Hotel Body Issues Clarification
To ‘Purported’ Minister’s Remark
Mumbai: The Hotel and Restaurant Association
of Western India (HRAWI), in a bid to remove any ambiguity over selling water,
aerated drinks and similar commodities above the Maximum Retail Price (MRP),
has issued a circular to its members clarifying that hotels and restaurants
could continue to sell the same above the MRP. However, it also advised not to
sell water bottles or such commodities carrying MRP over the counter at all,
and if they do, must be sold at MRP.
The HRAWI is a member association in
the western region of the Federation of Hotel and Restaurant Associations of
India (FHRAI), the apex body of hotels and restaurants in the country. It
issued the circular in response to queries posed by members after a section of the
media quoting Consumer Affairs Minister Ram Vilas Paswan carried a news item
that selling water and aerated drinks above MRP could attract fine and a jail
term. Some news items had also wrongly
stated that Hotel Association’s cases have been dismissed in High Court and
Supreme Court.
“Running the story without appropriate
verification has caused confusion and misunderstanding between hoteliers and
their patrons. As per the present law, there is no such legal repercussion that
can prosecute a hotel or restaurant for the sale of either packaged drinking
water or aerated drinks or any such commodity above the MRP while being served
in the premises i.e, inside Hotels and
Restaurants. So we have advised our members that they can continue
selling at suitable rates as the MRP
law applies to retailers only,” says Mr Pradeep Shetty, Hon Secy, HRAWI
& Chairman - Legal Matters sub-committee, FHRAI & HRAWI.
FHRAI
had filed a Writ Petition before the Delhi High Court challenging the notices
issued under the then prevailing law namely the Standards of Weights and
Measures Act for serving water above MRP.
The Ld. Single Judge of the Delhi High Court by judgment dated 5.3.2007
in W.P. No 6517 of 2003 allowed the writ petition filed by FHRAI holding inter
alia that, “… charging prices for mineral water in excess of MRP
printed on the packaging, during the service of customers in hotels and
restaurants does not violate any of the provisions of the SWM Act as this does
not constitute a sale or transfer of these commodities by the hotelier or
restaurateur to its customers. The customer does not enter a hotel or a
restaurant to make a simple purchase of these commodities. It may well be that
a client would order nothing beyond a bottle of water or a beverage, but his
direct purpose in doing so would clearly travel to enjoying the ambience
available therein and incidentally to the ordering of any article for
consumption…”
“Thereafter, two other Courts ( Kerala
and Delhi HC ) have also held non-applicability of MRP to items sold in hotels
and restaurants. It is regrettable that wrong information continues to
circulate even on matters like these. Nobody comes to a hotel or a restaurant
to purchase goods or commodities; they come to our establishments to enjoy
service and ambience. As hoteliers, our primary focus is on providing memorable
experiences,” concludes Mr. Dilip Datwani, President, HRAWI.
About Hotel &
Restaurant Association Western India (HRAWI)
The Hotel and Restaurant Association (Western India) is a 66 years old
Association of Hotels and Restaurants in Western India. Its members include
smaller Hotels up to 5-Star Deluxe categories. The bulk of its members like any
growth economy are made up of budget hotels. HRAWI covers Maharashtra, Gujarat,
Madhya Pradesh, Chhattisgarh, Goa and the Union Territories of Daman, Diu &
Silvassa, and is considered to be the voice of the Hotel Industry. The
association is part of the national body of Federation of the Hotels &
Restaurants Associations of India (FHRAI), located in New Delhi, which was
originally founded in Mumbai in 1950 by the late Mr. J.R.D. Tata.
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