Delhi LG has approved a move to treat banks, NBFCs, and gas providers as public utility services. Now, people can resolve related disputes easily through Permanent Lok Adalats without going to court.
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NEW DELHI: People living in Delhi who are facing problems like loan repayment issues, wrong gas bills, or bad service by banks or NBFCs (Non-Banking Financial Companies) will not have to go to court anymore.
A new decision taken by Delhi Lieutenant Governor V.K. Saxena has made it possible for such complaints to be settled outside the court in Permanent Lok Adalats (PLAs).
He has approved a special proposal that now includes banking, NBFCs, and gas supply services under “Public Utility Services“.
With this change, if someone in Delhi is unhappy due to problems like wrong EMI deductions, delay in gas connections, or poor banking services, they can now go to a Permanent Lok Adalat. These Lok Adalats will help in solving the problem quickly and at a low cost.
This proposal was sent by the Delhi Government’s Law Department after they noticed a big rise in the number of complaints from people against banks, NBFCs, and gas companies.
A senior official from the department said,
“Most of these cases involve everyday issues like EMI defaults, faulty billing, or service delays, a lot of complainants don’t have the time or means to fight prolonged legal battles.”
Permanent Lok Adalats are special legal bodies that are faster and cheaper compared to regular courts. They can even pass decisions when one side refuses to compromise, as long as the problem is related to public services and is not a criminal matter.
Officials say that this move will also reduce the pressure on civil courts and help people get faster justice.
“People shouldn’t have to wait years to resolve simple issues like incorrect bank deductions or faulty gas billing,”
-an official working with the Delhi State Legal Services Authority (DSLSA) said.
Currently, Delhi has three PLAs that mostly handle electricity complaints. But now, a fourth Lok Adalat is being planned which will deal with other services like transport, telecom, water supply, health services, cleanliness, and insurance matters.
This step is especially helpful for people who do not have much legal support, like senior citizens, daily wage earners, or people who can’t afford lawyers.
A legal aid volunteer told media:
“This could be a game-changer, especially for senior citizens, daily wage workers, or those with limited legal access.”
Now, the DSLSA will take care of applying this new rule. People can go to their nearest Permanent Lok Adalat and file their complaint if they have any non-criminal issue with banks, NBFCs, or gas service providers.
What Is Permanent Lok Adalats (PLAs)?
Permanent Lok Adalats (PLAs) are quasi-judicial bodies established under the Legal Services Authorities Act, 1987 to provide a fast, affordable, and informal way of resolving disputes related to “Public Utility Services” without going to a regular court.
Key Features of PLAs
- No Court Fees: There’s no fee to file a complaint in a PLA.
- Quick Disposal: Cases are settled much faster than in traditional courts.
- No Lawyer Needed: People can represent themselves; legal aid is also available.
- Binding Decision: If both parties don’t reach a settlement, the PLA can still give a final decision (called an “award”) which is binding like a civil court’s judgment.
- Non-Criminal Matters Only: PLAs deal only with civil matters related to public utility services – no criminal cases are allowed.
Types of Disputes PLAs Can Handle
- Bank-related complaints (e.g., wrong EMI deductions, loan defaults)
- Gas supply issues (e.g., delays, overbilling)
- NBFC-related problems (e.g., loan recovery harassment)
- Electricity disputes
- Insurance claims
- Water, transport, telecom, and sanitation services
Location in Delhi
As of now, Delhi has 3 Permanent Lok Adalats, and a 4th one is being planned for newly added services like banking, NBFCs, and gas.
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