The passage of a Bill which seeks to set up a regulatory authority having powers to recall products, cancel licences of defaulting companies and initiate class action suit, is set to be delayed with the Parliamentary panel examining it being given extension till Budget session next year.

The Parliamentary Committee on Food, Consumer Affairs and Public Distribution has been given extension to submit its report on the Consumer Protection Bill, 2015 “up to the first week of Budget Session of Parliament, 2016,” a Rajya Sabha bulletin issued on Thursday said.

A class action is a type of lawsuit in which one or several persons can sue on behalf of a larger group of persons. Under the existing law, affected consumers separately approach the authorities seeking redress of grievances. The new legislation would ensure prompt action against errant companies.

The Bill was referred to the Committee on August 25.

The new law on consumer protection assumes importance as the move comes against the backdrop of the controversy over Maggi instant noodles after some labs found it to be carrying lead beyond permissible limits.

After the standing committee tables its report, the Department of Consumer Affairs will have to approach the Union Cabinet again with the recommendations made by the panel.

Moving amendments, if any, based on the recommendations of the panel and pushing for the passage of the bill in both Houses during the session could prove to be a daunting task for the government as Budget sessions usually have a heavy legislative agenda.

“I want to strengthen the bill further to protect the interests of the consumer. Therefore, the Committee decided to seek an extension. To get into minute details, we will have to talk to a lot of people, consult many more experts. It is a very, very important bill for which we need to work more to ensure that the recommendations help to improve the content of the bill,” Committee Chairman J C Divakar Reddy told PTI.

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