Elite clubs can charge extra for ambience

The Delhi High Court on Tuesday held that the elite Gymkhana Club was well within its rights to charge its members more than the maximum retail price (MRP) of food and beverages.

Justice Gita Mittal said that like any hotel or restaurant in Delhi, the club — a hub of Delhi’s rich and famous — could also charge its members for the facility and ambience being provided to them.

The court made it clear that since the club cannot be addressed as dealers - retail or wholesale - Standards of Weights and Measures Act will not apply to it.

The ruling came on a writ filed by the club, challenging a notice issued to it by a consumer court on a petition filed by a member, Harish Tripathi, who termed the overpricing of a bottle of Coca Cola as illegal.

Tripathi argued that the club could very well use the monthly subscription of Rs 200 charged from the members for meeting their expenses.

Citing various judgments of the Supreme Court, Justice Mittal upheld the argument of the club that price charged by clubs, hotels and restaurants depends on the quality of level of the establishment, its location and the facilities it provides.