HC Allows Hotels To Charge More Than MRP

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New Delhi, Nov 11: : A bottle of mineral water for Rs 20; a cold drink and a pack of cigarette for Rs 60 — all is fair as far as the hotel and restaurant industry goes, thanks to a recent Delhi high court order which has given a go-ahead to them to charge more than the maximum retail price (MRP).

The court has stayed the order of the Centre on MRP and allowed hotels to charge more than the MRP. Major hotel and restaurant chains had moved the court earlier this year, complaining about the Centre’s move to enforce a ban on charging more than the MRP.

“We have been able to obtain a stay order from the Delhi HC on selling packaged products like bottled water, soft drinks, cigarette and other packages in hotel and prices at prices not higher than the MRP,” says Shyam Suri, secretary-general, Federation of Restaurant and Hotels Association of India.

The association had filed a writ petition saying that the rule 23(2) of the weights and measures rules of 1997 does not apply to hotels and restaurants. The rule says retailers, wholesalers and others will not sell any packaged product at a price higher than the MRP.

“The association had also applied for a stay, restraining the two respondents, secretary, department of consumer affairs and controller of weights and measures, Delhi, from applying the MRP rule to hotels and restaurants.