The Chandigarh SCDRC ordered the restaurant to refund Rs 25 charged above MRP and pay Rs 3,000 compensation, holding that clean drinking water is a basic necessity and profiteering from it undermines consumer welfare and public interest principles nationwide.
CHANDIGARH: The Chandigarh SCDRC directed a restaurant to refund Rs 25 the excess amount charged over the MRP and to pay Rs 3,000 as compensation for mental harassment and for indulging in unfair trade practices.
Emphasising that access to clean drinking water is a basic necessity of life, the Commission remarked that profiteering from it runs contrary to consumer welfare and public interest.
On December 12, 2023, a woman dining at a restaurant in Chandigarh noticed an unusual charge on her dinner bill. While the total amount came to Rs 1,922, inclusive of CGST and UTGST, a single item drew her attention a Rs 55 charge for a bottle of packaged drinking water. The bottle, an Aquafina, clearly carried a printed MRP of Rs 20, inclusive of all taxes.
Surprised by the overpricing, the woman filed a complaint. After the district consumer commission dismissed her plea, the complainant, Smt. Khanna, took the matter to the Chandigarh State Consumer Disputes Redressal Commission (SCDRC), where she argued her case in person.
During the proceedings, the restaurant’s counsel defended the higher price by citing expenses related to air conditioning, seating arrangements, ambience, and overall service. According to the restaurant, these overheads justified charging a premium on items served within its premise.
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The Chandigarh SCDRC firmly rejected this explanation. The Commission held that although restaurants may set prices for food prepared and served by them, this discretion does not extend to pre-packaged goods such as bottled water that already display a maximum retail price.
Referring to the Legal Metrology (Packaged Commodities) Rules, 2011, the Commission reiterated that the MRP represents the highest permissible price at which a packaged product may be sold. This price already factors in taxes, packaging costs, and retailer margins.
Charging more than the printed MRP is a clear violation of the law, regardless of whether the product is sold in a shop or inside a restaurant,
The Commission observed that while all other food items were billed according to the menu, only the water bottle was sold above its MRP. This selective overcharging amounted to an “unfair trade practice” under the Consumer Protection Act, 2019.
It further noted that GST was levied again on the inflated price of the water bottle, even though taxes were already included in the MRP, thereby causing additional loss to the consumer.
the Chandigarh SCDRC directed the restaurant to refund an amount of Rs 25 the excess amount charged over the MRP and to pay an amount of Rs 3,000 as compensation for mental harassment and for indulging in unfair trade practices. The restaurant was instructed to comply within 30 days of receiving the order, failing which interest would be levied.
The decision serves as a clear reminder that restaurants cannot charge more than the printed MRP for packaged products like bottled water, irrespective of ambience, service, or dining experience.
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