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Section 74 of the Consumer Protection Act, 2019: Establishment of the Consumer Mediation Cell

The State Government shall establish, by notification, a consumer mediation cell attached to each District Commission and State Commission of the State (74(1)). The Central...

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Consumer Protection
Published
October 3, 2026
Last updated
Oct 3, 2026
Reading time
6 min
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Last updated: October 2026Verified against: Government sources

Section 74 opens the Chapter on mediation by creating the institution through which mediation takes place: a consumer mediation cell attached to each District Commission and State Commission (set up by the State Government) and to the National Commission and its regional Benches (set up by the Central Government). It says what the cell must keep and report. If a mediation reference is being considered in your dispute, our legal dispute resolution team can explain where it sits in the case.

Section 74 at a glance

Sub-sectionSubjectKey point
74(1)State cellsEstablished by the State Government by notification; attached to each District and State Commission of that State
74(2)Central cellsEstablished by the Central Government by notification; attached to the National Commission and each regional Bench
74(3)CompositionSuch persons as may be prescribed
74(4)What the cell maintainsFour items, including a catch-all for other information
74(5)Quarterly reportTo the Commission to which the cell is attached, in the manner specified by regulations

Section 74(1) and (2): who sets up the cells

"The State Government shall establish, by notification, a consumer mediation cell to be attached to each of the District Commissions and the State Commissions of that State." The words are "shall establish", so setting up the cell is a duty, not a choice.

"The Central Government shall establish, by notification, a consumer mediation cell to be attached to the National Commission and each of the regional Benches."

Cell attached toEstablished byHow
Each District CommissionState GovernmentBy notification
Each State CommissionState GovernmentBy notification
National CommissionCentral GovernmentBy notification
Each regional Bench of the National CommissionCentral GovernmentBy notification

Two reading points:

  • The cell is attached to a Commission. Each Commission has its own cell, so there is a link between the forum and the place where mediation occurs. Section 79(1) later says mediation "shall be held in the consumer mediation cell attached to" the Commission concerned. See sections 79–81 on mediation procedure and settlement.
  • "Regional Benches". The National Commission's Benches are mentioned here and in section 58(2). The text of section 74 does not say how many there are or where; that is not stated in the part of the Act this article covers.

Section 74(3): who is in the cell

"A consumer mediation cell shall consist of such persons as may be prescribed." The Act does not name the posts or the number. The rules fix the persons. Both the Central and State rule-making powers list this: section 101(2)(zf) for the Central Government and section 102(2)(p) for the State Governments. This article names no rule. For those rule-making heads, see section 101 on the Central Government's power to make rules.

Section 74(4): what the cell keeps

"Every consumer mediation cell shall maintain—"

ItemText
(a)A list of empanelled mediators
(b)A list of cases handled by the cell
(c)Record of proceeding
(d)Any other information as may be specified by regulations
  • (a) the panel. The panel of mediators is prepared by the Commission under section 75 and "maintained by the consumer mediation cell attached to it". See sections 75–78 on empanelment and duties of mediators.
  • (b) and (c) are the cell's own record: which cases came to it and what was done in them.
  • (d) is a catch-all. The regulations of the National Commission may specify other information; section 103(2)(c) lists it as a head of regulation-making. The regulations are not in the source text, so no further detail is given here.

Section 74(5): the quarterly report

"Every consumer mediation cell shall submit a quarterly report to the District Commission, State Commission or the National Commission to which it is attached, in the manner specified by regulations."

The report goes to the Commission to which the cell is attached. It is quarterly, so four times a year. The text does not say what the report must contain, only that the manner is specified by regulations (section 103(2)(d) lists this head). It also does not say whether the report is public, or whether the Commission must act on it.

Example. A State Government notifies a consumer mediation cell attached to the District Commission of a particular district. The cell keeps the district panel of mediators, a list of cases handled and the record of each mediation. At the end of each quarter, it sends its report to the District Commission in the manner set by the regulations.

What the text leaves out

  • Who runs the cell day to day is not stated; it consists of such persons as may be prescribed.
  • Where the cell sits is not said beyond being "attached to" the Commission.
  • Whether mediation is compulsory. Section 74 does not say; the reference to mediation is dealt with in section 37. See section 37 on reference to mediation.
  • Fees, forms and timelines are not in section 74. The Mediation Rules and Regulations made under the Act are not part of the source text, so this article does not describe them.
  • Cells for other bodies. The section covers the District, State and National Commissions; it does not mention the Central Authority.

Need help with mediation in a consumer dispute?

Mediation can settle part or all of a dispute, but it goes more smoothly when the issues and the documents are ready before the cell is approached. Our team can help you prepare your position and review any settlement terms. Begin with a legal dispute resolution consultation and bring the complaint and the Commission's reference order, if any.

Key takeaways

  • The State Government sets up cells for District and State Commissions; the Central Government for the National Commission and its regional Benches.
  • Each is established by notification, and "shall establish" makes it a duty.
  • The cell consists of persons as may be prescribed.
  • It maintains a panel list, a case list, records of proceeding and other information specified by regulations.
  • It submits a quarterly report to its Commission.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Section 74

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who establishes a consumer mediation cell?

The State Government for District and State Commissions, and the Central Government for the National Commission and each regional Bench (74(1) and (2)).

How is a cell established?

By notification.

Settle the facts first; the right section and the right form follow from them.

— TaxClue Compliance Desk

Section 74: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

The State Government for District and State Commissions, and the Central Government for the National Commission and each regional Bench (74(1) and (2)).

By notification.

Such persons as may be prescribed (74(3)).

A list of empanelled mediators, a list of cases handled, record of proceeding and any other information specified by regulations (74(4)).

Quarterly, to the Commission to which it is attached, in the manner specified by regulations (74(5)).

No. It only sets up the cell. Reference to mediation is in section 37.