Govt to pay fee ranging Rs 3k-5k to empanelled mediators in consumer cases

Empanelled mediators in consumer cases will now be paid a fee in the range of Rs 3,000-5,000 by the government which will lead to the settlement of more complaints through mediation cells, the Consumer Affairs Ministry said on Friday.

The ministry took a decision in this regard after a series of consultations with various stakeholders, and during regional workshops held in northeastern and northern states, an official release said.

It was observed that a substantial number of cases are not resolved through mediation because the parties in the disputes are observed to be reluctant in paying the fee of the mediator.

Based on the suggestions, the ministry has "decided to pay the fees of the empanelled mediator from the Consumer Welfare Fund," the release said.

According to the consumer affairs ministry release, the amount of dispute, or the fee of the mediator as set by the President of the Commission, or the fees prescribed below, whichever is least, will be paid to the mediator.

A fee of about Rs 3,000 will be paid to a mediator for successful mediation in district commissions, while Rs 5,000 in the state commissions.

That apart, about Rs 600 per case subject to a maximum of Rs 1,800 regardless of the number of connected cases will be paid to mediate in the district commission.

About Rs 1,000 per case subject to a maximum of Rs 3,000 regardless of the number of connected cases will be paid to mediate in state commissions. In case of failed mediation, about Rs 500 and 1,000 per case will be paid to a mediator in district and state commissions, respectively.

The fee will be paid from the interest accrued on the Consumer Welfare (Corpus) Fund, established with co-contribution from the State and the Department of Consumer Affairs.

To effect these changes, the ministry has amended the Consumer Welfare Fund Guidelines and included Section IV Purpose (m) on reimbursement of legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication.

A provision of settlement of consumer disputes through Mediation under Chapter V of the Consumer Protection Act, 2019 for the speedy, hassle-free, and, inexpensive redressal of consumer complaints.

Currently, there are 247 mediators empanelled in the State Commissions and 1387 in the District Consumer Commissions all over India.