Ameerpet’s Sitara Hotel fined for charging Rs 30 extra on cold drinks

Hyderabad District Consumer Disputes Redressal Commission has directed Sitara Multicuisine & Family Restaurant, Ameerpet to pay Rs. 20,000 compensation to a consumer for charging Rs. 30 extra for two cold drink bottles.

In its May 31 judgment, the consumer commission said the restaurant provides services to draw customers. “They cannot charge more than the MRP which will be a sheer violation of the settled provisions of law,” observed the commission.

“Charging beyond the printed MRP in the name of providing amenities and services is not justified and amounts to unfair trade practice,” it said.

The case

In March 2021, Pakolu Naresh, a Borabanda resident, and his friends visited Sitara Multicusine & Family Restaurant for lunch. Naresh ordered two servings of Chicken Biryani, two 300ml Thumbs-up bottles, one 1-liter mineral water bottle, and one serving of Kaju Paneer Biryani.

After finishing their meal, the restaurant presented Naresh with a bill amounting to Rs. 977. To Naresh's surprise, the bill included a charge of Rs. 40 for each cool drink bottle, exceeding the MRP of Rs. 25 per bottle.

Naresh expressed his shock and inquired about the additional charges. The restaurant staff justified the higher price, stating that it was their regular selling price. Later, Naresh lodged a complaint via email to the Legal Metrology Department. However, no action has been taken to address the issue as of today.

Subsequently, the Department of Consumer Information Centre issued a legal notice to the restaurant. Unfortunately, the restaurant did not respond or attend any counseling sessions.

“They are still charging more than the MRP thereby looting and deceiving their customers,” said Naresh in his complaint.

Naresh expressed his dissatisfaction with the restaurant's practice of charging an additional amount beyond the prescribed MRP. He claimed that when customers raised concerns about this issue, the restaurant staff responded in an inhumane manner, causing distress to its patrons.

Despite receiving notices and summons from the Commission, the restaurant failed to appear. Consequently, the Commission proceeded with the case ex-parte, as the restaurant did not present its side.

Commission’s observation

The commission observed that Maximum Retail Price (MRP) is the higher price at which a product can be sold. “According to the Legal Metrology (Packaged Commodities) Rules, 2011, no retail dealer or other person including manufacturer, importer, and wholesale dealer shall make any sale of any commodity in packed form at a price exceeding the retail sale price thereof. This aforesaid rule covers all retail dealers and other persons and does not exclude hoteliers or restaurants,” it observed

Referring to the judgments of the National Consumer Dispute Redressal Commission (NCDRC) and the State Consumer Dispute Redressal Commission(SCDRC), the district commission said that there can not be two MRPs except in accordance with the law.

“A service provider cannot charge an amount more than MRP,” said the commission.

The commission asked the restaurant to return the extra collected amount of Rs.30 and pay Rs.20,000 to the complainant for causing mental agony and suffering. The commission also asked to pay Rs 2,000 for the cost of the litigation.