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Can restaurant charge more than MRP ?


14-Jun-2024 (In Consumer Court Law)
Can restaurants charge more than MRP? I was charged 60rs for 20rs bisleri bottle. When I raised this issue before concern management, they said they're allowed to do it after Supreme Court judgment in February this year. I want to know your legal advice in this case. Can I file a case against them at District consumer forum? If I can, on what grounds after Supreme Court judgment?
Answers (5)

Answer #1
428 votes
In India, while retailers are prohibited from selling goods above the MRP, restaurants and hotels are an exception due to the Supreme Court's ruling.

  • Supreme Court Ruling (2017): Restaurants and hotels can charge more than the MRP on packaged goods like bottled water, soft drinks, etc.

  • The rationale is that they provide value-added servicessuch as:

    • Air-conditioned seating

    • Service by staff

    • Use of cutlery and crockery

    • Ambience and amenities

  • Therefore, the transaction is not just a sale of goods, but a composite service.

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Advocate Chikirsha Mohanty

Adv. Chikirsha Mohanty

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Answer #2
545 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.
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Answer #3
784 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.
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Advocate Sahej Uban

Adv. Sahej Uban

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Answer #4
877 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
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Answer #5
620 votes
Firstly any court doesn’t allow in restaurant or cafes to charge more than the MRP . Yes you can fill the case in consumer forum on the grounds of misleading the costumer by not clearly mentioning the pricing above MRP Collect all the evidence of the pricing and contact us
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Advocate Rinki

Adv. Rinki

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