Shagun Veg Restaurant, Mumbai fined for overcharging customers unfairly!

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Shagun Veg Restaurant, Mumbai fined for overcharging customers unfairly!

2 lakh fine slapped on Shagun Restaurant

Thursday, 27th August 2020

Six years post the Mumbai Central’s Shagun Veg Restaurant levied Rs 10 extra for a pack of ice-cream, a 2 lakhs fine was slapped on the eatery by the district forum for such unfair business practice, apart from ordering to offer compensation to the customers who were charged unfairly.


The forum revealed that the restaurant had been operating since the last 24 years and had been earning about Rs 40,000-50,000 per day. And due to its unscrupulous trading practices, the restaurant has definitely been able to make a good amount of profit the wrong way; i.e. by charging customers more than the standard market price.


Ordering the restaurant for the additional penalty deposit of an amount of Rs 2 lakh the forum said, "In order to curb such unscrupulous trade practices by restaurants and shops and for the benefit of customers, the principle of fear of deterrence must be addressed".


When Bhaskar Jadhav, a police sub-inspector stopped at the restaurant on his way back home from the DB Marg Police Station and attempted to get a pack of ice cream for guests who had visited at his home on June 8th (2014) night, the restaurant charged him Rs 175 for a pack. The MRP printed on the pack however was Rs 165. He informed that he had picked two family ice cream packs for the cost of one but was unpleasantly surprised on seeing the extra charges. In the year 2015 he had submitted a complaint before the Consumer Disputes Redressal Forum of the South Mumbai District.


Jadhav informed to the authorities at the district consumer forum that he had attempted to highlight the issue to the restaurant, but they dismissed his objection. He also told that he had bought the ice cream from the restaurant’s counter and hadn’t even stepped into the restaurant. In support of this, he had also submitted the bill to the forum specifying clearly that the ice cream was served to him at the counter only.


The restaurant, in order to retort, said that it had incurred the costs for storing the ice-creams. It further iterated that there was definitely a difference between getting ice cream from a shop and getting it from a restaurant.


In an attempt to refute the restaurant’s explanation, the district forum said that Jadhav hadn’t opted for any of the services of the restaurant like using the restaurant’s furniture, having the ice cream in the restaurant’s cutlery, using the cooling facilities at the restaurant like the AC/Fan, ordering the waiter for some water or even tasting the restaurant’s mouth freshener usually served to customers with the bill. Hence, the forum has declared that the surcharge wasn’t at all fair.



Source: Times of India

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