₹20 more on MRP results in Rs 20K fine for Sarvi Banjara hills

18 months over but see Justice for the consumer with 20k award. Will you do that?

  • Yep.. Why not.. These type of practices cannot go on!

  • Nope.. I have lots of valueless money to burn!


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swatkats

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The next time a restaurant overcharges you on MRP for a water bottle or a soft drink, keep the bill safe with you so that you could drag them to court. Few might consider this a pun, but this recent incident of Hyderabad sets as a reminder that overcharging on water bottles is, in fact, an ‘unfair trade practice’

On account of unfair trade practice, Sarvi Hotel located in Banjara Hills, Hyderabad was asked to pay Rs 20,000 to a customer by the District Consumer District Redressal Forum-II for charging double rates for a bottle of mineral water on MRP.
all-in cost involved in a financial transaction.

Matter

Mr Ch. Kondaiah, a resident of Prakasam district of Andhra Pradesh had lunch at Sarvi Hotel located in Banjara Hills, Hyderabad on 27 July 2015. As reported by The Hindu, He was charged double the amount for a water bottle which had an MRP of Rs 20. Mr Kondaiah questioned the manager of the hotel, and on being asked, Manager claimed that charging over the MRP rate was a general practice.
all-in cost involved in a financial transaction.


District Forum

Mr Kondaiah moved to the district forum’s door with a complaint against Sarvi Food Court. In its defence, the food court quoted that as per the Principles of Hospitality Law authored by Alan Pannett and Michael John Boella, a customer is bound to pay the charges mentioned in the menu card and also the customer cannot claim that he was overcharged.

The management of the hotel also told the forum that Mr Kondaiah had enjoyed the ambience of their hotel and he is not entitled to claim any redressal. The management also stated that there was no evidence established that Mr Kondaiah visited the restaurant on the said date and the bill could have been picked up from any place.

Law violation

After scrutinising the entire set of evidence, the forum noted that Mr Kondaiah had visited the restaurant on July 27, 2015. The panel established that the hotel is entitled to fix any price and maintain the menu card for the food products prepared by the hotel, but in no way, they have the authority to charge above MRP rate for packaged goods.

The forum ruled out that the hotel had violated the Legal Metrology Rules 2011 and directed the hotel to pay Rs 20,000 to Mr Kondaiah. The panel also stated that the hotel would pay back Rs 20 which was collected in excess and another Rs 5,000 as an all-in cost involved in a financial transaction.

Legal Metrology Rules, 2011

As per the Legal Metrology Rules, 2011, pre-packed commodity means a commodity without the purchaser being present. It is placed in a package of whatever nature whether opened or sealed. The commodity contained has a predetermined value and includes those goods which can be taken out of the package for examining or testing or inspecting the commodity.
It is an offence if the dealer over charge it and the trader can also be prosecuted.

The Logical Indian appreciates the ruling taken by the District Forum and request every individual to be vigilant when buying any packaged product. If the shopkeeper charges you more than the MRP, then he can be prosecuted. We as citizens need to file more such cases and raise this issue, so restaurants stop overcharging their customers.

Source: https://thelogicalindian.com/story-feed/awareness/overcharging-on-water-bottle/
 
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It's awesome that the consumer courts are doing something about this, but how many people would actually bother with litigation over a few bucks? this is exactly the attitude that these cheating $#%$^&@ are taking advantage of. Not to mention the manufacturers themselves have higher printed mrp on their packaging for different vendors. And most people will just go by this and not object to it. Case in point, the Subways here have 200ml tropicanas with a printed mrp of Rs. 70 when it is actually 20. I just don't buy it from them, i don't really have the patience to sue them over this.

the dept. of legal metrology is ever ready to fine a merchant for overcharging above the mrp. but when the printed mrp itself is more, then this is a tricky issue.

the govt. should just outlaw differential pricing, going to court on a per case basis actually doesn't cost the vendors as much as they rake in in profits. btw, no bar would ever serve beer at mrp, this i'm pretty sure of. dunno how that would be handled. also, the law they've applied is about packaged goods. but if the restaurant serves it in a glass in their premises, couldn't they argue that it is different from taking it away or buying it from a store.

p.s. vat is 5% and ser. tax is 6% in that bill. also, don't see sbc/kkc anywhere. you were saying something else in the other thread...
 
p.s. vat is 5% and ser. tax is 6% in that bill. also, don't see sbc/kkc anywhere. you were saying something else in the other thread...
5% Vat and 6% service tax. This is a standard norm amongst bar and restuarant.
 
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Dude, that is service tax in the bill. Dunno why you're confusing tax and charge. Service charge is internal to the restaurant and you can ask them to waive it off if you don't want to pay it for whatever reason. You cannot avoid paying vat or service tax.
 
I'm interested to know what you plan to do with Vijay Gopal.

Honestly, i'm at this point in my life when i'm tired of constantly fighting for justice or even basic decent humanity in my country. Everyone else seems to just lie back and take it and they expect me to do the same. Like my shouting for the right things is somehow bothering their panacea. There were times when I would argue over a couple of bucks not because I'm a miser (quite the opposite really) but because it felt wrong to be ripped off, that too to my face. These days i'm like whatever, i don't mind losing a few bucks, i just don't have the energy or patience anymore.
 
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