Restaurant Fined Rs 1 Lakh for Overcharging Rs 2 on Water Bottle MRP

In a strict ruling that highlights the power of consumer rights, a well-known restaurant has been ordered to pay a hefty fine of Rs 1 lakh for overcharging a customer by just two rupees on a packaged water bottle. The Consumer Disputes Redressal Commission took strict ex-parte action against the establishment after it failed to respond to multiple legal notices.

The Dispute Over Two Rupees

According to the case details, a customer purchased a bottled water container from a prominent restaurant. While the printed Maximum Retail Price (MRP) on the bottle was Rs 18, the restaurant billed the customer Rs 20 and additionally levied GST on the inflated amount. When the customer raised an objection and demanded a refund of the extra money, the management flatly refused and arrogantly argued that a larger luxury hotel would have charged at least Rs 50 for the same item.

Dismayed by the unfair trade practice and the arrogant behavior of the staff, the customer served a legal notice through counsel. When the restaurant management ignored the notice and failed to rectify their error, the aggrieved consumer approached the district consumer forum for justice.

Consumer Forum's Strict Ruling

During the proceedings, despite receiving repeated summons and notices from the commission, no representative or owner from the restaurant appeared before the court to present their defense.

Taking a serious view of the blatant disregard for consumer protection laws and the absence of the defendants, the commission delivered an ex-parte judgment. The restaurant was penalized with a fine of Rs 1 lakh to be deposited in the District Consumer Welfare Fund. Furthermore, the forum ordered the establishment to pay Rs 5,000 toward legal fees and Rs 1,000 as compensation for mental harassment, taking the total penalty to Rs 1,06,000. This landmark decision serves as a stern warning to businesses engaging in arbitrary overcharging above the MRP.