Cinema owners submits they have no control over prices printed on the commodities they sell
~By Aditya Singh
The Delhi High Court on May 24 restrained the government from forcing PVR Cinemas to not charge excess for commodities inside the movie halls when prices of the same branded commodities – with soft drink Pepsi mentioned – are less outside. The court, however, has allowed the government to go ahead with the show cause notice it had sent to the movie hall owners regarding this. The government has to file a counter-affidavit in four weeks.
PVR had challenged the notice issued against them by the Union of India.
PVR’s counsel said that the matter pertains to the dual pricing, as Pepsi is being sold at higher prices in PVR and INOX theatres across India than in grocery stores. He said the manufacturer of Pepsi has already got an injunction in the Bombay High Court where the proceedings related to the ‘dual pricing’ is pending. He also pointed out that the Supreme Court has not barred the dual pricing.
He said: “We are selling the commodity at its printed price and we have no control over the price as we are just cinema owners.”
The Union of India had relied on an order of NCDRC where it has been stated that dual pricing should be regulated and cannot be arbitrary. PVR’s counsel said this particular order by NCDRC has been appealed against in the Supreme Court and therefore it cannot be considered as a final order.
Justice Sanjeev Sachdeva observed that dual pricing is not something new and is prevalent in the market. He gave an example. He said: “In a five-star hotel we don’t get a bottle of mineral water for Rs 10. They sell it at a higher price, which is already printed on it.”
In his order, the judge said: “PVR and INOX are companies which indulges in running cinemas in single screens and multiplexes in various parts of the country. They maintain high standards for the cinema outlets with respect to the food and beverages sold there. The said commodity is directly bought from the manufacturers and sold to the bona fide movie goers and not the outsiders.”
With this the court gave the restraining order.