Five-star hotels charging exorbitant rate for food items like bananas and eggs is ‘unfair trade practice’ and the government will seek explanations from them, Food and Consumer Affairs Minister Ram Vilas Paswan said on Tuesday.
Mr. Paswan was referring to a video, that recently went viral, in which actor Rahul Bose was seen complaining about a five-star hotel in Chandigarh billing him ₹442 for two bananas. One more complaint of another five-star hotel charging ₹1,700 for two boiled eggs has also gone viral on social media.
“There are complaints and reports on social media and the media about some five-star hotels overcharging for items like bananas and eggs, sold in the open market at very cheap rates. This is a serious and unfortunate matter,” Mr. Paswan told reporters here.
He said the department will seek explanations from the five-star hotels.
“We will not allow dual MRP (maximum retail price),” he said, adding that the government will make rules to check such practices under the Consumer Protection Act that was recently passed by the Parliament.
Speaking on the sidelines after the Minister’s press conference, Consumer Affairs Secretary Avinash K. Srivastava said, “Prima facie it is an unfair trade practice. As the Minister has directed, we will seek explanations from these hotels.” He further said that action would be taken against hotels if they are found indulging in unfair practices.
The Federation of Hotel & Restaurant Associations of India (FHRAI) had however defended the Chandigarh hotel when the controversy broke out saying the hotel had not done anything “illegal” and that it was right in charging 18% GST on food and beverages served on its premises.
The FHRAI had argued that unlike a retail store where bananas could be purchased at market price, a hotel offers service, quality, plate, cutlery, accompaniment, sanitised fruit, ambience and luxury, not just the commodity.
