Banking, NBFC and gas supply brought under ‘public service’ ambit for Delhi

The proposal was mooted by the Delhi government’s law department, due to a rise in the volume of consumer disputes involving these services

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”, paving the way for grievances in these sectors to be taken up by permanent lok adalats, bypassing regular courts and prolonged litigation, officials aware of the matter said.

A Lok Adalat in Delhi. (Representative photo/HT Archive)

The proposal was mooted by the Delhi government’s law department, due to a rise in volume of consumer disputes involving these services, including cases related to loan recovery, defaults, billing discrepancies, failed transactions and other service deficiencies, which often got stuck in prolonged litigation, they said.

“The decision is a citizen friendly step. It will empower ordinary people by giving them faster access to justice and also reduce the load on regular courts. With increasing penetration of banking and financial services, and the expansion of piped gas networks in Delhi, the volume of disputes has also grown,” the official said.

“By treating these sectors as public utilities, the state acknowledges their critical role in everyday life and institutionalises mechanisms for accountability. This mechanism offers a pragmatic and equitable solution,” the official said.

Lok adalats primarily handle pre-litigation disputes and cases pending in regular courts, particularly those related to public utility services. They aim to provide speedy, amicable, and cost-effective settlements, promoting social justice. Unlike traditional courts, lok adalats focus on compromise and settlement rather than long-drawn litigation.

Currently, three permanent lok adalats are operational in Delhi, handling electricity disputes, particularly those involving private power distribution companies (discoms). Officials said that given their success in resolving grievances without costly legal procedures, the Delhi State Legal Services Authority (DSLSA) is now working to establish another permanent lok adalat that would cover a broader range of services, including transport, postal and telecom services, water supply, sanitation, public health, and insurance services.

The official cited above said that disputes related to banking and NBFCs often involve personal finance cases, wherein individuals may lack the resources to pursue lengthy legal battles.

“Similarly, lapses in gas supply—such as faulty meters, billing errors or service delays—can have an immediate impact on daily life, especially in urban households. The availability of an out-of-court forum for such issues is expected to offer relief to affected customers without the intimidation and delays of regular litigation,” the official said.