Sections 95 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.
Three short housekeeping sections in Chapter VIII (Miscellaneous). Section 95 deems the members, officers and staff of the Commissions and the Central Authority, and other persons performing duties under the Act, to be public servants. Section 97 says penalties and compounding sums are credited to a prescribed fund. Section 98 protects those persons from suits and prosecutions for acts done in good faith. Section 96, on compounding, has its own article. If you work with a Commission or the Central Authority, or are affected by one of their actions, our legal consultation team can help you read these sections.
Section 95: the Presidents and members of the Commissions, their officers and employees, the Chief Commissioner, Commissioner, Director General and other officers of the Central Authority, and other persons performing any duty under the Act, are deemed to be public servants within the meaning of section 21 of the Indian Penal Code. Section 97: the penalty collected under section 21 and the amount collected under section 96 are credited to such fund as may be prescribed. Section 98: no suit, prosecution or other legal proceeding lies against them for any act done in good faith, or intended to be done, in pursuance of the Act, or any rule or order under it.
The three sections at a glance
| Section | Subject | Key point |
|---|---|---|
| 95 | Deemed public servants | Named office-holders and others performing duties while acting or purporting to act under the Act |
| 97 | Crediting of penalty | Section 21 penalty and section 96 amount go to a prescribed fund |
| 98 | Good faith | No suit, prosecution or other legal proceeding for acts done in good faith |
Section 95: deemed public servants
"The Presidents and members of the District Commission, the State Commission and the National Commission, and officers and other employees thereof, the Chief Commissioner and the Commissioner of the Central Authority, the Director General, the Additional Director General, the Director, the Joint Director, the Deputy Director and the Assistant Director and all other officers and employees of the Central Authority and other persons performing any duty under this Act, while acting or purporting to act in pursuance of any of the provisions of this Act, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code."
| Group | Included by name |
|---|---|
| Commissions | Presidents and members of the District, State and National Commissions; their officers and other employees |
| Central Authority | Chief Commissioner, Commissioner, Director General, Additional Director General, Director, Joint Director, Deputy Director, Assistant Director, and all other officers and employees |
| Others | Other persons performing any duty under the Act |
Points to read carefully:
- "While acting or purporting to act". The status applies when they act, or claim to act, under the Act. "Purporting to act" extends the protection to acts that look like acts under the Act.
- A deeming provision. The status is "deemed". The section does not otherwise change the position of these persons.
- "Other persons performing any duty under this Act". This is open-ended; a mediator, an expert directed to assist under section 66 or an empanelled person may or may not fit. The text does not list them.
- Indian Penal Code. The Act refers to section 21 of the Indian Penal Code, 1860. From 1 July 2024 the Indian Penal Code was replaced by the Bharatiya Nyaya Sanhita (BNS). This article gives no new section number.
- Why it matters. The text does not say what follows from being a public servant. The deeming brings these persons within the meaning used in the Indian Penal Code; the consequences are in that Code and in other laws, not in this section.
Section 97: where penalties go
"The penalty collected under section 21 and the amount collected under section 96 shall be credited to such fund as may be prescribed."
- Two sources. (1) The penalty collected under section 21, which concerns false or misleading advertisements, and (2) the amount collected under section 96, which is the sum paid to compound offences. See section 96 on compounding of offences.
- "Such fund as may be prescribed". The Act does not name the fund. The rules fix it. Section 101(2)(zi) lists "the fund to which the penalty and amount collected shall be credited under section 97" as a rule-making head, and this article names no fund.
- What it does not cover. Fines imposed by a court for the offences in sections 88 to 91 are not mentioned in section 97. Nor are the amounts credited under section 39(2), which has its own rule-making head in section 101(2)(u). The text of section 97 is silent about them.
- Not the consumer welfare fund. Our existing post on the Consumer Welfare Fund deals with the fund under the CGST Act and is not about this section.
Section 98: protection of action taken in good faith
"No suit, prosecution or other legal proceeding shall lie against the Presidents and members of the District Commission, the State Commission and the National Commission, the Chief Commissioner, the Commissioner, any officer or employee and other person performing any duty under this Act, for any act which is in good faith done or intended to be done in pursuance of this Act or under any rule or order made thereunder."
| Element | Text |
|---|---|
| Who is protected | Presidents and members of the three Commissions, the Chief Commissioner, the Commissioner, any officer or employee and other person performing any duty under the Act |
| What is barred | Suit, prosecution or other legal proceeding |
| For what | Any act done in good faith, or intended to be done in good faith, in pursuance of the Act, or of any rule or order made under it |
- The key condition is good faith. The section protects an act "in good faith done or intended to be done". An act not done in good faith is outside the words. The Act does not define good faith in this section.
- Wide forms of proceeding. "Suit, prosecution or other legal proceeding" covers civil and criminal action.
- Rules and orders. The act may be in pursuance of the Act or "any rule or order made thereunder".
- Lists differ slightly. Section 95 names officers of the Central Authority by rank, while section 98 names the Chief Commissioner and the Commissioner, "any officer or employee" and "other person performing any duty". The wording is not identical, and the text does not explain why.
- Link with section 93. Section 93 punishes an officer who searches or seizes knowing there are no reasonable grounds. The text does not say how it sits with section 98; see sections 92–93 on vexatious search.
Example. A District Commission member passes an order in a complaint. The losing party files a suit against the member personally, claiming the order was wrong. Section 98 bars a suit for an act done in good faith in pursuance of the Act. The party's remedy is the appeal provided by the Act.
What the text leaves out
- Government liability. Section 98 bars proceedings against the persons named. It does not say whether the Government is similarly protected.
- Burden. It does not say who proves good faith.
- Fund details. The fund for section 97 is not named, and the text does not say how it is to be used.
- Section 96. Compounding is described in its own article; section 97 only refers to the amount collected.
Need help understanding who is protected or where penalties go?
These sections are rarely the subject of a dispute, but they matter when an officer's action is challenged or when a penalty has been collected. Our team can read the text against your situation. Start with a legal consultation and bring the order or notice in question.
Key takeaways
- Section 95 deems named office-holders and others performing duties under the Act to be public servants under section 21 of the Indian Penal Code.
- Section 97 credits the section 21 penalty and the section 96 amount to a fund as prescribed.
- Section 98 bars suits, prosecutions and other proceedings for acts done in good faith in pursuance of the Act.
- Good faith is the condition for the protection in section 98.
- The fund under section 97 is not named in the Act.
Read next
- Sections 92–93: cognizance of offences and vexatious search
- Section 96: compounding of offences
- Sections 99–100: Central Government directions and Act not in derogation
- 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.