Madurai restaurant charges Rs 3 more than MRP, fined Rs 65,000

The petitioner had stated that he was charged Rs 25 for a milk bottle, produced by a Madurai-based food product manufacturer,  although its MRP was Rs 22.
Image used for representational purpose only
Image used for representational purpose only

MADURAI: The District Consumer Disputes Redressal Forum (DCDRF) has slapped a fine of Rs 15,000 and punitive damages to the tune of  Rs 50,000 on a city-based restaurant that sold flavoured milk for a rate higher than the Maximum Retail Price (MRP).

One Arasaradi S Sumesh, in his petition, stated that he had purchased a 200-millilitre bottle of flavoured milk from Pechiamman Milk Depot Restaurant, Palanganatham in April 2016. He paid Rs 25 for the milk bottle, produced by a city-based food product manufacturer,  although its MRP was Rs 22.

During the hearing at the consumer disputes redressal forum,  the restaurant, in its written reply, stated that it was a well-furnished restaurant providing hygienic food and was equipped with modern amenities. It further argued that it was a class restaurant that spent huge money towards maintenance and that it had to charge extra for items such as milk to meet the expenses incurred in servicing the refrigerator used to store the food and beverage.

The forum, however, ruled that the restaurant was not entitled to collect a price higher than the MRP, as it amounts to "unfair trade practice".

Passing the order, the forum directed the restaurant to discontinue the unfair trade practice of charging more than the MRP and to refund the additional Rs 3 collected from Sumesh.

Also, the DCDRF slapped a fine of  Rs 15,000 as compensation for the mental agony caused by the restaurant and directed it to deposit Rs 50,000 as punitive damages in the 'State Consumer Welfare Fund'. The Forum further directed the restaurant to pay Rs 3,000 as cost charges, all payable within six weeks. 

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com