NEW DELHI: India’s consumer dispute redressal system is strained under a growing caseload, rising vacancies and patchy infrastructure, even as a modern legal framework promises faster and more accessible justice, says the Consumer Justice Report 2026.
The India Justice Report, released by the Tata Trusts and the Vidhi Center for Legal Policy, finds that the system is increasingly unable to keep up with demand. Addiction has risen by about 20% over the past five years, with more than one-third of cases pending in state boards for more than three years, well beyond the statutory limit of three to five months.
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At the heart of the backlog is a lack of leadership and staff.
As of 2025, about half of state commissions and nearly one-third of county commissions lack an incumbent president, while about 40% of membership positions are vacant. A shortage of administrative staff, averaging about 20%, further slowed case processing.
The extent of the problem is reflected in government figures. The Ministry of Consumer Affairs told the Lok Sabha in February that more than 574,000 cases were 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.
Along with delays, access gaps persist. 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 drop cases, undermining the system’s low-cost and accessible design.
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Reforms introduced under the Consumer Protection Act 2019, such as mediation, digital filing and expanded jurisdiction, remain unevenly implemented. Considered a faster and less adversarial route, mediation is hardly used, with the minimal number of requests suggesting a gap between legislative intent and implementation.
Funding has increased but has not been consistently reflected in capacity. Allocations to state commissions increased by more than 50% between 2021–22 and 2024–25, but take-up averaged about 85%, with some states cutting budgets despite rising caseloads and vacancies.
Infrastructure deployment has also been delayed. A parliamentary panel in July 2025 highlighted delays under CONFONET, the IT backbone for consumer courts, noting that by March 2024 only six of the planned 45 video conferencing systems had been installed, all at NCDRC.
Meanwhile, demand pressures continue to mount. Complaints are increasing sharply, especially in the insurance, housing and banking industries, which together account for almost half of all cases. Filings grew faster than disposal rates, widening the gap.
Legal experts warn that the impact goes beyond individual complaints.
“Delays in resolving consumer disputes are not only a legal problem but also an economic one. When cases remain unresolved for years, it affects contract enforceability, business confidence and overall market efficiency,” said Manish Kr. Shubhay, Partner at The Precept-Law Offices.
Performance varies greatly from state to state. Andhra Pradesh, Madhya Pradesh and Rajasthan are among the top performing large states, while others lag behind due to high vacancies, poor budget utilization and low caseload.
The report links these gaps to broader economic risks, warning that delays could lock up capital, weaken market discipline and discourage reinvestment as India’s consumer economy expands.
They argue that legislative reform alone is insufficient without time-limited appointments, adequate staffing, stronger infrastructure, wider use of mediation and better data transparency.
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Based on RTI responses, parliamentary data and official records, the study concludes that institutional capacity continues to lag behind the growing scale of consumer disputes.
Recent complaint trends underscore the pressure points. E-commerce companies have emerged as the biggest contributors to refund disputes, which is more than more ₹36 million, nearly 70% of it ₹During the nine months until January 31, 2026, 52 million crowns were provided through the National Consumer Helpline (NCH). The sector accounted for 47,743 of the 79,521 refund-related complaints handled during the period.
The Consumer Justice Report is a first-of-its-kind assessment of the institutional capacity of India’s consumer dispute redressal system, led by the India Justice Report and supported by a number of civil society and research organisations.
