"Restaurant Fined Rs. 7,000 For Charging Above MRP And GST On Beverages," Rules Consumer Disputes Commission

A consumer disputes redressal commission in Tumakuru has imposed a fine of ₹7,000 on a restaurant for charging prices above the maximum retail price (MRP) and adding Goods and Services Tax (GST) to beverage bills. The commission, comprised of President GT Vijayalakshmi and members Kumara N and Nivedita Ravish, ruled that selling packaged commodities above the retail price is prohibited according to the Legal Metrology (Packaged Commodities) Rules, which applies to restaurants as well.

In its September 21 order, the commission emphasized that the rules do not exempt restaurants and stated, "There cannot be two MRPs except in accordance with the law, and a service provider cannot charge an amount more than the MRP." 

The case arose from a customer's complaint about being charged an amount exceeding the MRP plus 5% GST for a bottle of water and a bottle of Sprite, resulting in a total cost of ₹24.14 per bottle, despite each having an MRP of ₹20. 

Notably, the restaurant failed to appear before the commission despite receiving notices from both a lawyer and the commission itself. As a result, the commission ruled that the restaurant was obligated to pay ₹3,000 as litigation expenses and ₹4,000 for the mental distress suffered by the complainant, noting that the complainant had to approach the Commission due to the restaurant's actions.

Author: Anushka Taraniya

News Writer, MIT ADT University