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Q.Sarita bought a flat from Sugan Developers for ₹ 5 crore and was shocked to discover that the quality of construction was bad, roof leaked during the rainy season and plaster was coming off at various places. Which consumer forum should she approach for redressal of her grievance ? (A) District Commission (B) State Commission (C) National Commission (D) Supreme Court

CBSECBSE Class XII Board 2023MCQ· 1mImportance★★★★★
✓ Free question

Sarita's complaint involves a flat worth ₹ 5 crore, which is more than ₹ 1 crore but not more than ₹ 10 crore, so she must approach the State Commission.

Under the Consumer Protection Act, a three-tier redressal machinery hears complaints according to the value of the goods or services paid for. For CBSE Class 12 Business Studies purposes, the correct forum is decided purely by this pecuniary (money-value) limit.

  • District Commission — complaints where the value of goods/services paid as consideration does not exceed ₹ 1 crore.
  • State Commission — value exceeds ₹ 1 crore but does not exceed ₹ 10 crore.
  • National Commission — value exceeds ₹ 10 crore.

Sarita paid ₹ 5 crore for the flat and now faces a clear deficiency in service — a leaking roof and peeling plaster. Her consideration of ₹ 5 crore is above ₹ 1 crore and below ₹ 10 crore, which places her squarely within the original jurisdiction of the State Commission. The District Commission cannot hear it because the value far exceeds ₹ 1 crore, and the National Commission would apply only if the value crossed ₹ 10 crore. The Supreme Court is not part of the consumer redressal machinery for original complaints; it only hears appeals from the National Commission on points of law.

Important

The thresholds are clear-cut: up to ₹ 1 crore → District; above ₹ 1 crore up to ₹ 10 crore → State; above ₹ 10 crore → National. These limits fix original jurisdiction.

✓Final answer

Sarita should approach the State Commission (Option B), because her complaint involves consideration of ₹ 5 crore, which exceeds ₹ 1 crore but does not exceed ₹ 10 crore.

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