Rs 20,000 Fine For Charging Rs 20 More!!


That might sound like a funny news but in reality if people start revolting at the unusual pricing that are being undertaken by so many food joints in cities like Hyderabad, then the practise of exploiting customers with over-pricing will surely come down.

Way back on 27th July, 2015, Hyderabad based Sarvi Hotel, Banjara Hills has charged ₹ 40 from a customer named Ch. Kondaiah for a water bottle whose MRP is ₹ 20. When he questioned about the same, the hotel said it’s customary for most luxury hotels to charge that way. Of course, it’s true, but it is illegal.

When Kondaiah approached District Consumer Disputes Redressal Forum II to take action against the food court, the management of food court quoted ‘Principles of Hospitality Law’ and claimed that a customer should not claim he’s overcharged for the price that is mentioned in menu already. Also they stated that Kondaiah has to pay for the ambience.

Later when the forum is not happy with the hotel’s reply, Sarvi also claimed that Kondaiah never visited their place and that bill was picked from someone else. However Kondaiah showed all proofs that he indeed visited the place and had food on that fateful day. The Forum finally stated that Sarvi Hotel could fix any rate for the food items they have prepared, but for not the packaged products that already have a fixed MRP.

Due to violating Legal Metrology (packaged commodities) Rules 2011, the forum directed Sarvi to pay ₹20,000 to Kondaiah towards damages and also another ₹ 5000 for other costs. Also the hotel (food court) is ordered to give back the excess ₹ 20 they have collected from him.