Mumbai Grahak Panchayat Celebrates Golden Jubilee: From 1975 Gudhi Padwa Initiative To ₹90 Crore Consumer Movement

Way back in 1975 it was on this 12th April, on the auspicious Gudhi Padva day, a handful of social activists led by a trio Bindu Madhav Joshi, Madhu Mantri and famous singer & music director Sudhir Phadke initiated a community project of collective buying of grocery for middle class families.

The trio encouraged middle class families reeling under inflationary sky rocketing prices of essential commodities to unite together by forming Grahak Sangh of minimum 25 families. These Grahak Sanghas decided to procure their essential grocery collectively from the producers/wholesalers eliminating the retailer and distribute the same to the member families every month on “No Loss, No Profit” basis.  

This direct collective buying and distribution of grocery gave them handsome savings in their monthly grocery budget. It ensured only good quality products preventing any adulteration or substandard products. No wonder this model grew phenomenally in next few years.

As this community project grew significantly the trio decided to institutionalize the same in the name of Mumbai Grahak Panchayat (MGP), which is a registered as a membership consumer organization under Public Charitable Trust Act. 

Over last 50 years besides Mumbai, MGP has spread its wing to Thane, Palghar, Vasai, Raigad and Pune with 6 warehouses at these locations with around 30,000 families as its members in about 2700 Grahak Sanghas with an annual turn over of around Rs 90 crores. 

During last 50 years MGP has emerged as a credible voice of consumers at state, national and global level. It has several landmark cases to its credit. The low-profile MGP first came to lime light when it created history by securing refund of scooter deposits of Rs 40 crores in 1989 for  more than 4 lakhs consumers of LML company. MGP’s passionate efforts to secure relief to such large class of consumer also  resulted in Government amending Consumer Protection Act in 1993 to incorporate the provision of “class action” therein. 

MGP’s contribution in getting Real Estate Regulation Act (RERA)for Maharashtra  is worth recounting. When Maharashtra Government stoutly represented before the Parliamentary Committee that it didn’t need RERA since it had enacted Maharashtra Housing & Regulation Development Act, it was MGP who exposed anti-consumer provisions of the Maharashtra Housing Act before the Parliamentary Committee, suggested some further improvements in RERA and sought repeal of the Maharashtra Housing Act.

Much to the relief of consumers in Maharashtra, the Parliamentary committee recommended repeal of the Maharashtra Act and made RERA applicable to Maharashtra. After RERA became fully operational, MahaRERA accepted MGP’s suggestion to set up Conciliation Benches for simple and speedy dispute resolution.

Today 52 Conciliation Benches of MahaRERA are functional providing a simple, inexpensive and effective dispute resolution for consumers in real estate sector where MGP Conciliators along with Conciliators of Developers’ bodies jointly attend to such disputes. 

MGP was instrumental in proposing review and revision of UN Guidelines for Consumer Protection (UNGCP) which were originally adopted in 1985. MGP’s one major suggestion has resulted in creation of a permanent oversight mechanism at UNCTAD to oversee effective implementation of UNGCP in developing countries. MGP is the only voluntary consumer body not only from India but  perhaps in the world which has been so actively engaged with UNCTAD in initiating measures of global consumer protection for last more than 10 years. 

How a consumer body like MGP has been able to make an impact on global consumer protection map? What’s the secret of this great impact? The answer lies in the dedicated team of honest, selfless and sincere volunteers of MGP. The answer also lies in financial self-reliance of MGP.

MGP derives its financial support only from its annual membership fees and  donations. MGP does not receive any grants or aid either from Government or from any overseas funding agency. MGP’s unique Grocery Distribution model  has made MGP financially sustainable. No wonder UNCTAD has showcased MGP as a model to be replicated to build a self-sustaining consumer body.