consumer Welfare Fund, a dedicated corpus supported by contributions from both the State and the Department of Consumer Affairs.
As outlined by the consumer affairs ministry, the compensation structure will vary based on the complexity and success of mediation outcomes. In successful mediation cases, mediators handling district commissions will receive approximately Rs 3,000, while their counterparts in state commissions will be compensated with Rs 5,000. For cases requiring mediation in district commissions, a fee of about Rs 600 per case, capped at a maximum of Rs 1,800, will be provided, irrespective of the number of connected cases. Similarly, mediation cases in state commissions will be remunerated with about Rs 1,000 per case, subject to a maximum of Rs 3,000.
In situations where mediation efforts do not yield resolution, the ministry acknowledges the mediator's role and offers compensation to them. A sum of Rs 500 and Rs 1,000 per case will be granted to mediators handling district and state commissions, respectively, in recognition of their efforts even in cases of failed mediation.
The funds for this initiative will be drawn from the accrued interest on the Consumer Welfare (Corpus) Fund, which demonstrates the government's commitment to promoting accessible and efficient dispute resolution for consumers across the country.
The amendment to the Consumer Welfare Fund Guidelines includes provisions to facilitate the reimbursement of legal expenses incurred by complainants in a consumer dispute after its final adjudication. The new compensation scheme aligns with the provisions of the Consumer Protection Act, 2019, which aims to establish a structured framework for consumer dispute resolution.
Presently, there are 1387 mediators empanelled in District Consumer Commissions and 247 in State Commissions throughout India. The enhanced mediator compensation scheme is expected to further encourage the use of mediation as an effective means of resolving consumer complaints, providing timely justice and reinforcing consumer rights protection.
Picture Source :
