The Consumer Protection Act, 1986 provides for the establishment of the following agencies for the settlement of consumer disputes:
A Consumer Disputes Redressal Forum or ‘District Forum’ to be established by the State Government in each district of the State by notification subject to the provisions that the State Government may if it deems fit, establish more then one District Forum in a district.
A Consumer Disputes Redressal Commission or ‘State Commission’ to be established by the State Government in the State by notification; and
A National Consumer Disputes redressal Commission to be established by the Central Government by notification.
The establishment of these forums has provided an alternative remedy to the jurisdiction of the civil courts. District Forum entertains the cases where the value of claim is upto Rs.5 Lakh. State Commission entertains the cases where the value of claim is upto Rs.20 Lakh. State Commission has power to settle the appeals made against the order of the District Forums. State Commission may call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State. Being the highest Consumer Forum, the National Commission may entertain all the matters where the value of claim exceeds Rs.20 lakh. The National Commission also has the appellate and revisional jurisdiction.