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Section 25: Grants by Central Government

Consumer Protection Act • Official Statutory Text & Practice Guide

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Section 24 All 107 Sections of Consumer Protection Act Section 26

Legal Commentary & Landmark Judgments: Section 25

Section 25 provides the financial foundation for the Central Consumer Protection Authority by authorizing the Central Government to make budgetary grants of sums of money after due parliamentary appropriation. It guarantees the financial independence of the CCPA from private funding or market levies, ensuring its fidelity to public consumer protection.

  • Parliamentary Appropriation Requirement: Grants are released only after due appropriation made by Parliament by law in this behalf, preserving legislative control over executive expenditure.
  • Dedicated Statutory Funding: Funds provided under Section 25 are dedicated exclusively to the discharge of the CCPA's functions, including financing its Investigation Wing, research projects, and public awareness campaigns.
  • Sovereign Regulatory Character: Establishes that the CCPA is fully supported by the public exchequer, distinguishing it from fee-reliant arbitral bodies and reinforcing its standing as a sovereign market surveillance authority.
Key Landmark Precedents:
  • Consumer Education and Research Society v. Union of India (2009) 9 SCC 648: The Supreme Court held that consumer protection statutory authorities must be adequately funded by the State to guarantee operational efficiency and preserve the socio-economic welfare mandate of consumer protection legislation.
  • DDA v. Joint Action Committee, Allottee of SFS Flats (2008) 2 SCC 672: The Supreme Court observed that statutory authorities financed through public appropriations must utilize their resources strictly in conformity with statutory objectives.
Courtroom Practice & Strategic Litigation Guidance:

The fact that the CCPA is funded via parliamentary grants under Section 25 reinforces that financial penalties imposed under Section 21 are punitive deterrent levies payable to the public exchequer (Consumer Welfare Fund), not private damages. When negotiating regulatory settlements or submitting mitigation pleas, emphasize that penalty funds do not compensate individual victims, and demonstrate that voluntary consumer restitution has already been accomplished.

Section 24 All 107 Sections of Consumer Protection Act Section 26