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Banking, NBFCs, gas supply disputes in Delhi to be taken up by Lok Adalats as L-G Saxena gives nod

Banking, NBFCs, gas supply disputes in Delhi to be taken up by Lok Adalats as L-G Saxena gives nod

Indian Express3 days ago
Delhi Lieutenant Governor VK Saxena on Tuesday approved the inclusion of banking services, non-banking financial companies (NBFCs), and gas supply services under the category of 'Public Utility Services' in the national capital, aimed at providing faster resolution of service-related disputes.
The move will enable disputes in these sectors to be taken up by Permanent Lok Adalats (PLAs), which serves as an alternative judicial mechanism for conciliation and adjudication of cases related to public utilities. It is expected to reduce the burden on regular courts and provide accessible, low-cost, and time-bound legal remedies.
The proposal for inclusion was sent by the Law Department of the Delhi Government, which noted a sharp increase in grievances related to loans, recovery, billing, and deficiencies in service in both banking and gas supply sectors.
The department argued that a large number of disputes related to loans, financial recovery, savings and investments, service deficiencies, and billing issues in banking and non-banking financial sectors could be effectively and expeditiously resolved outside conventional courts if these three services were notified as public utility services.
It pointed out that the three services fit within the broader framework of public utility services due to their essential and public-facing nature.
Currently, three Permanent Lok Adalats are functional in Delhi to address disputes related to electricity supply involving private distribution companies. The Delhi State Legal Services Authority (DSLSA) is also in the process of establishing another PLA to handle notified services such as transport, telecom, postal, water supply, public sanitation, health, and insurance.
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