Dual MRPs on packed items: Maharashtra, Karnataka top the list

Centre had directed all state govts and UTs to stop the practice of dual MRPs for same commodity

Plastic bottle
<a href="http://www.shutterstock.com/pic-96200648.html" target="_blank">Image</a> via Shutterstock
Sanjeeb Mukherjee New Delhi
Last Updated : Apr 12 2017 | 1:18 AM IST
Maharashtra has booked the most cases for dual pricing of a packaged commodity in violation of maximum retail price (MRP) rules.
According to data furnished by the government recently, around 3,725 cases were booked for dual MRPs in Maharashtra from 2013-14 to 2015-16. Karnataka had registered 2,538 cases. These constituted around 25 per cent and 17 per cent, respectively, of complaints registered across the country under dual MRPs.

The Legal Metrology (Packaged Commodities) Rules, 2011, makes it illegal to charge different prices for a packaged product within a state.

For example, a one-litre bottle of packaged mineral bottle might cost more in cinemas, railway stations, malls, multiplexes, airports, etc, than at a roadside shop. Sometimes the manufacturers themselves print a different price on products, while some dealers also do it. In both cases, it ends up harming the interest of consumers.

The Centre had in a letter issued in December 2016 directed all state governments and Union Territories to stop the practice of dual MRPs for the same commodity within the same state. The directive was issued after it got several complaints from consumer rights activists and others that many cinemas, stadiums, multiplexes and other places within a city or state were charging dual MRPs for the same packaged food items. It was also found that at airports and movie halls, packaged food items were being sold at a higher rate than outside. Hotel owners, on their part, had justified selling such goods at a price higher than the MRP because they provide additional services such as air-conditioning, sitting, etc.

The Maharashtra government had subsequently cracked down on the practice and booked 134 establishments for violation of the packaged commodities rules. 


 
Five manufacturing companies were also asked to explain within seven days why varying rates were being charged for the same product. Officials said investigations had showed that many malls and multiplexes in and around Mumbai sold packaged aerated drinks and mineral water at 10-30 per cent more than the printed MRP.

The state government had also asked the Board of Control for Cricket in India (BCCI) to direct all its stadiums and sister associations to stop this practice during cricket matches.

Later, Rajasthan and Delhi also ordered a crackdown on such dubious practices.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Next Story