Sections 25-27 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 25, 26 and 27 close Chapter III. They deal with the money and the reporting of the Central Consumer Protection Authority: grants from the Central Government after Parliament appropriates funds, accounts kept and audited by the Comptroller and Auditor-General of India, and an annual report that is laid before Parliament. They are not about consumer complaints, but they explain how the Authority is funded and held accountable. If you want to know how these bodies interact with your own matter, a legal consultation can help.
The Central Government may, after due appropriation made by Parliament by law, make grants to the Authority of such sums as it thinks fit for the purposes of the Act (25). The Authority must maintain proper accounts and prepare an annual statement of accounts in the prescribed form, in consultation with the Comptroller and Auditor-General of India (CAG), who audits them (26). The audited accounts go to the Central Government, which lays them before each House of Parliament (26(4)). The Authority prepares an annual report of its activities, which is also laid before Parliament (27).
Sections 25 to 27 at a glance
| Section | Subject | Key point |
|---|---|---|
| 25 | Grants | Central Government grants after appropriation by Parliament by law |
| 26(1) | Accounts | Proper accounts; annual statement as prescribed, in consultation with CAG |
| 26(2) | Audit | By CAG at intervals he specifies; audit expenditure payable by the Authority |
| 26(3) | Auditor's rights | Same as for Government accounts; right to demand books and inspect offices |
| 26(4) | Forwarding and laying | Certified accounts and audit report to Central Government, then before each House |
| 27(1) | Annual report | Once a year, in prescribed form, manner and time; to Central Government |
| 27(2) | Laying | Before each House of Parliament as soon as may be |
Section 25: grants by the Central Government
"The Central Government may, after due appropriation made by Parliament by law in this behalf, make to the Central Authority grants of such sums of money as that Government may think fit for being utilised for the purposes of this Act."
Reading it closely:
- Parliament first. The Central Government can give money only "after due appropriation made by Parliament by law". The Authority's funding is therefore subject to the budgetary process.
- "May" and "as that Government may think fit". There is no entitlement to a fixed sum or a fixed share. The Central Government decides how much.
- Purpose. The grants are "for being utilised for the purposes of this Act", so they are tied to the Act's objects.
The section does not set up a separate fund, does not say the Authority may charge fees or keep penalties it collects, and does not give an amount. Where penalties paid under the Act go is outside this section. This article therefore states nothing on it.
Section 26: accounts and audit
26(1): accounts. "The Central Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form and manner as may be prescribed in consultation with the Comptroller and Auditor-General of India." The form and manner are fixed by rules, made in consultation with the CAG. The word "shall" makes it mandatory.
26(2): audit. "The accounts of the Central Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Central Authority to the Comptroller and Auditor-General of India." The intervals are fixed by the CAG, and the cost of the audit is paid by the Authority.
26(3): auditor's rights. The CAG "or any other person appointed by him in connection with the audit" has "the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India generally has, in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Central Authority."
26(4): reporting. "The accounts of the Central Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government which shall cause the same to be laid before each House of Parliament."
| Step | Who | What |
|---|---|---|
| 1 | Central Authority | Maintains accounts; prepares annual statement |
| 2 | CAG | Audits at intervals he specifies |
| 3 | CAG or his appointee | Certifies accounts; audit report |
| 4 | Central Authority | Forwards annually to Central Government |
| 5 | Central Government | Causes them to be laid before each House of Parliament |
The text has a small ambiguity worth noting: sub-section (4) says the accounts "shall be forwarded annually to the Central Government" without saying who forwards them. The natural reading is the Authority or the CAG's office; the text does not say. It also does not give a date by which this must happen.
Section 27: annual report
"The Central Authority shall prepare once in every year, in such form, manner and at such time as may be prescribed, an annual report giving full account of its activities during the previous year and such other reports and returns, as may be directed, and copies of such report and returns shall be forwarded to the Central Government."
Then 27(2): "A copy of the annual report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament."
Key points:
- The report is yearly and covers "the previous year".
- It must give a "full account of its activities".
- Form, manner and time are "as may be prescribed", so in the rules; none is named here.
- The Authority also prepares "such other reports and returns, as may be directed". The text does not say who directs; read with the rest of the Act, it would be the Central Government to whom they are forwarded, but the section does not say.
- Only the annual report is laid before Parliament under 27(2); the "other reports and returns" are forwarded to the Central Government.
Example. Suppose the Authority conducts several inquiries and passes orders in a year. Its annual report for that year must give a full account of those activities and go to the Central Government, which must lay it before both Houses of Parliament soon after it is received. A member of the public can then see in Parliament's records what the Authority did that year.
How this compares with the Commissions
The accounting and audit machinery here is specific to the Central Authority. The District, State and National Commissions are staffed and run by their Governments under other sections. For the District Commission's staffing, see our article on sections 29-33.
What the sections leave out
- No amount of grant and no requirement that it be paid yearly.
- No time limit for preparing the statement of accounts, for audit, or for forwarding.
- No consequence for delay in laying the accounts or report before Parliament.
- No rule on whether a penalty collected goes to the Authority or to a fund.
Need help understanding how the Authority works?
These sections show how the Authority is financed and answerable to Parliament, but your own dispute will turn on other parts of the Act. If you are unsure where to start, we can map your situation to the right section and forum. Reach out for a legal consultation and bring a summary of what has happened.
Key takeaways
- Grants come from the Central Government after Parliament makes an appropriation by law (25).
- The Authority keeps proper accounts and prepares an annual statement in the prescribed form, in consultation with the CAG (26(1)).
- The CAG audits the accounts, and the Authority pays the audit cost (26(2)).
- Certified accounts and the audit report go to the Central Government and are laid before each House of Parliament (26(4)).
- An annual report on activities goes to the Central Government and is laid before Parliament (27).
Read next
- Sections 23-24: designated regulators and appeal against CCPA orders
- Section 28: establishment of District Consumer Commission
- Sections 11-14: CCPA members, staff and procedure
- Central Consumer Protection Authority (CCPA)
Disclaimer: Based on the Consumer Protection Act, 2019 as enacted, as consulted on 1 October 2026. Monetary limits, fees and procedure are set or revised by rules and regulations made under the Act and should be checked in their current form. This article is general information, not legal advice; check the official text before acting.