The Planning Commission has opposed setting up of a regulatory body ? Mail Regulatory Development Authority (MRDA)?by the department of posts (DoP) to regulate the courier companies. The plan panel feels there is no need for such a regulatory body.
The DoP has floated a draft Cabinet note on the Indian Post Office (Amendment) Bill, proposing exclusive privilege of conveying postal articles up to 150 gm by the India Post. It has said if the courier companies want to deliver such letters it would have to charge five times more than India Post rates and 2.5 times of speed post rates for urgent and mail express letters.
Further, it wants courier companies with annual turnover of Rs 25 lakh to get registered as service providers with the proposed MRDA and be regulated by it.
As reported by FE earlier, the Planning Commission is opposed to such reservation for the DoP on the grounds that it is anti-consumer and will lead to a monopoly of the DoP.
Opposing the formation of the MRDA, the Plan panel has said a regulator?s mission is to create and nurture conditions for the growth of healthy competition in the areas of business. ?Regulatory authority is normally established in case of existence of monopolistic situations coupled with immovable assets and to look after national interest. It does not deal with or for consumer protection.?
Further, the panel has said, ?While proposing for a establishment of the MRDA for the DoP, the purpose of MRDA should be made clear. In this case, the service providers are independent players and binding would be only for minimum charges, that too for the exclusive reserved area for the DoP. Outside the reserved area no binding is proposed to be imposed on the service providers. Hence the need for MRDA is not felt?.
The panel has also opposed formation of an appellate tribunal on the lines of the Telecom Disputes Settlement and Appellate Tribunal as proposed by the DoP. The DoP has stated the proposed tribunal would be for settlement of disputes between the Central or a state government or a local authority and a registered service provider; registering authority and registered service providers, and between registered service providers and a group of consumers.
However, nullifying the need of any such body, the Planning Commission has said the disputes are already settled in consumer courts under the Consumers? Protection Act. ?If there is any dispute between the central government or a state government or a local authority and a registered service provider, the same can be settled under the existing legal framework.?