Saturday 18 May 2013

BIRTH OF CONSUMER PROTECTION ACT IN INDIA


  It is more then 30 years,We are working for welfare of consumers in India. Initially we tried to unite consumers. Raised voice in government and business circles where ever the consumers are not treated fairly. Because at that time there was no legislation for the welfare of consumers. We then concentrated at this. We formed a legal committee at Nagpur, Mr. Ghanshyamdas Mundhada was president of this committee. After several meetings, prepared a draft of consumer protection act. Later on this bill was introduced in the parliament, as a private member bill. Mr. Rambhau Mhlangi,Jansangh(MP) had introduced this bill. Height of this is that, and a rare example of Indian Politics, how political parties keep their political interests away, when it comes to the welfare of people. Rambhau Mhlangi, Jansangh, MP and Banatwala, Muslim League MP, both join hands and this resulted in this Private Member Bill in the interest of consumers. This bill contain signature of both as introducer and seconder. This bill could not see the light of day, because of sad demise of Mr. Mhlangi.

  Later on when Mr. Rajiv Gandhi joined politics. He was on visit to wardha, spent some time at Nagpur. Mr. Vilas Muttemwar Congress MP, accompanied Raja Bhau Pophali, ex President Akhil Bhartiya Grahak Panchayat to Mr. Gandhi. Mr. Pophali discussed interests of Consumer, and that the efforts of Grahak Panchayat, for getting a legislation. Mr. Gandhi assured, after  returning asked Mr, Hari Kishan Lal Bhagat, the then minister for food and civil supplies. The bill was introduced as a government bill and Consumer Protection Act 1986 came in existence.

Wednesday 15 May 2013

CONSUMER FORCED TO COUGH MONEY ON PETROLEUM - COURTESY GOVT.

It is true, that consumers are forced to cough unreasonable money for Petroleum products, courtesy government. It has become very common every now and then, that the prices of Petrol, Diesel and LPG are hiked, in the name of fluctuating rates of crude oil in the international market. It is true that crude rates are fluctuating. But it is not correct to say that out of this fluctuation only Government is forced to increase prices of petroleum products. 

 The move of the government is very calculated. They try to create an atmosphere in the media that because of rise in international crude price, they are scumming under the burden of subsidy. And increase in the prices in inevitable. Which is not true. In fact, they are making the consumers to cough out, whatever subsidy they pay on these products by imposing huge tax at different stages. This is all gimmicky. At one hand government poses that they are taking care of the consumers and bearing the heavy burden of subsidy, they advertise it in media and through so called expert. They create an atmosphere, shows concern. At the other hand they take back entire money of subsidy, even more by way of heavy taxation from the consumers. In absence of pricing policy credentials of the government are doubtful. If they are really concerned for the consumers. They should immediately make and publish fair and transparent pricing policy for the petroleum products. 

 Several times Grahak Panchayat requested the government to absorb international hike in crude price by reducing heavy tax they have imposed on consumers. But since it is going to spoil their game of posing as pro consumer government. If the government is heavily burdened of the subsidy. Instead of authorizing the Oil Companies to decide prices of the petroleum products. Why they are not bringing transparency in the system. Why they are not declaring pricing policy.Why they are keeping it secret. 

 We have some data to show how petroleum prices works - 

Crude price in international market few days back US$ 93.75 per barrel 
 It comes to Rs. 5128.12 (93.75 X 54.70 rupees exchange rate) 
 1 barrel = 158.76 liter 
 Crude oil price per liter comes Rs.32.30 
 Refining cost per liter. Rs. 0.52 
 Capital cost to refinery Rs. 6.00 
 Cost of Transportation Rs. 6.00 
 Dealers Commission Rs. 1.05 
 Total Price of petrol/ liter comes Rs. 45.87 

Huge amount of tax levied by the government forces consumer to purchase petrol at Rs.63.09 in Delhi to Rs.71.22 in Nagpur. 

These taxes are levied by government in the name of Custom Duty, Excise Duty, Special Excise Duty, Education Cess, Sales Tax, State Cess and Octrai. 

 Elections of loksabha are due in 2014. Consumers of the country ask the political parties to clear their stand on the issue.