Madras High Court Closes PIL Alleging Exorbitant Pricing At Chepauk Stadium, Cites SC Judgment Permitting Levy Of Service Charge Above MRP

Chief Justice SV Gangapurwala and Justice PD Audikesavalu observed that though the petitioner had claimed that food items were sold at a high price than the actual fixed market price, the details of the items were not submitted and thus the court could not arrive at a conclusion. The court, however, gave liberty to the petitioner to approach any other authority for remedy.

“The details of the items and their MRP are not submitted by the petitioner before the Court, to arrive at any conclusion… In light of the above, no orders could be passed in the writ petition, more particularly in the absence of details. In case, the petitioner has any remedy before any other authority, the petitioner is at liberty to approach the same,” the court observed.

The petitioner AS Shanmuga Rajan, an advocate had claimed that when he went to watch the India-Australia ODI match on March 22, he noticed various management issues. It was submitted that there were no basic amenities like clean drinking water, clean toilets, etc inside the stadium. Further, it was submitted that water, food and snacks were sold at exorbitant prices. Listing out the details, Rajan submitted that even a Rs. 20 water bottle was sold at Rs.100 leading to huge swindling of public money.

Rajan further argued that the association was in clear violation of the Legal Metrology Act of 2009 and the Legal Metrology (Packaged Commodities) Rules. Pointing out that the stadium is scheduled to host several matches in the Indian Premier League, 2023, and the ICC World Cup, 2023, Rajan submitted that quick action was necessary to ensure that the hard earned public money is not swindled.

The court had previously directed the authorities of the Stadium to respond to the plea. The authorities submitted that free water facility was provided at the stadium. It was submitted that instead of water bottles, water was given in glass for safety and security reasons and service charges were also permitted for such acts. It was further submitted that no MRP was fixed for coffee which was sold by the coffee vendor at a price.

They relied on the decision of the Apex Court in Federation of Hotel and Restaurant Associations of India vs. Union of India and K.C. Cinema vs. State of Jammu and Kashmir, where it was held that sale of water over the MRP was permissible as service element was also included.

"The Apex Court has also observed with regard to the sale of water, over the MRP in hotels and restaurants, which according to the Apex Court, is permissible, as service element is also included."

However, since there were no details, the court disposed of the petition, giving liberty to the petitioner to seek remedy before appropriate authority.

Counsel for the Petitioner: Mr.S.Sarath Kumar

Counsel for the Respondent: Mr.P.R.Raman, Senior Counsel, for Mr.C.Seethapathy, Mr.P.Muthukumar, State Government Pleader, Assisted by Mrs.R.Anitha, Spl.G.P.

Citation: 2023 LiveLaw (Mad) 300

Case Title: AS Shanmuga Rajan v Tamil Nadu Cricket Association and Others

Case No: WP No.10296 of 2023

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