Delhi Residents Can Now Resolve Gas, Loan, Banking Disputes Without Court

Delhi residents facing issues loan defaults, gas supply disruptions or service lapses by banks and NBFCs may no longer need to take the long road to court. Delhi Lieutenant Governor V.K. Saxena has approved a proposal designating banking, non-banking financial companies (NBFCs), and gas supply as Public Utility Services, enabling their disputes to be resolved through Permanent Lok Adalats (PLAs).

This decision allows complaints about banking, NBFCs, or gas services—such as billing errors or service delays—to be settled out of court via Lok Adalats.

The Law Department of the Delhi government had sent the proposal, flagging a rising number of consumer disputes tied to banks, NBFCs and gas providers. "Most of these cases involve everyday issues like EMI defaults, faulty billing, or service delays," a senior official from the department said, adding that "a lot of complainants don't have the time or means to fight prolonged legal battles."

Permanent Lok Adalats are quasi-judicial forums that offer a quicker and low-cost alternative to courts for resolving service-related disputes. Unlike regular courts, they can settle cases even if one party doesn't agree to a compromise, provided the matter falls under public utility services and doesn't involve criminal allegations.

This inclusion is expected to ease the load on civil courts while offering consumers a more accessible legal remedy. "People shouldn't have to wait years to resolve simple issues like incorrect bank deductions or faulty gas billing,"an official associated with the Delhi State Legal Services Authority (DSLSA) said.

At present, Delhi has three PLAs, mainly handling electricity-related disputes with private discoms. A fourth Lok Adalat is being planned to deal with other notified services like transport, telecom, water, health, sanitation and insurance.

The move is seen as particularly helpful for consumers who are typically at a disadvantage when facing off against large financial or utility companies. "This could be a game-changer, especially for senior citizens, daily wage workers, or those with limited legal access," a legal aid volunteer told NDTV.

For now, the DSLSA will be responsible for implementing the change and facilitating the hearing of cases under the newly included services. Residents can approach the nearest Permanent Lok Adalat for any non-criminal disputes involving these three sectors.