ALIGARH, UTTAR PRADESH: A shopkeeper in Aligarh, Uttar Pradesh, has had to pay a steep price for adding Rs 20 to the price of a cigarette pack for a customer. The customer went to court, and orders were issued, giving rise to panic among traders, imposing a penalty of over Rs 10 lakh on the shopkeeper. The District Consumer Disputes Redressal Commission, Aligarh, in a historic decision, has said that selling goods at a price higher than the Maximum Retail Price (MRP) is unacceptable under any circumstances to protect consumer rights. In a case of Rs 20 overcharge, the Commission was tough on the cigarette seller and the company, and has directed them to pay Rs 10.10 lakh as penalty. It also ordered the consumer to receive the Rs 20 over and above the amount collected with interest at 18 per cent per day.
Aligarh is not the only place where the Commission’s decision has been talked about, it has also been discussed throughout the state. The judgment has been hailed as a cautionary tale for traders who might think it is a normal business practice to sell items at higher than MRPs.
What is the case about?
The case is related to advocate Devesh Gautam, a resident of Raghuvirpuri in Aligarh city. Devesh Gautam had bought a packet of Classic from a shop across from Fire Brigade Pokhar in the city, information said. The MRP of the packet was Rs 340 but Hiralal Varshney, the shopkeeper, asked him to pay Rs 360 for the packet. On being queried about charging an extra Rs 20 over MRP and giving reason, Gautam queried the shopkeeper and he stuck to his decision.
The consumer protested to the seller but the seller did not accept the payment at MRP. Devesh Gautam reportedly did not take it lightly and made an online payment of Rs 360 to ensure that a digital copy of the payment would be maintained. Since it was a blatant violation of consumer rights, he took all evidence and documents related to payment and filed a complaint before the District Consumer Commission, Aligarh.
Proceedings before the Commission
At the time of the proceedings, the District Consumer Commission considered the claims made by both parties at length. The claimant was able to provide digital evidence of payment as well as the documents regarding the transaction. The opposite party was also allowed to present their case. After considering all the evidence and facts in the case, it was observed by the District Commission that overcharging of MRP constitutes a violation of consumer protection laws. It was also noted that the complainant suffered from the practice of unfair trade and infringement of rights.
Penalty of Rs 10 lakh
The District Consumer Commission President, Aligarh, Hasnain Qureshi, and member, Poornima Singh Rajput, while giving their judgment, upheld the case filed by the claimant. Considering the seller as guilty, the commission gave an order for paying compensation and penalty amounting to above Rs 10.10 lakh. In addition to this, the commission ordered the refund of the excess amount charged from the customer, which is Rs 20.
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