Government will seek explanation from hotels charging exorbitant rate for food items, says Paswan

‘Exorbitant rate for food items like bananas and eggs is an unfair trade practice’

New Delhi: Union Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan addresses a press conference on the Consumer Protection Bill, 2019, in New Delhi, Tuesday, August 13, 2019. Minister of State Danve Raosaheb Dadarao is also seen. (PIB/PTI Photo) (PTI8_13_2019_000153B)

Five star hotels charging exorbitant rate for food items like bananas and eggs is an “unfair trade practice” and the government will seek explanation for it from them, Food and Consumer Affairs Minister Ram Vilas Paswan said on Tuesday.

Mr. Paswan referring to a recent tweet by actor Rahul Bose on being charged ₹442 for two bananas at the JW Marriott Hotel, Chandigarh, and another tweet by a consumer on being charged ₹1,700 for two boiled eggs at the Four Seasons Hotel in Mumbai, said that rules under the recently passed Consumer Protection Bill would take care of such violations.

‘A serious issue’

“Outside the gate of the five star hotel, eggs are sold for ₹1 and inside for ₹1,000. This is a serious issue. Also, every hotel has to display prices of the food items they serve in a menu,” the Minister added.

In his previous stint at the Ministry during the first government of Prime Minister Narendra Modi, the Minister had taken on movie halls, asking them to serve water at the Maximum Retail Price (MRP).

“We will not allow dual MRP,” Mr. Paswan said, adding that the government would make rules to check such practices under the Consumer Protection Bill recently passed by Parliament. The rules will be in place within six months.

Action promised

Speaking on the sidelines of 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 such hotels if they were “found indulging in such unfair practices”.

The Federation of Hotel & Restaurant Associations of India (FHRAI) had defended JW Marriott Hotel, Chandigarh when the controversy broke out, saying the hotel did not do anything “illegal” and asserted it had done the right thing by charging 18% GST on food and beverages served in the hotel premises.

The FHRAI had argued that, unlike a retail store, where bananas could be purchased at market price, a hotel offers service, quality, cutlery, accompaniments, sanitised fruit, ambience and luxury, and not just the commodity alone.