Consumer in India

Rights
• Right to Safety
Means right to be protected against the marketing of goods and services, which are hazardous to life and
property. The purchased goods and services availed of should not only meet their immediate needs, but also
fulfil long term interests.
• Before purchasing, consumers should insist on the quality of the products as well as on the guarantee of the
products and services. They should preferably purchase quality marked products such as ISI,AGMARK, etc

• Right to be Informed
Means right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to
protect the consumer against unfair trade practices.
• Consumer should insist on getting all the information about the product or service before making a choice or
a decision. This will enable him to act wisely and responsibly and also enable him to desist from falling prey
to high pressure selling techniques.

• Right to Choose
Means right to be assured, wherever possible of access to variety of goods and services at competitive price.
In case of monopolies, it means right to be assured of satisfactory quality and service at a fair price. It also
includes right to basic goods and services. This is because unrestricted right of the minority to choose can
mean a denial for the majority of its fair share. This right can be better exercised in a competitive market
where a variety of goods are available at competitive prices
• Right to be Heard
Means that consumer's interests will receive due consideration at appropriate forums. It also
includes right to be represented in various forums formed to consider the consumer's welfare.
• The Consumers should form non-political and non-commercial consumer organizations which can
be given representation in various committees formed by the Government and other bodies in
matters relating to consumers.

• Right to Seek redressal

Means right to seek redressal against unfair trade practices or unscrupulous exploitation of
consumers. It also includes right to fair settlement of the genuine grievances of the consumer.
• Consumers must make complaint for their genuine grievances.Many a times their complaint may
be of small value but its impact on the society as a whole may be very large. They can also take the
help of consumer organisations in seeking redressal of their grievances.

• Right to Consumer Education

Means the right to acquire the knowledge and skill to be an informed consumer throughout
life.Ignorance of consumers, particularly of rural consumers, is mainly responsible for their
exploitation. They should know their rights and must exercise them. Only then real consumer
protection can be achieved with success.
 Who is a consumer

"consumer" is defined as a person who "buys any goods" and

"hires or avails of any service" for consideration but does not
include a person who obtains goods for resale or goods or service
for any commercial purpose. The Act seeks to widen the scope of
this definition. Thus, a consumer will now mean any person who
"buys any goods" and "hires any services" which shall include
both online and offline transactions through electronic means,
teleshopping, direct selling or multi-level marketing1.
 Responsibilities
• A consumer should keep in mind thefollowing
responsibilities whilepurchasing, using and
consuminggoods and services
• .(i)Be aware about various goodsand services
available in themarket so that an intelligent
andwise choice can be made
• ii)Buy only standardised goods asthey provide
quality assurance.Thus, look for ISI mark
onelectrical goods, FPO mark on foodproducts,
Hallmark on jewelry
• iii)Learn about the risks associatedwith products and services,
followmanufacturer’s instructions anduse the products safely
• iv)Read labels carefully so as to haveinformation about prices,
netweight, manufacturing and expirydates, etc.
• (v)Assert yourself to ensure that youget a fair deal.
• (vi)Be honest in your dealings.Choose only from legal goods
andservices and discourageunscrupulous practices likeblack-
marketing, hoarding etc
• vii)Ask for a cash memo on purchaseof goods or services. This
wouldserve as a proof of the purchasemade
• viii)File a complaint in an appropriateconsumer forum in case of
a
• shortcoming in the quality of goodspurchased
or services availed. Donot fail to take an action
even whenthe amount involved is small.
• (ix)Form consumer societies whichwould play
an active part ineducating consumers
andsafeguarding their interests
• x)Respect the environment. Avoidwaste,
littering and contributingto pollutio
 Who can file a complaint?:
• Who can file a complaint?: A complaint before the
forum can be made by:
• (i)Any consumer;
• (ii)Any registered consumers ’association;(iii)The
Central Government or any State Government;
• (iv)One or more consumers, on behalf of numerous
consumers having the same interest; and
• (v)A legal heir or representative of a deceased
consumer
 Ways to protect consumers
• Self Regulation by Business:Enlightened
business firms realisethat it is in their long-
term interest toserve the customers well.
Sociallyresponsible firms follow
ethicalstandards and practices in dealingwith
their customers. Many firms haveset up their
customer service andgrievance cells to redress
the problemsand grievances of their
consumers
• Business Associations: Theassociations of
trade, commerce and business like Federation
of IndianChambers of Commerce of India
(FICCI)and Confederation of Indian
Industries(CII) have laid down their code
ofconduct which lay down for theirmembers
the guidelines in theirdealings with the
customers.
• 3. Consumer Awareness: Consumer Awareness:
Consumer Awareness: Consumer Awareness:
Consumer Awareness: A consumer,who is well
informed about his rightsand the reliefs available
to him, wouldbe in a position to raise his
voiceagainst any unfair trade practices
orunscrupulous exploitation. In additionto this,
an understanding of hisresponsibilities would
also enable aconsumer to safeguard his interests
• 4. Consumer Organisations:Consumer
Organisations:Consumer Organisations:Consumer
Organisations:Consumer Organisations:Consumer
organisations play animportant role in educating
consumersabout their rights and
providingprotection to them. These
organisationscan force business firms to
avoidmalpractices and exploitation ofconsumers
• 5. Government: The government canprotect
the interests of the consumersby enacting
various legislations. Thelegal framework in
India encompassesvarious legislations which
provideprotection to consumers. The
mostimportant of these regulations is
theConsumer Protection Act, 1986. The
• Act provides for a three-tier machineryat the
district, state and national levelsfor redressal
of consumer grievances.The redressal
mechanism under Three-tier machinery
 CONSUMERISM
• Consumerism is defined as social force designed to protect consumer
interests in the marketplace by organising consumer pressures on
business. Consumerism is a protest of consumers against unfair business
practices and business injustices.
• It aims to remove those injustices, and eliminate those unfair marketing
practices, e.g., misbranding, spurious products, unsafe products, planned
obsolescence, adulteration, fictitious pricing, price collusion, deceptive
packaging, false and misleading advertisements, defective warranties,
hoarding, profiteering, black marketing, short weights and measures, etc.”
• Consumer organisations could provide united and organised efforts to
fight against unfair marketing practices and to secure consumer
protection. The balance of power in the marketplace usually lies with the
seller. Consumerism is society’s attempt to redress this imbalance in the
exchange transactions between sellers and buyers.
• According to P. Drucker, consumerism challenges
four important premises of the marketing concept-
(1) It is assumed that consumers know their needs.
(2) It is assumed that business really cares about
those needs and knows exactly how to find about
them. (3) It is assumed that business does provide
useful information that precisely matches product
to needs. (4) It is presumed that products and
services really fulfil customer expectations as well
as business promises.
 Reasons for consumer protection
• 1. Some products, some of which are of strategic
importance, are short in supply. Producers exploit the
consumer as in the situation of excess demand, supplier and
not the consumer becomes the king in the market. Trading
in such products gives rise to black market and hoarding.
• 2. In certain products, even if there is no actual shortage,
markets due to oligopoly (market with few sellers) and
monopoly (market with one seller), create an artificial
demand by restricting the output so that they are able to
push up the price. Under such conditions, consumers often
get products paying a high price for a low quality.
• 3. Ignorant and uneducated consumers. Lack of education has
spilled its ill effect on every sphere of the society, including in
consumption. Consumers are ignorant and uneducated about the
market conditions and the availability of products. In such
situations, the marketer has a tendency to exploit the consumer.
The situation is really unfortunate when the so called educated
people turn out to be ignorant consumers. In India, there are
many such cases.
• 4. People are very scared of the legal procedures. People are
apprehensive about Police and Courts. Many consumers, to avoid
legal action, will not exercise their rights. People are unaware of
the simple procedures under the Consumer Protection Act.
• 5. Last but not the least, India is a country of low and middle-class
income people. Most of them struggle for their “bread and butter” and
consider raising voice, against injustice towards them from the market or
a Government institution, a time wasting activity, This needs an
attitudinal change, and consumerism can go a long way in achieving such
attitudinal change.
• All these points emphasise one aspect. There is a real need in our
country to have a good and effective “Consumer Protection.” Such a
protection will go a long way to build a healthy economy. A strong
market is made up by strong supply and demand side. Consumer
Protection, which is the core of consumerism alone, can give necessary
strength to the demand side in the market, which is generally biased in
favour of the supplier. To strike a balance in the buyer-seller relation,
“consumer protection” plays an important role.
• to have an effective consumer protection, a practical response on
the part of three parties, viz., the business, the Government and
the consumer, is essential. Firstly, the business, comprising the
producers and all the elements of the distribution channels, all
have to give due importance and regard to consumer rights.
• The producer has an inescapable responsibility to ensure efficiency
in production and quality of output. Producers are always tempted
to charge “exploitative price” that should be resisted, especially
when the product is of high importance and relatively low supply.
In other words, if it is a seller’s market, a socially responsible
producer should see that product reaches the consumer within a
reasonable time and at a reasonable price, i.e., products should
not be hoarded and black marketed.
• secondly, the Government has to come to the rescue of
the “helpless” consumer by preventing him from being
misled, duped, cheated and exploited. The motive of
private gain tempts business to maximise income by
socially undesirable trade practices. These are calls for
Government intervention.
• Statutory action, to protect the interests of consumers,
has become quite common everywhere in the world. The
most common example of Government’s intervention to
protect consumer’s interest is the policy of price cycling
in the case of house rent, kerosene, etc.
• thirdly, consumers themselves should accept
consumerism as a means of asserting and
enjoying their rights. This brings us to the next
important issue in consumerism —
“Consumer’s Rights.”
 Consumer protection and consumerism in
INDIA
• Redressed agencies
• Three Tier Consumer Grievances Machinery under
the Consumer Protection Act!
• 1. District Forum:
• District forum consists of a president and two other
members. The president can be a retired or working
judge of District Court. They are appointed by state
government. The complaints for goods or services
worth Rs 20 lakhs or less can be filed in this agency.
• (a) a person who is, or has been, or is qualified to be a District Judge, who shall be its
President;
• (b) two other members, one of whom shall be a woman, who shall have the following
qualifications, namely:—
• (i) be not less than thirty-five years of age,
• (ii) possess a bachelor's degree from a recognised university,
• (iii) be persons of ability, integrity and standing, and have adequate knowledge and
experience of at least ten years in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration:
• Provided that a person shall be disqualified for appointment as a member if he—
• (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of
the state Government involves moral turpitude; or
• (b) is an undischarged insolvent; or
• (c) is of unsound mind and stands so declared by a competent court; or
• (d) has been removed or dismissed from the service of the Government or a body corporate
owned or controlled by the Government; or
• (e) has, in the opinion of the state Government, such financial or other interest as is likely to
affect prejudicially the discharge by him of his functions as a member; or
• (f) has such other disqualifications as may be prescribed by the State Government;
• The agency sends the goods for testing in laboratory if required and gives
decisions on the basis of facts and laboratory report. If the aggrieved party is
not satisfied by the jurisdiction of the district forum then they can file an
appeal against the judgment in State Commission within 30 days by depositing
Rs 25000 or 50% of the penalty amount whichever is less.
• 2. State Commission:
• It consists of a president and two other members. The president must be a
retired or working judge of high court. They all are appointed by state
government. The complaints for the goods worth more than Rs 20 lakhs and
less than Rs 1 crore can be filed in State Commission on receiving complaint
the State commission contacts the party against whom the complaint is filed
and sends the goods for testing in laboratory if required.
• In case the aggrieved party is not satisfied with the judgment then they can
file an appeal in National Commission within 30 days by depositing Rs 3500 or
50% of penalty amount whichever is less.
• Composition of the State Commission. — (1) Each State Com­mission shall consist of—
• (a) a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President:
• Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court;
• (b) not less than two, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall
have the following qualifications, namely:—
• (i) be not less than thirty-five years of age;
• (ii) possess a bachelor's degree from a recognised university; and
• (iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems
relating to economics, law, commerce, accountancy, industry, public affairs or administration:
• Provided that not more than fifty per cent. of the members shall be from amongst persons having a judicial background.
• Explanation. — For the purposes of this clause, the expression "persons having judicial background'' shall mean persons having knowledge and
experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level:
• Provided further that a person shall be disqualified for appointment as a member if he—
• (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the State Government, involves moral
turpitude; or
• (b) is an undischarged insolvent; or
• (c) is of unsound mind and stands so declared by a competent
court; or
• (d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or
• (e) has, in the opinion of the State Government, such financial or other interest, as is likely to affect prejudicially the discharge by him of his
functions as a member; or
• (f) has such other disqualifications as may be prescribed by the State Government.
• (1A)Every appointment under sub-section (1) shall be made by the State Government on the recommendation of a Selection Committee
consisting of the following members, namely:—
• (i) President of the State Commission -- Chairman;
• (ii) Secretary of the Law Department of the State -- Member;
• (iii) Secretary incharge of the Department dealing
• with Consumer Affairs in the State -- Member:
• 3. National Commission:
• The national commission consists of a president and four
members one of whom shall be a woman. They are
appointed by Central Government. The complaint can be
filed in National Commission if the value of goods exceeds
Rs 1 crore. On receiving the complaint the National
Commission informs the party against whom complaint is
filed and sends the goods for testing if required and gives
judgment?
• If aggrieved party is not satisfied with the judgment then
they can file a complaint in Supreme Court within 30 days.
• Composition of the National Commission.—(1) The National Commission shall consist of—
• (a) a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President;
• Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India;
• (b) not less than four, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall have
the following qualifications, namely:—
• (i) be not less than thirty-five years of age;
• (ii) possess a bachelor's degree from a recognised university; and
• (iii) be persons of ability, integrity and standing and have adequate knowledge and experience of at least ten years in dealing with problems
relating to economics, law, commerce, accountancy, industry, public affairs or administration:
• Provided that not more than fifty per cent. of the members shall be from amongst the persons having a judicial background.
• Explanation. — For the purposes of this clause, the expression "persons having judicial background'' shall mean persons having knowledge and
experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level:
• Provided further that a person shall be disqualified for appointment if he—
• (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude;
or
• (b) is an undischarged insolvent; or
• (c) is of unsound mind and stands so declared by a competent court; or
• (d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or
• (e) has in the opinion of the Central Government such financial or other interest as is likely to affect prejudicially the discharge by him of his
functions as a member; or
• (f) has such other disqualifications as may be prescribed by the Central Government :
• Provided also that every appointment under this clause shall be made by the Central Government on the recommendation of a selection
committee consisting of the following, namely:—
• (a) a person who is a Judge of the Supreme Court, — Chairman;
• to be nominated by the Chief Justice of India
• (b) the Secretary in the Department of Legal Affairs — Member;
• in the Government of India
• (c) Secretary of the Department dealing with consumer — Member.;
• affairs in the Government of India
Basis District State Commission National Commission

Compositio It consists of a It consists of a president and two It consists of a president and four
n president and two other other members. other members.
members.
Who can be A working or retired A working or retired judge of High A working or retired judge of
a President judge of District Court. Court. Supreme Court.

Appointmen The president is
t of appointed by the state
President government on the
recommendation of the
selection committee.
The president is appointed by the The president is appointed by the
state government after central government after
consultation with the chief justice consultation with the chief justice
of the High Court. of India,
Jurisdiction In 1986, it had In 1986, it had jurisdiction to In 1986, it had jurisdiction to
jurisdiction to entertain entertain complaints when the entertain complaints where the
complaints where the value of goods or services value of goods or services
value of goods or exceeds Rs 5,00,000 and does exceeds Rs 20 lakhs but now the
services does not not exceed Rs 20,00,000 but now limit is raised and it entertains
exceed Rs 5, 00,000 it is raised to more than Rs the complaints of goods or
but now the limit is 20,00,000 and up to Rs1 crore. services where the value
raised to 20 lakhs. exceeds Rs 1 crore.

Appeal Any person who is Any person who is aggrieved by Any person who is aggrieved by
against aggrieved by the order the order of State Commission the order of the National
orders of District Forum can can appeal against such order to Commission can appeal against
appeal against such National Commission within 30 such order to Supreme Court
order to State days and by depositing Rs 35000 within 30 days and by depositing
Commission within 30 or 50% of penalty amount 50% of penalty amount but only
days and by depositing whichever is less. cases where value of goods or
Rs 25000 or 50% of the services exceeds Rs 1 crore can
penalty amount file appeal in supreme court
whichever is less.
 Consumer comlaints
• The consumer to whom goods are sold or
delivered
• ANY recognized consumer association
• One or more consumers
• Central or state government
 Remedial action
• a) Removal of Defects:
• If after proper testing the product proves to be
defective, then the ‘remove its defects’ order
can be passed by the authority concerned.
• b) Replacement of Goods:
• Orders can be passed to replace the defective
product by a new non-defective product of the
same type.
• (c) Refund of Price:Orders can be passed to
refund the price paid by the complainant for
the product.
• (d) Award of Compensation:
• If because of the negligence of the seller a
consumer suffers physical or any other loss,
then compensation for that loss can be
demanded for.
• (e) Removal of Deficiency in Service:
• If there is any deficiency in delivery of service, then orders can be
passed to remove that deficiency. For instance, if an insurance
company makes unnecessary delay in giving final touch to the
claim, then under this Act orders can be passed to immediately
finalise the claim.
• (f) Discontinuance of Unfair/Restrictive Trade Practice:
• If a complaint is filed against unfair/restrictive trade practice, then
under the Act that practice can be banned with immediate effect.
For instance, if a gas company makes it compulsory for a
consumer to buy gas stove with the gas connection, then this type
of restrictive trade practice can be checked with immediate effect.
• (g) Stopping the Sale of Hazardous Goods:
• Products which can prove hazardous for life, their
sale can be stopped.
• (h) Withdrawal of Hazardous Goods from the
Market:
• On seeing the serious adverse effects of hazardous
goods on the consumers, such goods can be
withdrawn from the market. The objective of doing
so that such products should not be offered for
sale.
• (i) Payment of Adequate Cost:
• n the end, there is a provision in this Act that
the trader should pay adequate cost to the
victim concerned.
penalities
 Voluntary organization
• Voluntary agencies have been playing an important and significant role in the
rural areas of India. The voluntary action covers a wide range of activities such as
charity, welfare, relief ' and rehabilitation, provision of services, socio-economic
development of rural poor, human , resource development etc. Rural societies,
such as in India, need a steady and continuous help and support from different
sources in order to transform the rural communities from a state of abject
poverty I to a reasonable level of development. Panchayati Raj Institution is an
institutional : expression of participation through formal involvement of people
in.the developmental 1 process. There would be many who would be outside
this formal structures and yet would participate in or activate a developmental
project. Thus the efforts of the formal agencies / and voluntary organisations,
which are outside the formal structure, should be judiciously merged so that the
ultimate goal of rapid rural development would become a reality. The 1 intensity,
motivation, and direction of the efforts of the voluntary agencies, however, need
further analysis. We have already explained the role of Panchayati Raj
Institutions in I transforming the rural areas. In this lesson, the concept of
voluntary organisations, the motivation, methods adopted, the role, relations
with government etc
• The term "voluntarism" is derived from the Latin word
'Voluntas' which means will. The will assumes various
forms of impulses, passions, appetites or desires. It is
the will that may produce some of the social evils, of
which the unfortunate sections of the society are the
victims. That has to be eradicated. Inequality among
individuals is a perennial source of motivation for
voluntary action in every society. Social services are
initiated to help eradicate the inequality and to uplift
the under privileged. The term volunteer is normally
used to denote some one who offers service
• The.term voluntary association is variously defined.
Michael Banton defined it as a group organised for the
pursuit of one interest or of several interests in
common. David L. Sills identified it as a group of
persons, organised on the basis of voluntary
membership without state control, for the furtherance
of some common interest of its members. Lord
Bevridge has defined a voluntary organisation as "one
which, whether its workers are paid or unpaid, is
initiated and governed by its own members without
external contro
 elements
• There are four essential elements in any voluntary
association:
• a) method of formation, which is voluntary on the part of a
group of people,
• b) method of government, with self- governing organisation
to decide on its constitution, its servicing, its policy and its
clients,
• c) method of financing, with at least some of its revenues
drawn from voluntary sources and
• d) motives of profit excluded. Organisations having all the
four elements are rare and perhaps are only the ideal forms.
 Role
• The voluntary agencies have been playing a pioneering role in rural . ' development
activities. They have also exhibited the qualities of flexibility of service, personal touch
and proximity to the clientele. In addition, they have demonstrated the capacity to initiate
and experiment with new programmes and showed sensitivity to meet difficult problems in
ways that cannot be adopted by the state. However, it is necessary to envisage the
following role for these bodies in the context of village base organisations.
• a) The voluntary agencies have to supplement and not to compete with government
efforts. The government should not consider their activities as duplication.

• b) They act as eyes and ears of the people at the rural level and act as a source of reliable
feedback to government so that it can design the policies and programmes accordingly.

• c) It is possible for the voluntary agencies to reach a large number of people and set an
example for others.
• .
• d) Voluntary bodies, quite often, take initiative in the
implementation of certain acts such as Minimum Wages Act,
Abolition of Bonded Labour Act etc., in letter and in spirit.
Through public interest litigation and administrative measures,
these bodies could activise the system and make it respond.
• e) Dissemination of information is another potential area in
which the voluntary agencies is of immense use. It is quite often
seen that information regarding various schemes, programmes
projects etc., do not reach the rural poor. Information is power
and the role of the voluntary body is to distribute such power
and make it accessible to the rural poor. f) Voluntary sector has
been in the forefront in utilising rural skills and talent. Further, it
is possible to minimis? the dependency syndrome through
various methods and a sense of self-reliance has to be instilled
among the villagers
• However, the plan document laid down the following criteria for identifying voluntary
agencies for enlisting their help.
• 1) The organisation should have a legal entity.
• 2) It should be based in a rural area, and should be working there for a minimum period of
three years.
• 3) It should have broad based objectives serving the social and economic needs of the
community as a whole, and mainly the weaker sections. It must not work for profits but on
a no-profit-no-less basis;
• 4) Its activities should be open to all citizens of India irrespective of religion caste, creed,
gender or race.
• 5) It should have the necessary flexibility, professional competence and organisational skills
to implement programmes;
• 6) Its office bearers should not be members of any political party;
• 7) It must declare that it will adopt constitutional and non-violent means for rural
development process;
• 8) It must be committed to secular and democratic concepts and methods of functioning.
The above mentioned criteria has been prescribed since some of the voluntary bodies have
 programs
• 1) Integrated Rural Development/Rural Landless Employment Guarantee
Programmks: 2) Implementation of land ceilings and distribution of surplus
land; 3) Enforcement of minimum wages to agricultural labourers: 4)
Identification and rehabilitation of bonded labourers; 5) Supply of safe
drinking water; repair and maintenance of water supply system with
community support; 6) Afforestation, social forestry, development of bio-
gas and alternative energy sources (Solar, Wind, Energy, Smokeless Chulas,
etc.); 7) Promotion of family planning; 8) Primary health care; control of
leprosy, T.B., Blindness; and preventive health programme using village
resources; 9) Programmes for women and children in rural area; 10)
Innovative methods and low cost alternatives in elementary primary and
middle school education for children, adult education and non-formal and
informal education; 11) Consumer protection, promotion of cooperatives;
12) Promotion of handicrafts and village and cottage industries; 13)
Promotion of science and technology
• 5) Rural Housing-improvement of rural slums;
16) Environmental ecological improvement;
and 17) Promotion and encouragement of
traditional media for dissemination of
information.
 Voluntary organization
• Bharat Krishak Samaj, Young Farmer's Association of
India, Action for Food Production, Appropriate
Technology Development Association, Social Work and
Research Centre etc., have been mostly engaged in the
area of agriculture and allied fields. The Arya Samaj,
Rama Krishna Mission, Sai Service Society, the
Servants of India Society have been undertaking
several educational and social service activities. Baba
Amte, Manibhai Desai, Sunder La1 Bahuguna fall
under the category of idealistic organisations whose
main objective is to protect the
 history
• the tradition of volunteerism in India is age
old. It was prevalent even in ancient and
medieval period and its roots were lying in
religion. Religion emphasized the value of
charity, philanthropy, and mutual help. Giving
the alms and feeding and caring for the
destitute and the old and handicapped were
religious acts. Even in modern India, charitable
and welfare oriented
• organisations were working for the welfare of the needyand down trodden people but with
religious bias. The Christian missionaries worked in remote and backward places for the
betterment of the tribal people and under privileged masses through promotion of
education and health services. On the other hand, Hindu organisations contributed a lot
for social change in the country through various social movements. Persons like Raja Ram
Mohan Roy, Ishwar Chander Vidya Sagar, Keshab Chander Sen, M.G.Ranade, Pandita
Ramabai, Annie Besant, and many others took up various social reform issues and formed
groups and associations in an attempt to make their efforts effective. Some of these were
Brahmo Samaj (1828), Paramhans Sabha (1849), Widow Marriage Association (1850),
Sarvjanik Sabha (1871), Arya Samaj (1875), Arya Mahila Samaj (1875), the Theosophical
Society , Indian National Congress (1885), Indian Social Conference (1887) and Ramkrishan
Mission (1897). These were mainly working for social reforms in the society. Due to various
socio economic issues emerged out of urbanisation and industrialisation towards the end
of nineteenth century, various new voluntary organisations were formed. As a result, the
then government enacted the Literary, Scientific, and Charitable Society Registration Act in
1850. This act was later reformulated as the Societies Registration Act in 1860. The
enactment of the Societies Registration Act of 1860 was a land mark in the history of the
development of voluntary organisations.
• After independence, there was awareness that development to be meaningful
requires mobilisation of resources, public cooperation and creation of social capital.
During 1980’s, voluntary organisations are going through an era of transition in the
social service sector by changing the voluntary culture in to a more professional NGO
culture and volunteerism turning into development monitoring and management. In
this transitional phase, NGOs became more professional and voluntary shape took
shape of social change and development movement with a professional touch. As a
result, professionals from various fields joined voluntary organisations to undertake
multi-sectorialdevelopment work. It was recognised that no development strategy
can be successfulunless a shared vision of public sector, private sector and voluntary
sector is created. It was also realised that the process of social mobilisation and
development of people’s initiative cannot be achieved without the active support
and involvement of voluntary organisations. That is why voluntary organisations
have been given due recognition in the planning process of the country rightfrom
the first five year plan.3. Voluntary Sector during Plan PeriodDuring the first plan
period, it was highlighted that the public co-operation and public
 Types of Voluntary Organisations
• A.Traditional Associations: These associations exist around a social unit
defined by a tribe, ethnicity, or caste and undertake a wide range of
functions. Besides mediating the inter-family relations, such associations
develop elaborate systems, norms and procedures for governing the use
and protection of natural resources. Several important struggles to
protect and advance customary rights of tribals over natural resources in
different parts of the country are led by such associations.
• B.Religious Associations: These associations were formed by different
sects and religions as charity, help to the needy, service to the poor and
daan(giving) have been uniformly recommended by all the religions and
sects in India. Education, health care, drinking water, afforestation, social
welfare, etc. are numerous arenas of human action where fairly
organized forms of civil society activity are carried out by religiously
inspired VOs.
• C.Social Movements:These associations emerged as a result of social
movement. VOs / NGOs through these social movements try to reform
society, institutions and governance and act as harbingers of social change.
These movements are of several types: Focusing on the interest and
aspirations of particular groups such as: SCs, STs and women. Protests
against social evils like: liquor, dowry, inheritance rights etc.Protests
against displacement due to big development projects.Campaigns against
environmental degradation, corruption and forright to information,
education and livelihood.
• D.Membership Associations:Membership organisations may be
representational –set up to represent the opinions and interest of a
particular category of citizens e.g. unions of rural labour, farm workers,
women workers, consumer associations etc., professional –formed around
a particular occupation or profession e.g. association of lawyers, teachers,
engineers,
• managers, journalists etc., social-cultural –organised
around a social or cultural purposes e.g. Nehru Yuvak
Kendras, clubs for sports, Natak Mandalis etc. and self-
help groups –a growing category of membership
organisations e.g. savings and credit groups etc.
• E.Intermediary Associations:These associations
function between individual citizens and macro
stateinstitutions like the bureaucracy, judiciary and
police etc. These could be ofseveral types, e.g. service
delivery, mobilization, support, philanthropic,advocacy
and network.
 challenges
• there is a lot of variation in the procedures /
guidelines of thedepartments of the Central
and State Governments, and other
organisations, for involving VOs in different
programmes / schemes. Therefore,
simplification of guidelines for voluntary
organisations is needed.
• Most ofthe departments / ministries have not
played a pro-active role in establishing
partnership with committed VOs and have
generally confined their attention to only
those who apply for funds to their offices.
They have, on their own, not requested good
VOs to come to their fold and begin a
relationship.
• Departments / Ministries have a uniform
appraisal procedure inhibiting sensitive or
well-established VOs orthose engaged in social
activism from approaching the government
departments.
• Another challenge faced by VOs isthat there is
no uniformity among methodologies of
monitoring and evaluation. There is need to
improvemethodologies for monitoring and
evaluation of the work undertaken by
thevoluntary sector
 Consumer protection act 2019
• The Consumer Protection Bill, 2019 has been
passed by the Lok Sabha on Jul 30, 2019, and
Rajya Sabha passed on Aug 06, 2019. This bill
was introduced in the parliament by the
Minister of Consumer Affairs, Food and Public
Distribution, Mr. Ram Vilas Paswan.
• What is the Meaning of Consumer Protection
Act, 2019?
• Consumer Protection Act, 2019 is a law to
protect the interests of the consumers. This
act was inevitable to resolve a large number of
pending consumer complaints in consumer
courts across the country. It has ways and
means to solve the consumer grievances
speedily.
• What is the aim of the Consumer Protection Act?
• The basic aim of the Consumer Protection Act, 2019 to save
the rights of the consumers by establishing authorities for
timely and effective administration and settlement of
consumers’ disputes.
• What is the Definition of the consumer?
• As per the act; a person is called a consumer who avails the
services and buys any good for self-use. Worth to mention
that if a person buys any good and avail any service for resale
or commercial purpose, is not considered a consumer. This
definition covers all types of transactions i.e. online and
offline.
• Key features of the Consumer Protection Act, 2019
• 1. Establishment of the Central Consumer Protection Authority (CCPA):
• The act has the provision of the Establishment of the CCPA which will
protect, promote and enforce the rights of consumers. The CCPA will
regulate cases related to unfair trade practices, misleading
advertisements, and violation of consumer rights.
• The CCPA will have the right to impose a penalty on the violators and
passing orders to recall goods or withdraw services, discontinuation of
the unfair trade practices and reimbursement of the price paid by the
consumers.
• The Central Consumer Protection Authority will have an investigation
wing to enquire and investigate such violations. The CCPA will be
headed by the Director-General
• Rights of consumers:
• The act provides 6 rights to the consumers;
• i. To have information about the quantity, quality, purity, potency, price,
and standard of goods or services.
• ii. To be protected from hazardous goods and services.
• iii. To be protected from unfair or restrictive trade practices.
• iv. To have a variety of goods or services at competitive prices
• 3. Prohibition and penalty for a misleading advertisement:
• The Central Consumer Protection Authority (CCPA) will have the power to
impose fines on the endorser or manufacturer up to 2-year imprisonment
for misleading or false advertisement (Like Laxmi Dhan Warsha Yantra).
• Worth to mention that repeated offense, may attract a fine of Rs 50 lakh
and imprisonment of up to 5 years.
• Consumer Disputes Redressal Commission:
• The act has the provision of the establishment of the
Consumer Disputes Redressal Commissions (CDRCs) at
the national, state and district levels.
• The CDRCs will entertain complaints related to;
• i. Overcharging or deceptive charging
• ii. Unfair or restrictive trade practices
• iii. Sale of hazardous goods and services which may be
hazardous to life.
• iv. Sale of defective goods or service
• Jurisdiction under the Consumer Protection Act,
2019
• The act has defined the criteria of Consumer
Disputes Redressal Commission (CDRCs). The
National CDRC will hear complaints worth more
than Rs. 10 crores. The State CDRC will hear
complaints when the value is more than Rs 1 crore
but less than Rs 10 crore. While the District CDRC
will entertain complaints when the value of goods
or service is up to Rs 1 crore.
 Consumer voluntary organizations

• 1) Accelerating Consumer AwarenessThe first

priority of a consumer organisation is to
accelerate consumer awareness towards their
rights. To accomplish this task following efforts are
made:
• (i) To publish brochures, journals and monographs.
• (ii) To arrange conferences, seminars and
workshops.
• /Educating Consumers:
• 2) Collecting Data on Different Products and testing them:These
organisations collect samples of different products from time to time
and test them. After that the results of the tests are declared to public.
In this way, these organisations provide prior information to consumers
about the authenticity of product and protect them. Apart from this,
these organisations also work in conducting investigation/ research on
consumer’s problems.
• (3) Filing Suit on Behalf of Consumers:
• Whenever a consumer fails to raise his voice of protest regarding his
complaints, these consumers’ organisations come to his rescue and file
a case in the court. By rendering this service to the consumers, the
consumers get a feeling that they are not alone in their struggle. They
also run voluntary complaint centres for the guidance of consumers.
• (4) Organising Protests against Adulteration etc.:The consumers’
organisations play a significant role in eliminating the evils of
adulteration, hoarding, black- marketing, and under-weight
selling. Whenever there is an unnecessary rise in the prices of
certain things, the consumers’ organisation raise a voice of
protest against it.
• Consumer organisations prepare films and cassettes related to
adulteration in food products, ill effects of medicines and Acts
related to consumer protection. Many a times exhibitions are
arranged to bring awareness among the consumers against
spurious and adulterated products. Nowadays consumer
organisations are playing a major role in encouraging consumers
to raise their voice against faulty and inferior products.
• 5) Helping Educational Institutions:
• These organisations tell the educational
institutions the way to prepare courses of
study keeping in view the interests of the
consumers. They stress the fact that a special
article on consumers’ interest should always
be added to the courses on general study.
• (6) Promoting Network of Consumer Associations:
• Consumer organisations are trying to grow their numbers.
They want to cover all the regions of the country so that
consumers of all the regions are benefited by their services.
Their effort is to form a federation at the apex level and then
through the medium of the federation reach state and district
level.
• (7) Extending Support to Government:
• Consumer organisations by informing the government
agencies about adulteration, artificial scarcity, inferior quality
products and other such evils help the government. This in
turn helps the government to conduct proceedings in time.
• Consumer organisation of india-
• (a)- Voluntary Organization in Interest of Consumer Education(VOICE)
• voice of the Customer (VoC) is a term that describes your customer’s feedback about their
experiences with and expectations for your products or services. It focuses on customer needs,
expectations, understandings, and product improvement.
• VoC programs have gained traction over the years and are fast-growing segments of a core business
strategy for organisations. They work exceptionally well for brands as customers demand more direct
engagement with a firm and because capturing and acting on customer feedback is critical to
understanding a prospect’s complex decision-making process.

• (b)- Consumer Care SocietyConsumer care society (CCS) is a consumer organisation that works to
promote and protect your consumer rights.established since 1994, ccs strives to empower and
advocate for consumer protection through dissemination of consumer information, advisory services
and grievance redressal.
• CCS is registered with many goverenmental agencies and regulators like TRAI,BIS, Petroleum and
Natural Gas Regulatory Board, DOT, ICMR at the Central Government levels and with almost all service
providers at the State Level like BWSSB, BESCOM, BDA, BBMP. CCS is widely recognized as an premier
consumer voluntary organization (CVO) in Bangalore and Karnataka.

• (c)- Citizen consumer and Civic Action Group (CAG)

• Citizen Consumer and Civic Action Group
(CAG) is a non-profit, non political,
professional organisation working towards
protecting citizens' rights in consumer and
environmental issues and promoting good
governance including transparency,
accountability and participatory decision
making.
 FEDCOT
• The Federation of Consumer Organisations of Tamil Nadu and
Pondicherry, well known by its acronym, FEDCOT, is a nation-
wide non-governmental organisation that is voluntary non-
profitable, non-political, civic-minded, secular and registered
under Societies Act [Registration Number 227/90] to work for
the promotion and development of consumers’ interest and
their welfare. Freedom fighter R.R.Thalavai was responsible
for the founding of the organisation in 1990. It is an umbrella
body of more than 350 registered consumer associations in
Tamil Nadu and Pondicherry. FEDCOT is a consumer
movement of the people, by the people and for the people. It
is concerned with human values.
• Objectives
• To promote a network of organisations working for consumer awareness
and for the promotion of consumers interest.
• To strengthen the growth of the organised consumer movement in India.
• To resolve consumer issues and educate on the rights and responsibilities
of consumers.
• To promote through the purchasing power of consumers a
“need–oriented development” that will ensure socio- economic justice
and environmental quality of life for all.
• To identify issues and to pool resources for campaign, lobbying and policy
advocacy.
• To provide relevant and updated information.
• To maintain liaison with the governments at the Centre and the State.
• Focus
• FEDCOT’s programmes are designed and implemented so
as to train people as citizen – consumers, to develop and
empower them at the community level through
participating accountable governance, socio-economic,
sustainable agriculture gender equality and
environmental efforts, to facilitate access to, and
management of, resources for people to develop their full
potential and expand their choices in accordance with
their needs and interests. Since its inception, FEDCOT has
been focusing its attention on the following areas.
• Centre Consumer Education and Research
(CERC), set up in 1978, is a non-political, non-
profit and non-government organisation
dedicated to the education and
empowerment of consumers as well as
promotion and protection of consumer
interests through effective uses of education,
research, the media and law.
• Beginning with a protest against a bus fare hike, CERC
started handling complaints of ordinary consumers who
could not take on the might of business. CERC has three
major goals – to make consumers aware of their rights,
to help them protect themselves and to make providers
of goods and services accountable.
• Its activities include, besides comparative testing of
products, complaints handling, legal advice and litigation,
consumer education and awareness programmes, library
and information service, publication, advocacy, investor
and environment protection.
• following are the consumer protection councils -
• (1) Consumer Education And Research Center (Gujarat)- CERC is a recognised
consumer organisation by the Government of India and Government of Gujarat.
It is dedicated to the cause of consumer protection, environment protection,
investor protection and public health and safety issue.
• (2) Bureau Of Indian Standards- BIS is the National Standard Body of India
established under the BIS Act 2016 for the harmonious development of the
activities of standardization. The Product Certification Schemes of BIS aims at
providing Third Party assurance of quality, safety and reliability of products to
the customer.
• (3) Federation Of Consumer Organisation In Tamil Nadu-Cuddalore District
Consumer Protection Organisation is a not-for-profit organisation based in Tamil
Nadu which aims to protect the interests of consumers through campaigning, to
educate consumers on their rights to legal redressal and to hold workshops and
training for consumer activists.
• (
• (4) Mumbai Grahak Panchayat-Mumbai Grahak Panchayat (MGP) is perhaps the
largest voluntary consumer organisation in India with a membership of 24,500
families. It has been engaged in activities of consumer protection and education
for the last 33 years. Its unique collective group buying system provides a best
practice model for sustainable consumption
• (5) Consumer Voice (New Delhi)-VOICE is an acronym for Voluntary
Organisation in Interest of Consumer Education which has pioneered the
protection of consumers in India. Based in New Delhi, the organisation has
championed consumer education in the country since 1983.
• (6) Legal Aid Society (Kolkata)- Legal Aid Services, West Bengal (LASWEB), one
of the pioneering legal aid offering civil society organizations in India,
empowers the poor and the disadvantaged with varied legal entitlements.
Functioning since 1980 as an organic collective of retired judges, practising
lawyers and social activists.
• (
• (7) Akhil Bhartiya Grahak Panchayat-The Pioneer of Indian Consumer Movement,
Grahakteerth Hon. Shri Bindumadhav Joshi is the founder of this organization.
Inspired by him, Dr. Vijay Lad registered this organization. Grahaktirth Hon.
Bindumadhav Joshi is the founder president of Akhil Bhartiya Grahak Panchyat,
Freedom Fighter and Ex Minister.
• (8) The Consumers Eye India.-The Consumer Guidance Society of India (CGSI) is a Non-
Profit consumer organization established in India in 1966 to protect and educate the
Indian consumer about sub-standard products and services, adulterated foods, short
weights and measures, spurious and hazardous drugs, exorbitant prices, endemic
shortages leading to black marketing and profiteering, unfulfilled manufacture
guarantees, and a host of other problems
• (9)United India Consumer's Association- Consumers Association of India (CAI) is a
membership-based organisation with 8,000 registered members all over India. Its
main objectives are: spreading consumer awareness; empowering consumers and
teaching them their responsibilities and rights as consumers. CAI regularly conducts
seminars, workshops and training programmes and publishes various consumer
guides on a variety of topics, which are of interest to consumers
 Special Economic Zones
• An SEZ Policy was announced for the very first time in 2000 in order to overcome
the obstacles businesses faced.
• There were multiple controls and many clearances to be obtained before starting a
venture.
• Infrastructure facilities were shoddy and well below world standards in India.
• The fiscal regime was unstable as well.
• In order to attract huge foreign investments into the country, the government
announced the Policy.
• The Parliament passed the Special Economic Zones Act in 2005 after many
consultations and deliberations.
• The Act came into force along with the SEZ Rules in 2006.
• However, SEZs were operational in India from 2000 to 2006 (under the Foreign
Trade Policy).
• Note:- A precursor to the SEZs, the Export Processing Zones were set up in India
well before. The first EPZ came up in Kandla in 1965 to promote exports. This was
the first EPZ not only in India but in all of Asia as well.
 Special economic zones
• ojectives of Special Economic Zones in India
• Generation of additional economic activity
• Promotion of exports of goods and services
• Promotion of investment from domestic and foreign sources
• Creation of employment
• Development of infrastructure facilities
• Simplified procedures for development, operation, and maintenance of
the Special Economic Zones and for setting up units and conducting
business
• Single window clearance for setting up of a SEZ and an unit in SEZ
• Single window clearance on matters relating to Central as well as State
Governments
• Easy and simplified compliance procedures and documentations with
stress on self certification
 Special Economic Zones Act, 2005
• It is defined as an Act to provide for the establishment,
development and management of the Special Economic
Zones for the promotion of exports and for matters
connected therewith or incidental thereto.”
• The chief objectives of the SEZ Act are:
• To create additional economic activity.
• To boost the export of goods and services.
• To generate employment.
• To boost domestic and foreign investments.
• To develop infrastructure facilities.
 Rules
• The Rules provide for:

• Simplified procedures to develop, operate and maintain SEZs and also to

• set up units and conduct businesses in the SEZs.

• Single-window clearance to set up a Special Economic Zone, and also to set

• up a unit in an SEZ.

• Single-window clearance for matters connected to the Central and State

• governments.

• Simplified compliance procedures and documentation with a focus on

• self-certification.

• Different minimum land requirements for different classes of Special

• Economic Zones.
 SEZ Approval Mechanism
• The SEZ approval mechanism is a single-window process provided by a 19-member
inter-ministerial SEZ Board of Approval (BoA).
• The developer has to submit the proposal to the state government.
• The state government forwards this proposal to the BoA along with its
recommendation within forty-five days.
• The developer or applicant can also directly submit the proposal to the BoA.
• The Board, which has been constituted by the Central Government, and is a 19-
member Board takes the decision considering the merits of the proposal. All decisions
taken by the Board are by consensus.
– The Board is chaired by the Secretary of the Dept. of Commerce, Ministry of Commerce and
Industry.
– The other members are from various bodies and ministries such as the Central Board of Excise
and Customs (CBEC), the Central Board of Direct Taxes (CBDT), Department of Economic
Affairs, Dept. of Commerce, Ministry of Science and Technology, Ministry of Home Affairs,
Ministry of Law and Justice, Ministry of Urban Development, etc.
• Once the BoA gives its approval, and the central government notifies the area of the
SEZ, units are allowed to be established inside the SEZ.
 Facilities and incentives
• The government offers many incentives for companies and businesses established in SEZs. some
of the important ones are:
• Duty-free import or domestic procurement of goods for developing, operating and maintaining
SEZ units.
• 100% Income tax exemption on export income for SEZ units under the Income Tax Act for first 5
years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5
years. (Sunset Clause for Units will become effective from 2020).
• Units are exempted from Minimum Alternate Tax (MAT).
• They were exempted from Central Sales Tax, Service Tax and State sales tax. These have now
subsumed into GST and supplies to SEZs are zero-rated under the IGST Act, 2017.
• Single window clearance for Central and State level approvals.
• There is no need for a license for import.
• In the manufacturing sector, barring a few segments, 100% FDI is allowed.
• Profits earned are permitted to be repatriated freely with no need for any dividend balancing.
• There is no need for separate documentation for customs and export-import policy.
• Many SEZs offer developed plots and ready-to-use space.
• Apart from the firms operating in SEZs, developers of SEZs also receive many benefits and
incentives from the government.
 challenges
• Since SEZs offer a wide range of incentives and tax benefits, it is
believed that many existing domestic firms may just shift base to SEZs.
• There is a fear that the promotion of SEZs may be at the cost of fertile
agricultural land affecting food security, loss of revenue to the
exchequer and cause uneven growth with adverse effects.
• Apart from food security, water security is also affected because of the
diversion of water use for SEZs.
• SEZs also cause pollution, especially with the release of untreated
effluents. There has been a huge destruction of mangrove in Gujarat
affecting fisheries and dairy sectors.
• SEZs have to be promoted but not at the cost of the agricultural sector
of the country. It should also not affect the environment adversely.
l. No. Name of the developer Location Type of SEZ SEZ status

Kundalahalli Village,
KrishnarajapuramHobli,
DivyasreeTechnopar IT/ITES enabled Notified/
Bangalore East Taluk,
k services Operational
District Bangalore,
Karnataka
Rachenhalli&Nagavara
Manyata Embassy Notified/
Village, Bangalore District, IT/ITES
Business Park Operational
Karnataka
Doddakannelli Village,
VarthurHobli, Sarjapur Notified/
WIPRO Limited IT
Road, Bangalore, Operational
Karnataka
Doddathogur Village,
Notified/
WIPRO Limited BegurHobli, Electronic City, IT
Operational
Bangalore, Karnataka
Outer Ring Road,
Vikas Telecom Devarabeesanhalli Village, Notified/
IT/ITES
Private Limited VarthurHoblic, Bangalore Operational
East Taluk, Karnataka
Devarabeesanahalli,
RMZ Ecoworld
Bhoganahalli and Notified/
Infrastructure Pvt. IT/ITES
Doddakanahalli, Bangalore, Operational
Ltd.
Karnataka
KadubeesanahalliVill,
Cessna Business Notified/
VarthurHobli, District IT/ITES
Park Pvt. Ltd. Operational
Bangalore, Karnataka
Global Village Pattengere/
Tanglin Development Mylasandra Villages, Off Notified/
IT/ITES
Ltd. Mysore Road, RVCE Post, Operational
Bangalore, Karnataka
Infosys Technologies Hebbal Industrial area, Notified/
IT/ITES
Limited District Mysore, Karnataka Operational
Sadaramangala and
Information
PattandurAgrahara Village, Notified/
Technology Park IT/ITES
Whitefield Road, District Operational
Limited
Bangalore, Karnataka
 Advanatges
• 10-year tax holiday in a block of the first 20 years
• Exemption from duties on all imports for project development
• Exemption from excise / VAT on domestic sourcing of capital goods for project development
• No foreign ownership restrictions in developing zone infrastructure and no restrictions on repatriation
• Freedom to develop township in to the SEZ with residential areas, markets, play grounds, clubs and
recreation centers without any restrictions on foreign ownership
• Income tax holidays on business income
• Exemption from import duty, VAT and other Taxes
• 10% FDI allowed through the automatic route for all manufacturing activities
• Procedural ease and efficiency for speedy approvals, clearances and customs procedures and dispute
resolution
• Simplification of procedures and self-certification in the labor acts
• Artificial harbor and handling bulk containers made operational through out the year
• Houses both domestic and international air terminals to facilitate transit, to and fro from major domestic
and international destinations
• Has host of Public and Private Bank chains to offer financial assistance for business houses
• A vibrant industrial city with abundant supply of skilled manpower, covering the entire spectrum of
industrial and business expertise
• Well connected with network of public transport, local railways and cabs
• Pollution free environment with proper drainage and sewage system
• In-house Customs clearance facilities
• hat Is Knowledge Process Outsourcing (KPO)?
• Knowledge process outsourcing (KPO) is the outsourcing
of core, information-related business activities. KPO
involves contracting out work to individuals that typically
have advanced degrees and expertise in a specialized
area.
• The information-related work can be carried out by
workers in a different company or by a subsidiary of the
same organization. The subsidiary may be in the same
country or in an offshore location to save costs or other
resources.
• Knowledge process outsourcing (KPO) contracts
out knowledge-based wok to qualified subject
matter experts.
• Companies utilize KPO when they are looking for
specialized knowledge and expertise and when
they have a shortage of skilled professionals on
staff.
• Ideally, companies look to KPO to simultaneously
obtain a highly-skilled workforce at a lower cost.
• Knowledge process outsourcing is the purposeful allocation of
relatively high-level tasks involving specialized knowledge or
problem-solving to an outside organization or third party that has a
high level of subject matter expertise, often located in a different
geographic region that the company itself.
• KPO is different from business process outsourcing (BPO), which
involves the outsourcing of labor and other operational work to a
third party to save money. Although KPO is a subset of BPO, KPO
involves far more specialized, analytical, and knowledge-based work.
• Companies that engage in KPO look to obtain highly educated and
skilled individuals without having the cost of training and developing
those workers. Through KPO, a company can quickly add experts in
specific fields to boost competitiveness and increase earnings.
• Types of KPO Services
• Some common example of KPO outsourcing domains
include:
• Financial consultants
• Research and development (R&D)
• Business operations (management consulting)
• Technical analysis
• Investments
• Legal
• Medical & Healthcare
• Data analysis and interpretation
• easons for Knowledge Process Outsourcing
• Companies utilize KPO when they are looking for specialized knowledge
and expertise where that knowledge base or skills cannot be found in-
house. However, companies that engage in KPO offshore also typically do
so in order to reduce costs by hiring skilled workers earning lower wages
in another location instead of hiring one directly as an employee. Ideally,
companies look to KPO to simultaneously obtain a highly-skilled
workforce at a lower cost.
• For example, a manufacturer might use raw materials, add value to those
materials through various processes, and then sell the result as a final
product. The company might look to KPO to determine how to improve
efficiency in its production process so that it can deliver maximum value
for the lowest possible total cost. The result of KPO might also help the
company create a competitive advantage.
• help companies reduce operational or production costs by
creating new processes or streamlining efficiency. KPO also
fills the gap or need for skilled employees in a particular field.
KPO also frees up existing staff, including management, to do
other work boosting efficiency and productivity.
• The flexibility that comes with KPO allows a company to
increase or reduce staff easily. For example, if economic
conditions worsen, a company can easily reduce its KPO staff
to cut costs. Conversely, a company can quickly hire
specialized staff to boost profits or revenue. KPO helps a
company to be more nimble and adapt to the changes in its
industry and competitive landscape.
advantages do exist with KPO. Privacy of intellectual property and
business security can be compromised if classified or proprietary
information is lost, copied, or brought to a competitor. Companies
have less control over the hiring process of outsourced workers. As
a result, a company might not be able to ensure the character of
its outsourced employees or the quality of their work.
• Implementing KPO can be time- and resource-intensive to
establish a successful operation. Moreover, communication can
be a concern and a challenge, due to legal, language, and
cultural barriers. Another disadvantage might be that existing
employees might feel threatened by the hiring of outsourced
workers and feel their jobs are at risk.
• What Is Business Process Outsourcing?
• Business process outsourcing (BPO) is a
method of subcontracting various business-
related operations to third-party vendors.
Although BPO originally applied solely to
manufacturing entities, such as soft drink
manufacturers that outsourced large
segments of their supply chains, BPO now
applies to the outsourcing of services, as well.
• Many businesses, from small startups to large companies, opt to
outsource processes, as new and innovative services are
increasingly available in today's ever-changing, highly
competitive business climate.
• Broadly speaking, companies adopt BPO practices in the two
main areas of back office and front office operations. Back office
BPO refers to a company contracting its core business support
operations such as accounting, payment processing, IT services,
human resources, regulatory compliance, and quality assurance
to outside professionals who ensure the business runs smoothly.
• By contrast, front office BPO tasks commonly include customer-
related services such as tech support, sales, and marketing.
• BPO options depends on whether it contracts its operations within or
outside the borders of its home country. BPO is deemed "offshore
outsourcing" if the contract is sent to another country where there is
political stability, lower labor costs, and/or tax savings. A U.S. company
using an offshore BPO vendor in Singapore is one such example of offshore
outsourcing.
• BPO is referred to as "nearshore outsourcing" if the job is contracted to a
neighboring country. Such would be the case if a U.S. company partnered
with a BPO vendor located in Canada.
• A third option, known as "onshore outsourcing" or "domestic sourcing,"
occurs when BPO is contracted within the company’s own country, even if
its vendor partners are located in different cities or states.
• BPO is often referred to as information technology-enabled services (ITES)
because it relies on technology/infrastructure that enables external
companies to efficiently perform their roles.
• The Attraction of Business Process Outsourcing (BPO)
• Companies are often drawn to BPO because it affords them greater operational
flexibility. By outsourcing non-core and administrative functions, companies can
reallocate time and resources to core competencies like customer relations and
product leadership, which ultimately results in advantages over competing
businesses in its industry.
• BPO offers businesses access to innovative technological resources that they might
not otherwise have exposure to. BPO partners and companies constantly strive to
improve their processes by adopting the most recent technologies and practices.
• Since the U.S. corporate income tax is among the highest in the developed world,
American companies benefit from outsourcing operations to countries with lower
income taxes and cheaper labor forces as viable cost reduction measures.
• BPO also offers companies the benefits of quick and accurate reporting, improved
productivity, and the ability to swiftly reassign its resources, when necessary.
• Business process outsourcing (BPO) is a method of
subcontracting various business-related operations
to third-party vendors.
• Although BPO originally applied solely to manufacturing
entities, such as soft drink manufacturers that
outsourced large segments of their supply chains, BPO
now applies to the outsourcing of services as well.
• BPO is deemed "offshore outsourcing" if the contract is
sent to another country where there is political stability,
lower labor costs, and/or tax savings.
 LPO
• What is LPO?
• LPO stands for Legal Process Outsourcing.An
LPO is an offshore unit, undertaking legal work
assigned by corporations in which in-house
legal departments or organizations from areas
where it is costly to perform, such as the
United States or Europe to areas where it can
be performed at a significantly decreased cost,
primarily India.
• Process Outsourcing (LPO) is a lesser known
concept among the non-legal community. As soon
as a person hears the term LPO, their mind
immediately draws parallel to the better-known
concept of BPO. Images of call centres filled with
youngsters jabbering away on the phone in
American accent flash across. LPO and BPO are
conceptually similar. But in the matter of
execution and qualification, LPO is a different
world altogether.
• COST SAVINGS One of the most significant
advantages of outsourcing legal functions is
cost savings. Organizations can reduce their
cost structures through labor arbitrage—the
wage differential between in-house legal
personnel and outside vendors—to reap
tremendous cost benefits
• Access to External Talent
• Outsourcing legal work to external vendors allows
organizations to access high-level talent and niche expertise
that does not exist within the firm. For example, litigation
firms lacking litigation support expertise may outsource
certain aspects of litigation support such as coding and
document review to niche providers. Access to external talent
is particularly useful for small boutique firms to fill gaps in
internal competencies. Legal offshoring also allows domestic
firms to tap into global expertise. Offshore destinations such
as India and China boast a large, highly-trained and motivated
labor force, ensuring a large pool of qualified workers.​
• Flexibility
• Employing a combination of in-house and external talent allows
law firms and organizations to tailor their capabilities in
response to workload and client demands. Workflow challenges
are particularly prevalent for small and mid-size firms. These
firms may find it more difficult to spread variability due to a
smaller number of attorneys, support staff, and clients.
Outsourcing legal work allows firms to quickly scale up for a
case or project, leveling the playing field with larger firms.
Flexible staffing also reduces firm overhead. By outsourcing to
external vendors, law firms can avoid the fixed costs of salaries
and benefits associated with full-time, permanent personnel.
• It's Not Just for Big Firms
• Outsourcing is technically defined as using resources
outside the internal operations of a business to keep
things running smoothly. Small firms, in particular,
might find themselves slammed with a time-draining
major case that will demand all hands on deck for a
period of time. But what happens to other clients while
the entire in-house staff is focused on that one case?
Outsourcing provides flexibility and cost savings over
hiring additional staff to keep the firm up and running
efficiently.
• 24/7 support By outsourcing LPO services to India, you law firm can
leverage the benefits that come with India’s time zone. Since your
night, is India’s day, you can get round-the-clock services. Not only
will all your pending work be completed, but you can also stay a step
ahead of your competitors.
• Better focus on core business operations By delegating some of your
non-core legal work to an offshore service provider, you can minimize
your delivery time, reduce your workload and free-up internal
resources to focus on building up the core functions of your law firm.
• Ongoing innovation and business transformation Outsourcing can
help your law firm keep up with the latest technology, changing
business processes and upcoming trends. This can give your legal
corporation an added advantage in the competitive legal field.
 DISADVANATAGES
• Confidentiality breaches Law firms often tend to worry about the
confidential relationship between their valuable clients and their firm.
This often stops them from outsourcing. However, Indian LPO service
providers compile by stringent regulation when it comes to the privacy
of client information. Before outsourcing, you can check with the service
provider about their security, privacy and confidentiality rules. This can
help your law firm avoid issues with confidentiality.
• Communication and cultural barriers Legal corporations and law firms
may not outsource due to the cultural and communication barriers that
they have to face. Poor communication can be problem in legal process
outsourcing, leading to poor responsiveness, unmet goals, ineffective
governing or a lack of understanding. To avoid this problem, you can
outsource a pilot project to a service provider and check their level of
communication and if they are able to understand yo
• Hidden costs At times a law firm can stay away from outsourcing,
because of the hidden costs involved. Hidden costs may be added
to the overall cost of outsourcing due to employee turnover,
quality control, vendor profit margins, vendor management or
rising operating costs. You can ask your service provider to provide
you with a detailed list of their costs, so that you are aware of even
the hidden costs.
• Conflicts in interests While outsourcing LPO, you may find that
there is a difference in the interests of your firm and the service
provider. This can result in reduction in sales, irritated
employees/customers or slow turnaround time. Initiate regular
meetings to make sure that your law firm and the service provider
are on the same page. This way, you can avoid conflicts in interests.
 EXAMPLES OF LPO
• Types of LPO services
• The LPO services include agency work and services that require physical presence for example
appearances in court and face-to-face negotiations. The services that are most commonly offered are
namely agency work, document review, legal research and writing, drafting of pleadings and briefs, and
patent services.
The array of work, which, you may have to undertake while working in an LPO, would range from High-
end legal research and drafting briefs, memorandums and commercial contracts to Litigation support
work like evidence related work and first-level document review.
• Secretarial including presentations
• Legal publishing services
• Contract drafting and review services
• Business/market research
• Form completion and information population, such as tax forms
• Document review including e-discovery
• Administrative such as accounting and billing
• Types of LPO Providers
• Third-party multiservice providers
• Third-party niche providers
• Captive centers of large legal and audit firms
• Captive centers of corporate legal departments
• Why LPO?
• In the recent few years, the global spending on legal services LPO
been estimated to be over $680-690 billion (of which about 60% is
accounted in the United States and Europe). With such demand for
legal services, corporations and law firms need to handle the large
volumes while keeping costs in check and maintaining profitability.
This is where LPO comes into the picture wherein core legal
functions are delegated to external counsel to complete the
assigned task on the basis of set parameters and fixed timelines.
• India, with its large pool of English proficient lawyers trained in
common law, is anticipated to reach USD 11.01 by 2025 of the
global Legal Process Outsourcing (LPO) requirement and estimated
to be at $35.9 billion by 2025.
CORPORATE CRIMES
 IMPACT OF BPO IN INDIA

• n India, the BPO or more precisely, the software industry has boosted the Indian
economy largely. This sector is creating jobs for millions of people worldwide. As
per the latest data, the BPO sector provides direct employment to about 2 million
people and has created indirect employment opportunities to 8 million people. A
reputed BPO service provider in India has a huge impact on the economic growth
of the company. Keeping in mind all these facts, this blog will tell you how the ITES
or BPO providers are helping to boost up the Indian economy.
• The BPO companies are narrowing down the Geographical barriers. It is seen that
through the BPO sector, the social stature of India has improved to a greater
extent. The domestic call centers have put the name of India on top of the global
Map. This sector has largely contributed to the nation’s growth and it is
transforming within a short time. This sector is just 30 years old and has been the
major driving force to a large section of employment. Met Technologies is one
such reputed BPO service provider in India that has employed a large section of
people throughout the country.
• Growth in the Indian Economy
• Growth in the Indian Economy
• The call centers in India have made a sustainable and long-lasting impact on the overall
growth of the economy of the country within the last 10 years. This sector has empowered
diverse human resources. As per the study conducted by the NASSCOM, this sector is still in
the nascent stage. It is constantly looking for ways of improvement.
• Higher Employment Opportunities
• As the ITES or BPO sector is booming, more and more employment opportunities are coming
in front. This is reducing the problem of unemployment in India to a greater extent. Even the
person who has just completed the college life can join in the BPO sector and earn money.
• Major Outsourcing Location
• BPO sector has positioned itself as the major outsourcing location that is selling the high
quality and affordable services to the clients. The call centers are not regarded as the
unsophisticated back-end process anymore. The BPO service provider as like Met
Technologies provides services that include software development, processing, application
development, and technical support services and data entry.
• Why India Is a Booming Market for BPO
• India is considered as the booming market for ITES or BPO sector. Here are some of the
reasons why India is referred to as the leading BPO destination-
• High Quality of Services– The quality of services offered by the Indian BPO companies is
never compromised. The targets are reached timely. The functions are monitored timely. The