NEW DELHI: India’s consumer dispute redressal system is straining under rising caseloads, mounting vacancies and patchy infrastructure, even as a modern legal framework promises faster, more accessible justice, according to the Consumer Justice Report 2026.
The report, released by Tata Trusts and Vidhi Centre for Legal Policy under the India Justice Report initiative, finds the system increasingly unable to keep pace with demand. Pendency has risen about 20% over the past five years, with more than one-third of cases at state commissions pending for over three years, far beyond the statutory disposal window of three to five months.
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At the core of the backlog is a shortage of leadership and staff.
As of 2025, around half of state commissions and nearly one-third of district commissions lack a sitting president, while about 40% of member positions are vacant. Administrative staff shortages, averaging about 20%, have further slowed case processing.
The scale of the problem is reflected in government data. The consumer affairs ministry told Lok Sabha in February that more than 574,000 cases are pending across consumer commissions, including 16,382 before the National Consumer Disputes Redressal Commission (NCDRC), 121,922 before state commissions and 436,029 at the district level.
Access gaps persist alongside delays. At least one in 10 districts does not have a consumer commission, forcing consumers, especially those with smaller claims, to turn to civil courts or abandon cases, undermining the system’s low-cost, accessible design.
Reforms introduced under the Consumer Protection Act, 2019, such as mediation, digital filing and expanded jurisdiction, remain unevenly implemented. Mediation, envisaged as a faster and less adversarial route, is barely used, with minimal referrals indicating a gap between legislative intent and execution.
Funding has risen but inconsistently translated into capacity. Allocations to state commissions increased by over 50% between 2021-22 and 2024-25, but utilization averaged about 85%, with some states cutting budgets despite rising caseloads and vacancies.
Infrastructure rollout has also lagged. A parliamentary panel in July 2025 flagged delays under CONFONET, the IT backbone for consumer courts, noting that only six of 45 planned video-conferencing systems had been installed by March 2024, all at the NCDRC.
Meanwhile, demand pressures continue to build. Complaints are rising sharply, particularly in insurance, housing and banking, which together account for nearly half of all cases. Filings have grown faster than disposal rates, widening the gap.
Legal experts warn the impact extends beyond individual grievances.
“Delays in consumer dispute resolution are not just a legal concern but also an economic one. When cases remain pending for years, it affects contract enforcement, business confidence and overall market efficiency,” said Manish Kr. Shubhay, partner at The Precept-Law Offices.
Performance varies widely across states. Andhra Pradesh, Madhya Pradesh and Rajasthan rank among the top-performing large states, while others lag due to high vacancies, weak budget utilisation and low case clearance rates.
The report links these gaps to broader economic risks, warning that delays can lock up capital, weaken market discipline and discourage reinvestment as India’s consumer economy expands.
It argues that legislative reform alone is insufficient without time-bound appointments, adequate staffing, stronger infrastructure, wider use of mediation and better data transparency.
Based on RTI responses, parliamentary data and official records, the study concludes that institutional capacity continues to lag the growing scale of consumer disputes.
Recent complaint trends underscore the pressure points. E-commerce companies have emerged as the largest contributors to refund disputes, accounting for over ₹36 crore, nearly 70% of the ₹52 crore facilitated through the National Consumer Helpline (NCH) in the nine months through 31 January 2026. The sector accounted for 47,743 of the 79,521 refund-related complaints handled during the period.