Consumer welfare fund constituted by TS Govt

Hyderabad: The state government has constituted the TS Consumer Welfare Fund to strengthen consumer organisations and to create awareness regarding consumer rights at various levels.  The government will earmark 10 per cent of the Budget allotted to the department of consumer affairs for the welfare fund. Apart from this, contributions will be sought from oil companies, public sector undertakings, rice millers, NGOs and private industries. The fund will be utilised to extend financial assistance to promote the welfare of consumers, to protect them from exploitation and unfair trade practices, and to strengthen the consumer movement in the state.  It is a non-lapsable non-plan public account outside the consolidated fund. Any unspent amount from the year’s Budget will be returned to the account.

This fund will be operated by the Department of Consumer Affairs, Food & Civil Supplies. The state government has requested the Centre to gr-ant income tax exemptions on contributions made to the fund by individuals, institutions, or companies under Section 80 of the Income Tax Act. Any agency, organisation or institution engaged in consumer welfare activities for a period of at least three years and registered with the Registrar of Societies, or any other authority of the state or central government is eligible to claim financial assistance under the fund. Preference will be given to such organisations that have been working in rural areas or that have a greater proportion of women participants.

A consumer or organisation may be disqualified from availing of financial assistance if it refuses to furnish any information requested by the state government. It may also be disqualified if, after receiving financial assistance from the state government, it does not utilise it for the purpose specified and diverts it towards some other purpose.  Quarterly progress reports regarding the implementation of the programme or project for which funds have been released must be submitted to the government. The construction of buildings and the purchase of vehicles using these funds is strictly prohibited. The funds may not be used to finance any political party or political propaganda.