Selling bottled water higher than the maximum retail price (MRP) will be liable for a fine of Rs. 25,000 or a jail term said the Ministry of Consumer Affairs representing the Government in the Supreme Court. The government while responding to a petition at the apex court, it explained that charging higher than the MRP on packaged water is against the law.
“Sale of packaged water over MRP by hotels and restaurants may have implications regarding tax evasion as a bottle purchased by a hotel at cost price, which should be sold at MRP or less, is being sold at much higher prices, leading to possible loss of additional revenue to the government in the form of service tax or excise duty etc.,” said the government according to the report in the First Post.
The government explained that the Legal Metrology Act bans from charging more than the MRP for packaged mineral water and the act also recommends a fine of Rs. 25,000 or a jail term for the first time offense while it can go higher for the subsequent offenses.
“Section 36 of the LMA clearly says anyone found selling, distributing or delivering any pre-packaged commodity not in conformity to the declarations on the package shall be punished with fine of up to Rs 25,000 for the first offence. The monetary penalty can go up to Rs 50,000 for second offence and can further rise to Rs 1 lakh and a year’s jail term if the violation occurs yet again.” added the report as the government explaining while the responding to the petition brought in by the Federation of Hotels and Restaurants Association of India.