Consider the following statements about the redressal machinery under…

Consider the following statements about the redressal machinery under the Consumer Protection Act, 2019:

(A) A complaint where the value of goods paid as consideration is Rs 40 lakh is entertained by the District Commission.

(B) A complaint where the value of goods paid as consideration is Rs 1.6 crore is entertained by the National Commission.

(C) A party not satisfied with an order of the State Commission can appeal to the National Commission.

(D) A party not satisfied with an order of the District Commission can appeal to the National Commission.

Which of the statements given above are correct? Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A) and (C) only

(A) A complaint where the value of goods paid as consideration is Rs 40 lakh is entertained by the District Commission. — Correct. Rs 40 lakh does not exceed fifty lakh, so it is within the District limit.

(B) A complaint where the value of goods paid as consideration is Rs 1.6 crore is entertained by the National Commission. — Incorrect. Rs 1.6 crore is above fifty lakh but within two crore, so the State Commission hears it. The National Commission takes only complaints above two crore.

(C) A party not satisfied with an order of the State Commission can appeal to the National Commission. — Correct. The appeal goes to the National Commission within thirty days.

(D) A party not satisfied with an order of the District Commission can appeal to the National Commission. — Incorrect. An appeal against a District Commission order goes to the State Commission.

NCERT (2026-27 Edition): “Redressal Agencies Under The Consumer Protection Act For the redressal of consumer grievances, the Consumer Protection Act 2019 provides for setting up of a three-tier enforcement machinery at the District, State, and the National levels. As per the Consumer Protection Rules 2021, the jurisdiction of District Commission, State Commission and the National Commission is as follow:
1. District Commission: District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed fifty lakh rupees. …
If any of the parties are not satisfied by the order of District Commission can appeal against such order to the State Commission on the grounds of facts or law within a period of forty five days from the date of order.”

“2. State Commission: It is established by the respective state government and ordinarily function at the state capital. State Commission has a jurisdiction to entertain complaints where value of goods and services paid as consideration that exceeds rupees fifty lakh but does not exceed two crore. If any of the parties are not satisfied by the order of State Commission can appeal against such order to the National Commission within a period of thirty days of such order.”

“3. National Commission: The National Commission has territorial jurisdiction over the whole country. National Commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration exceeds two crores of rupees. If any of the parties are not satisfied by the order of National Commission can appeal against such order to the Supreme Court of India within a period of thirty days of such order.”