Banking, NBFCs, gas supply brought under Lok Adalats

NEW DELHI

In a move aimed at reducing the burden on regular courts and ensuring accessible, low-cost, and time-bound legal remedies for the public, Lieutenant-Governor V.K. Saxena on Tuesday approved the inclusion of banking, Non-Banking Financial Companies (NBFCs), and gas supply services under the category of public utility services.

This classification will enable disputes involving these sectors to be taken up by Permanent Lok Adalats (PLAs), offering an alternative forum for resolution outside conventional courts.

An official from the Raj Niwas said the decision was based on a proposal sent by the Law Department of the Government of National Capital Territory of Delhi (GNCTD), which cited the growing number of disputes related to loans, financial recovery, service deficiencies, billing issues, and investment grievances in the banking, NBFC, and gas supply sectors.

“Such inclusion would empower PLAs to take up these matters, reduce the burden on regular courts, and allow for faster and more efficient redressal mechanisms,” said the official.

Currently, three PLAs operate in Delhi to resolve electricity-related disputes involving private distribution companies. The Delhi State Legal Services Authority (DSLSA) is also working on setting up another PLA to cover additional public utility services, including transport, postal and telecom, water supply, public sanitation, health, and insurance services.