Bhopal's Radisson ordered to pay Rs. 8,000; consumer forum delivers verdict after 4 years
The Consumer Commission has ruled against a major hotel in Bhopal for charging Rs.175 for a water bottle priced at Rs.60. While the commission accepted that hotels may charge more than the MRP for services provided, it held that levying GST separately on the inflated amount was unjustified.
The hotel has been directed to refund the excess GST of Rs.10.80 to the consumer, pay Rs.5,000 as compensation for mental harassment, and Rs.3,000 towards litigation costs. If the payment is not made within the stipulated period, the hotel will also be liable to pay 9% annual interest.
Objected after seeing price of water bottle
The case dates back to April 2022, when Hukum Singh Thakur, a resident of Raisen Road, visited Hotel Radisson for a buffet dinner with four companions. During the meal, he purchased a mineral water bottle with an MRP of Rs.60, but was charged Rs.175 for it.
His total bill came to Rs.6,809.88. After noticing the inflated price, Thakur objected, but the hotel management refused to refund the amount. He then approached the Consumer Commission, which delivered its verdict in June 2026.
Hotel management said - charging more than MRP is justified
Hotel management argued before the commission that items sold in hotels and restaurants are not just products. Along with them, air conditioning, seating facilities, lounge, music, service, and other hospitality services are also provided.
The hotel stated that,
Therefore, the prices listed on the menu card are applicable. The MRP printed on the bottle is for retail shops, not for items served in the hotel.
The hotel also said that it was already clear in the menu that GST would be charged separately.
Error in tax collection
The District Consumer Disputes Redressal Commission, citing Supreme Court and other judicial decisions, held that charging more than the MRP at a hotel is not illegal in itself and cannot be considered a deficiency in service.
However, the Commission stated that GST would be considered included in the price of 175 rupees. In such a case, the hotel charging an additional 10.80 rupees as 18 percent GST on top of that is an unfair trade practice and a deficiency in service.
Complainant said that staff also misbehaved
Complainant Hukum Singh Thakur says that when he objected to the price, the hotel staff argued with him and also behaved rudely. It was after this that he knocked on the door of the consumer commission. He says that the commission considered the recovery of additional GST wrong, but on the issue of charging more than the MRP, he received only partial relief.
Lawyer said that matter is related to consumer rights
Shashikant Verma, the lawyer for the complainant (petition) side, said that the matter is not just about Rs.10.80, but is related to consumer rights. According to him, hotels and restaurants often charge high prices in the name of facilities.
He said that the commission's decision sends a message to consumers that justice can be obtained by raising a voice against unfair trade practices.
Commission cited 2 cases regarding MRP
Federation of Hotel and Restaurant Association of India vs Union of India (Civil Appeal No. 21790/2017, judgment dated 12.12.2017). In addition, the commission also mentioned another decision, ITC Ltd vs K.C. Khanna (Appeal No. A/2013/2201, judgment dated 04.09.2023).
These decisions held that institutional consumers like hotels, restaurants, airlines, and railways purchase packaged goods and make them available to customers along with their services. Therefore, the general retail MRP rules do not apply to them in the same way as they do to shops. On this basis, the commission held that charging more than the MRP by a hotel is not illegal in itself.
