The Act under which consumer courts have been established is the Consumer Protection Act.
The Consumer Protection Act is a legislation enacted by the Government of India in 1986 to protect the rights and interests of consumers. Under this act, consumer courts have been established at various levels to provide a forum for consumers to seek redressal for their grievances against unfair trade practices, defective products, and deficient services.
The consumer courts are known as Consumer Dispute Redressal Forums and they operate at three levels:
1. District Consumer Dispute Redressal Forum: This is the lowest level of consumer court and it is established in each district. It handles complaints involving amounts up to Rs. 20 lakh.
2. State Consumer Dispute Redressal Commission: This is the second level of consumer court and it is established in each state. It handles complaints involving amounts between Rs. 20 lakh and Rs. 1 crore.
3. National Consumer Dispute Redressal Commission: This is the highest level of consumer court and it is established at the national level. It handles complaints involving amounts exceeding Rs. 1 crore.
These consumer courts have the power to hear complaints, issue orders for compensation, and take necessary actions to protect the rights of consumers. They provide a quick and cost-effective means for consumers to seek justice and hold businesses accountable for their actions.
In conclusion, the Consumer Protection Act is the act under which consumer courts have been established in India. These consumer courts provide a platform for consumers to seek redressal for their grievances and ensure that their rights are protected.