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CS Professional · Banking and Insurance - Laws and Practice · Consumer Protection

A dispute against a lender is pending before a State Commission, where a borrower alleges unfair trade practices. Which statement about the Central Consumer Protection Authority's powers is correct under the Act?

The Authority can both file complaints before the District, State or National Commission and intervene in pending proceedings concerning violations of consumer rights or unfair trade practices. It cannot replace the Commission as decider, and it does not act merely through the advisory Central Council.

  1. AIt may intervene in the proceedings but may not file complaints itself
  2. BIt may file complaints before a District, State or National Commission and may also intervene in proceedings before themCorrect
  3. CIt may only advise the Commission through the Central Council
  4. DIt may take over the case and decide it in place of the State Commission

Explanation

Section 18(2)(b) lets the Authority file complaints before the District, State or National Commission, and section 18(2)(c) lets it intervene in proceedings there. It does not adjudicate in place of a Commission, and it acts directly, not through the Council.

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