The formation of Nepal’s first consumer court has got entangled in a bureaucratic web.

After a judge and its members were appointed a month ago, the court was supposed to begin hearings by December. Officials say the process has been stuck between the industry and law ministries.

Baburam Adhikari, joint-secretary at the Ministry of Industry, Commerce and Supplies, said the law ministry was conducting an organisation and management (O&M) survey. This process of evaluating and analysing the set-up for institutionalising the court may take months.

Once the survey is concluded and the appointment process completed, the industry ministry will transfer the budget for its daily operation.

“I have heard that the law ministry is proceeding with the O&M survey,” said Adhikari. “I also heard that the Department of Drug Administration premises at Babarmahal will be provided for the court’s operation,” Adhikari added without confirming.

However, the law ministry has a different answer.

“We wrote to the industry ministry two weeks ago seeking the name of a consumer court member with extensive knowledge of the consumer market," said Komal Bahadur Khatri, spokesperson for the law ministry. “We also requested details on physical infrastructure preparedness and the deadline for the court’s operation.”

Khatri said they have yet to begin the O&M survey. “When the industry ministry replies to our queries, the law ministry will send a proposal to the Cabinet seeking its approval in principle to begin the court’s operation,” he added.

Adhikari had no information about the law ministry’s letter but said: “Hopefully, we expect the consumer court to operate by mid-July.”

In October, the Judicial 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.

Earlier, it was said that a consumer court would be established at the Department of Drug Administration as a temporary arrangement in the property belonging to the industry ministry.

However, the Supreme Court has ordered the setting up of separate infrastructure.

A consumer court was supposed to begin hearing cases from Kathmandu, Lalitpur, and Bhaktapur.

However, the respective district courts have the mandate to handle consumer complaints until the specific courts are established in other provinces.

The industry ministry said a consumer court has been established only inside the Kathmandu Valley due to budget constraints. The Supreme Court, however, has ordered consumer courts be established outside the Valley as well.

Consumer courts are said to ensure fast, faceless, paperless, and proper compensation for the victims in consumer cases.

“Once the consumer court comes into operation, the consumer with the bill of goods and services can file a case in the dedicated court,” Jyoti Baniya, chairperson of the Forum for Protection of Consumer Rights Nepal, told the Post in a recent interview. “The consumer will not have to wait for a hearing date as the process will move swiftly.”

He said a similar case might take 2–3 years or more in regular courts.

Consumer issues have been growing, especially after Nepal adopted digitisation, particularly in e-commerce. The Consumer Protection Act 2018 requires the government to establish a consumer court.

Based on this provision, the Ministry of Industry, Commerce, and Supplies submitted a legislation draft to the law ministry in September 2019, which then forwarded it to the Judicial Council.

As the process was delayed, the Supreme Court, on February 20, 2022, ordered the government to establish consumer courts in all provinces to protect buyers’ interests amid repeated cases of unfair market practices.

A division bench of justices Bam Kumar Shrestha and Nahakul Subedi issued the order after the Forum for Protection of Consumer Rights Nepal moved the court.

Industry ministry officials, however, said setting up a consumer court in a province would be impractical, as people would still have to travel long distances to present their cases.

After piloting in Kathmandu, the ministry will work to establish consumer courts in each district.

The process, however, has been delayed due to frequent government changes.

Last fiscal year’s budget announced the formation of a consumer court in Kathmandu on a trial basis and allocated Rs10 million.

A consumer court primarily deals with consumer-related disputes, conflicts, and grievances. The court holds hearings to adjudicate these issues.

The public has long been demanding consumer courts to bring unscrupulous traders under a legal framework within a fast-track system.

The presence of consumer courts is expected to have a big impact on controlling food adulteration, artificial shortages, and price manipulation. Consumers are facing difficulties accessing water, energy, telecoms, and financial services even after paying for them.

Besides, as Nepal’s e-commerce sector grows, consumer fraud has become more prevalent.