BANGALORE: The Consumer Disputes Redressal Forum has imposed a penalty of Rs 50,000 on Black Bird Showroom for allegedly indulging in unfair trade practices by collecting five per cent VAT over the MRP and directed it to pay a compensation of Rs 5,000 to one of its customers.Attracted by the discount offer made by Black Bird, Chandru, a resident of Bagalagunte, purchased two branded jeans pants with MRP tags on them. The pants were priced at Rs 887.50 and Rs 1,087.50 respectively. According to the offer, the showroom was supposed to give him a discount of 20 per cent of the MRP.However, the shop owners collected an additional five per cent money over the discounted price and claimed that they are collecting it towards VAT. As the rules say that the MRP should be fixed after including all the direct and indirect taxes, Chandru tried to convince the shop owners not to collect the VAT over the discounted price. However, the showroom staff did not relent. Therefore, Chandru had to pay an additional Rs 79 to buy the pants.An aggrieved Chandru filed petition in the Fourth Additional Consumer Disputes Redressal Forum seeking the forum to direct the showroom to refund the additional amount collected from him along with a compensation of Rs 15,000. Chandru had also requested the forum to impose a penalty of Rs 4.8 lakh on the showroom for fraudulently collecting the money from the people.The forum directed the showroom to refund the additional Rs 79 collected from Chandru along with a compensation of Rs 5,000 besides imposing a penalty of Rs 50,000 for indulging in the unfair trade practices.The forum directed the showroom to remit the penalty amount to the legal aid account.
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