Can a restaurant charge a price more than the MRP

944 votes

The restaurant is correct as Supreme Court has ruled that the provisions of the Standards of Weights and Measures Act, 1976, the Standards of Weights and Measures (Enforcement) Act, 1985 and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 are not applicable to the sale of commodities such as packaged water in hotels and restaurants. The reasoning is that restaurants are not merely selling you something but also rendering a service, and they are correct in charging over and above the MRP for commodities such as packaged drinking water. The judgement was rendered in December, 2015 by a 2-judge bench on a special leave petition by the Federation of Hotel and Restaurant Associations of India.

Just to be clear, this exemption is only for hotels and restaurants for now.

LawRato LawRato

676 votes

Hi, they are right that a hotel/restaurant can now charge more than the MRP of packaged water as you get a bill from the hotel on the composite services provided to you and you do not go there only to buy a bottle of water. The Supreme Court held the same as the central laws governing the field has not been amended so far. What I gather from the factual background provided by you, there is no point going to the Consumer forum on this issue. Let me know if you need any further clarification.
Regards

Advocate Vikramaditya LawRato

611 votes

Hi,
Yes, the Hotel or restaurant can charge over and above the MRP, but i would like to see what sort of tax have been imposed over 60 Rs. For more information feel free to have a word with me. All the best.

Advocate Sahej Uban LawRato

129 votes

In India, restaurants and hotels can legally charge more than the Maximum Retail Price (MRP) for certain packaged goods, including bottled water and packaged beverages. This issue has been clarified by the Supreme Court of India.
The Supreme Court's ruling states that restaurants and hotels are not bound by the MRP when it comes to selling bottled water, packaged beverages, and other similar goods. Therefore, they have the discretion to set their prices for these items. This ruling is based on the understanding that when you consume these products in a restaurant or hotel, you are also paying for the service and ambiance, which justifies a higher price.
However, it's important to note that this ruling applies specifically to packaged goods, and not to items like fruits, vegetables, or other non-packaged items.
So, to answer your question, yes, restaurants and hotels can charge more than the MRP for packaged goods like bottled water, packaged beverages, and similar items. Customers are advised to confirm the prices for such items when dining out, as they may vary from one establishment to another.

Advocate Chikirsha Mohanty LawRato