Govt decides to set up Nepal’s first consumer court

By Republica
Published: February 05, 2025 10:30 AM

KATHMANDU, Feb 5: The government has decided to set up a consumer court envisioned by the Consumer Protection Act endorsed six years ago.

A Cabinet meeting held on Monday decided to set up the first judicial structure of its type in the country. In the first phase, the government talks about establishing the consumer court that will look after the consumer-related issues of the Kathmandu Valley, said Minister for Communications and Information Technology Minister Prithvi Subba Gurung.  

Endorsing the recommendation of the Judicial Council on October 28, 2024, the government has decided to set up a consumer court. The council recommended Judge Ram Prasad Sharma of Kathmandu District Court to chair the consumer court, and under-secretary Gehendra Raj Regmi was nominated as a member.

A consumer court is a special-purpose court which primarily deals with consumer-related disputes, conflicts and grievances. It is one of the most aspired judicial bodies to bring unscrupulous traders under a legal framework within a fast-track system.

The proposed consumer court will oversee three types of cases related to violation of consumers’ rights. The court will be liable to give its verdict on cases related to compensation, offenses defined by the Consumer Protection Act and the government specific issues related to consumer protection.

Time and again, general people have been hard hit by the malpractices in the market that include food adulteration, unfair pricing of products, artificial shortages and poor services by the firms concerned.  In absence of the consumer court, consumers are compelled to either stay silent against the suffering they withstand or they have to undergo lengthy bureaucratic and legal procedures to get justice.

Jyoti Baniya, chairperson at the Forum for Protection of Consumer Rights Nepal, welcomed the government decision to set up the country’s first consumer court. “The government move will help ensure consumer rights defined by the Constitution,” Baniya told Republica.  

The government through announcement of budget for the fiscal year 2023/24 announced the formation of a consumer court in Kathmandu on a trial basis and allocated Rs 10 million for this purpose. 

Earlier, the government had stepped up efforts to establish a consumer court inside the premises of the Department of Drug Administration as a temporary arrangement. However, the government plan was put on hold after the Supreme Court ordered setting up a separate infrastructure for this purpose.