Sitara multi-cuisine restaurant asked to pay Rs 20K compensation for charging more than MRP

HYDERABAD: The District Consumer Disputes Redressal Commission directed Sitara Multi-cuisine and Family Restaurant in Ameerpet to pay a Hyderabad resident Rs 20,000 in compensation for charging him more than the maximum retail price (MRP) for cold drinks.

Pakolu Naresh, 30, of Borabanda, and his friends dined at Sitara multi-cuisine and family restaurant on March 7, 2021. They ordered two chicken biryanis, two 300-ml Thums Up cold drink bottles, a litre mineral water bottle, and one Kaju Panneer biryani. The eatery gave them a total cost of Rs. 977 after they finished their dinner.

He noted that the restaurant charged him Rs. 40 for each cold drink, despite the fact that they were just Rs. 25 each. The image of the bottle, on the other hand, indicates the maximum selling price of the bottle was Rs.25.

Naresh, who was shocked by the bill, questioned the restaurant staff about the additional charges instead than MRP, and the staff responded by stating that their restaurant sold cold drinks for the same price to all customers.

Disappointed with their response, he immediately alerted the Legal Metrology Department through email, but no action had been taken as yet, and he also filed a complaint with the District Consumer Information Centre on July 29, 2022.

The Department of Consumer Information Centre served the restaurant with a legal notice, but they did not attend single counselling either. The court observed that the restaurant was still charging more than the MRP, therefore looting and misleading their customers.

The restaurant's behaviour, according to the court, amounted to a lack of service and an unfair trading practise.

According to the Legal Metrology (Packaged Commodities) Rules, 2011, no retail dealer or other person, including a manufacturer, importer, or wholesaler, shall sell any commodity in packed form at a price greater than the retail sale price thereof.

The court ruled that the restaurant could not charge more than the MRP, which would be a clear violation of the law. Thus, charging more than the printed MRP in the guise of providing amenities and services was not justifiable and constituted unfair trade practise. Hence, the court gave judgement in favour of Naresh.

The court ordered the restaurant to pay back the extra Rs.30 collected on cold drinks and to pay Naresh Rs.20,000 in compensation for mental anguish and suffering caused by the restaurant.