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Overcharged for a drink at a restaurant? It's fair, rules Gujarat consumer forum

The restaurant, Pepperazzi in Vastrapur, had challenged the order in the case filed by a customer, Dr Vishwas Amin, alleging unfair trade practices

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Next time you walk into a fancy restaurant and order a packaged beverage (cold drink, mineral water, etc), don't grumble about the difference between the printed MRP and price you are asked to pay.

The Gujarat State Consumer Dispute Redressal Commission has set aside an order of the District Consumer Forum that asked a restaurant to deposit Rs 2.50 lakh in the consumer welfare fund in connection with a case of overcharging.

The restaurant, Pepperazzi in Vastrapur, had challenged the order in the case filed by a customer, Dr Vishwas Amin, alleging unfair trade practices. The customer was charged Rs 73 for a bottle of beverage that had an MRP of Rs 25. The incident took place while Amin was at the restaurant for dinner.

Setting aside the district forum's order, the state commission ruled in favour of the restaurant which had cited a Delhi High Court order in 2007 which was also upheld by the Supreme Court. The order was passed in favour of the Federation of Hotel and Restaurant Association that held that hotels and restaurants can levy additional charges for water and beverages.

The defendants also cited an earlier SC verdict that stated that food and beverages in restaurants were served by waiters, the place offered waiting facility and a host of other services, including an ambience. Thus the purpose of a hotel was not to sell a product but a service in a proper atmosphere.

The SC in its order had said that the price was not for the good but the convenience and enjoyment of the customers offered by the restaurant. In light of the SC order, the forum concluded that the extra charges imposed by a hotel depended on the type and class of the establishment. The court also said the price of the same product could be different at different restaurants.

THE CASE

  • The restaurant, Pepperazzi in Vastrapur, had challenged the order in the case filed by a customer, Dr Vishwas Amin, alleging unfair trade practices. The customer was charged Rs 73 for a bottle of beverage that had an MRP of Rs 25. The incident took place while Amin was at the restaurant for dinner
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