Heavy Fine, Jail term for Selling Bottled Water above MRP

Team SoOLEGAL 13 Dec 2017 10:11am

Heavy Fine, Jail term for Selling Bottled Water above MRP

Heavy Fine, Those selling bottled water at more than its maximum retail price (MRP), including at restaurants, hotels and multiplexes, could attract heavy penalty and jail terms.

On Tuesday, The government informed the Supreme Court that there was a provision in law that penalises selling of packaged drinking water above its MRP.

Submitting its affidavit in response to a petition filed by the Federation of Hotel and Restaurant Associations of India (FHRAI), the Consumer Affairs Ministry has maintained that overcharging for pre-packed or prepackaged products was an offence under the Legal Metrology Act (LMA).

Section 36 of LMA clearly says anyone caught selling, distributing or delivering any pre-packaged commodity that does not conform to the declarations on the package shall be punished with fine up to Rs 25,000 for the first offence. It can increase to Rs 50,000 for second offence and subsequent offences can attract a fine of up to Rs 1 lakh or imprisonment for one year or both.

With recent cut in Goods and Services Tax (GST) rates on about 200 items, the government has allowed companies to paste a price sticker on packaged products to reflect new MRP until December. 

The Delhi High Court in 2007 had ruled that hotels and restaurants in the capital cannot sell bottled mineral water over and above the MRP to customers, who visit them and enjoy their other services and facilities.

Source: ETNow

Tagged: Supreme Court   bottled water   FHRAI   Legal Metrology Act   Consumer Affairs Ministry   Section 36   GST Rates     
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