State officials fear SC order on MRP could be misused

Indian Hotel and Restaurant Association president Adarsh Shetty has welcomed the decision of the Supreme court.

Update: 2017-12-20 00:59 GMT
Supreme Court of India. (Photo: PTI)

Mumbai: The Supreme Court order allowing hotels and restaurants to charge for services apart from the maximum retail price (MRP) of packaged drinking water bottles will affect malls, cinema halls and dhabas on highways. There would no control on the price of cold drinks, ice creams or any other packed food items, said government sources. State food and civil supply minister Girish Bapat told The Asian Age, “The government will study the order and will take necessary steps before January 1.” The government will take action against practice of dual MRP of the product as per provisions made in the Centre’s Act.

The Supreme court has allowed restaurants to charge more than MRP if they are providing any service. The state government officials fear that malls, cinema halls, dhabas on highways will take undue advantage of Supreme Court order. The officials believe that they will claim that they are providing special service at that particular venue and charge more. This order will apply to water bottles, cold drinks, ice creams and all other packed food items.

“We will take action against restaurants and shopkeepers who are charging dual MRP for one product which is not permissible under the provisions of new Central government act,” said an official from the state government

Indian Hotel and Restaurant Association president Adarsh Shetty has welcomed the decision of the Supreme court.

However, Mr Shetty clarified that “Restaurants will not charge more than MRP at parcel counter. If restaurants are providing service, then they can charge more. When customer orders for a water bottle in a restaurant, hotel boy serves it in a glass. Now we have to calculate a price of rent of premises, expenses on furniture, water, and other expenses. So we have to charge more than MRP. Around Rs 5-10 above MRP is reasonable, more than that is unfair.”

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