Pointing out that charging over the MRP violated the Legal Metrology (packaged commodities) Rules 2011, the Forum directed the eatery to pay ₹20,000 to the petitioner “towards damages for making illegal enrichment by charging excess amount from complainant/customers.” The eatery was also asked to pay Kondaiah the ₹20 collected in excess and another ₹5,000 in costs.
In March, Food and Consumer Affairs Minister Ram Vilas Paswan said the consumer forum had received complaints that mineral water bottles were being sold at prices above the MRP —the price printed on the product labels differed at airports, hotels and malls. He directed all establishments to comply with the laws and sell packaged mineral water only at the maximum retail price.
While this happened in March, three days ago, passing a judgement on a special leave petition filed by the Federation of Hotel and Restaurant Associations of India (FHRAI) against the Union of India, the apex court took a different stand.
It said that when hotels and restaurants sell food and drinks, they also render a service, making it a composite transaction with composite billing. Therefore, MRP rates cannot be insisted upon for such entities.
In saying this, the Supreme Court held that restaurants rendering a service cannot be governed by the Legal Metrology Act.
The court said the provisions of the Act would not apply to hotels, and they cannot be prosecuted for selling products above MRP. “It is not a case of a simple sale,” the bench said.
“Nobody goes to a hotel to buy or take away a bottle of mineral water.”
Source: https://www.thebetterindia.com/124340/restaurants-mrp-bottled-water/
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Hotels happy, foodies fume over SC ruling on bottled water MRP
“It clears the air as there were multiple interpretations of multiple laws by multiple courts. This will stop all squabbles in restaurants over water bottle prices,” said Ravikanth Reddy, founder of Foodies In Hyderabad-Reloaded and an entrepreneur when asked about his reaction to the development.
Foodie groups on social media, however, are awash with debates on appropriate pricing. Consumer activist Vijay Gopal says, “We will wait for the government’s reaction. If it files a review petition, then it is fine. Otherwise, we will. This decision will be challenged since none from public domain fought the case; only the government and restaurant association were involved.”
Source: http://www.thehindu.com/todays-pape...ling-on-bottled-water-mrp/article21617611.ece
Supreme court will eat crow after a few days.
In March, Food and Consumer Affairs Minister Ram Vilas Paswan said the consumer forum had received complaints that mineral water bottles were being sold at prices above the MRP —the price printed on the product labels differed at airports, hotels and malls. He directed all establishments to comply with the laws and sell packaged mineral water only at the maximum retail price.
While this happened in March, three days ago, passing a judgement on a special leave petition filed by the Federation of Hotel and Restaurant Associations of India (FHRAI) against the Union of India, the apex court took a different stand.
It said that when hotels and restaurants sell food and drinks, they also render a service, making it a composite transaction with composite billing. Therefore, MRP rates cannot be insisted upon for such entities.
In saying this, the Supreme Court held that restaurants rendering a service cannot be governed by the Legal Metrology Act.
The court said the provisions of the Act would not apply to hotels, and they cannot be prosecuted for selling products above MRP. “It is not a case of a simple sale,” the bench said.
“Nobody goes to a hotel to buy or take away a bottle of mineral water.”
Source: https://www.thebetterindia.com/124340/restaurants-mrp-bottled-water/
--------------
Hotels happy, foodies fume over SC ruling on bottled water MRP
“It clears the air as there were multiple interpretations of multiple laws by multiple courts. This will stop all squabbles in restaurants over water bottle prices,” said Ravikanth Reddy, founder of Foodies In Hyderabad-Reloaded and an entrepreneur when asked about his reaction to the development.
Foodie groups on social media, however, are awash with debates on appropriate pricing. Consumer activist Vijay Gopal says, “We will wait for the government’s reaction. If it files a review petition, then it is fine. Otherwise, we will. This decision will be challenged since none from public domain fought the case; only the government and restaurant association were involved.”
Source: http://www.thehindu.com/todays-pape...ling-on-bottled-water-mrp/article21617611.ece
Supreme court will eat crow after a few days.