HC stays order of MRTPC on packaged water row

New Delhi, May 26 (UNI) The Delhi High Court today stayed the Monopolies and Restrictive Trade Practices (MRTPC) order that held PVR Cinemas and Himalayan Packaged Mineral Water guilty of unfair trade practices for charging an exorbitant price on a bottle of mineral water inside the cinema multiplexes.

On an appeal filed by PVR seeking quashing of the MRTPC order, a division bench of Justice Mukul Mudgal and Justice PK Bhasin issued notices asking the respondents - complainant Mona Rajvanshi, Himalayan Packaged Mineral Water ans PVR Spice, Noida - to file their replies by July 20.

The Bench said the MRTPC order should not be given effect subject to the condition that free purified cold water would be made available on every floor with prominent display boards in multiplex.

The PVR submitted that the impugned order was passed without serving any notice of inquiry to it.

The MRTPC on May 22 had asked PVR Cinemas Ltd and Himalayan Packaged Mineral Water Ltd to abstain from such practice and had termed the sale of water at a higher cost as an act of "thwarting competition" and misleading consumers.

PVR Cinemas was thrusting an unfair trade practice by keeping only Himalayan brand of water and that too the costlier 750 ml version when the same manufacturer was packaging in different sizes even below 750 ml and also above 750 ml, it observed.

Mona, a visitor to PVR Spice Multiplex, had alleged that there was no provision for drinking water inside the multiplex and the people were forced to buy the packed mineral water brand supplied by Himalayan at an exorbitant price of Rs 25 for a 750 ml bottle.

The same water bottle was available for Rs 18 for one litre and Rs 12 for 500 ml. Besides, it created a monopoly as it restricted other sources of drinking water, the petition said.

Refuting the charges, Himalayan had contended that the prices were kept high as it had to recover the cost of the special machinery installed for packaging of the 750 ml mineral water bottles which were specially supplied to the cinema halls.

UNI PAT MSJ DB2040