A supreme court on Tuesday said that the hotels, restaurants can now sell bottled water and packaged food above MRP (Maximum Retail Prices).
It was reported that a judgment was passed on Tuesday on a special leave petition filed by the Federation of Hotel and Restaurant Associations of India against the Union of India.
Following which, the Supreme Court said has rejected the government’s argument that over-charging for pre-packed products was an offence under the Legal Metrology Act.
This could also lead to a fine of Rs 25,000 or a jail term, as per the sources.
A Lawyer said in a statement, “The court in its judgment said there are a whole lot of other services that go with being served in hotels and restaurants and prosecution under the Legal Metrology Act for alleged breach of MRP prices cannot be launched”.
The bench said, “It is not a case of simple sale. Nobody goes to a hotel to buy or take away a bottle of mineral water”.
It was believed that in the year 2015, the government also filed an appeal to prosecute hotels and restaurants for overcharging.
It was learned that the bench which was headed by Justice Rohinton Nariman said the provision of the law will not apply to hotels and restaurants.