Can restaurants charge above 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.

Why hotels are free to charge more than the MRP?

In 2017, a Supreme Court bench ruled that hotels and restaurants can sell bottled water and packaged food at higher than the MRP. The bench decided that the provisions of the law won’t apply to hotels and restaurants, and these establishments can’t be prosecuted for selling items above the MRP.

Can Restaurant charge more than MRP for water bottle?

The single bench of Justice R.F Nariman gave the judgment that, charging higher prices of packaged drinking water than that of the MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions as the customer does not only come to the hotel or restaurant …

Can restaurants charge MRP on pre-packaged products?

Restaurants cannot be told to sell pre-packaged products at just MRP as they render service while serving them, rules Supreme Court. The govt had threatened to prosecute hotels and restaurants, saying they should charge only the MRP on products such as bottled mineral water.

Is it illegal to charge more than the MRP?

You clearly understood that any price above the MRP is totally illegal. However, you find that few shops, restaurants or your own milkmen charge higher than the MRP. I will share my own experience.

Can hotels charge MRP on bottled mineral water?

The authorities, under the erstwhile Standards of Weights and Measures Act, had threatened to prosecute hotels and restaurants, saying they should charge only the MRP on products such as bottled mineral water. The FHRAI filed a writ petition in the Delhi High Court, challenging notices issued to them.

What is maximum retail price (MRP)?

Maximum Retail Price or MRP is the HIGHEST price at which the product can be sold in India. This includes the cost of production, transportation, middlemen profit and also all applicable taxes. However, shops or retailers can discount on MRP and sell it to attract customers.