CHANDIGARH, Jan 10 – The State Consumer Disputes Redressal Commission (SCDRC) has ruled that restaurants cannot charge more than the Maximum Retail Price (MRP) for pre-packaged items, regardless of the service or dining environment provided.
The decision follows a complaint by a local resident, Smt. Khanna, who was charged ₹55 for a bottle of Aquafina water that carried a printed MRP of ₹20 during a dinner in December 2023. While a lower commission initially dismissed the complaint, the SCDRC overturned that view after the complainant argued her own case.
“The Maximum Retail Price is the highest price at which a packaged product can be sold, as it already includes all taxes, packaging expenses, and retailer margins,” the Commission stated in its ruling. It clarified that while establishments have the freedom to price their own menu items, that liberty does not extend to third-party packaged commodities regulated by the Legal Metrology Rules.
During the proceedings, the restaurant defended the markup by citing operational costs, including air conditioning, seating, and general ambience. The Commission rejected this justification, noting that selling a product above the printed price constitutes an unfair trade practice under the Consumer Protection Act, 2019. The court further observed that the restaurant had incorrectly applied GST to the already inflated price, despite taxes being included in the original MRP.
In its final order, the SCDRC directed the restaurant to refund the excess ₹35 to the consumer and pay ₹3,000 as compensation for mental harassment. The ruling emphasizes that clean drinking water is a basic necessity and that overcharging for it remains against the public interest.
The restaurant has been given 30 days to comply with the order, after which interest will be applied to the penalty amount.
