Till the year 2005, most Hotels and Restaurants were obtaining Cable T.V. connection from the local T.V. cable operator for supply of T.V. channels, at prices determined between themselves. The system continues even today. A few big chain Hotels have set up their own cable T.V. reception equipments and they obtain signals directly from the Broadcasters. In the middle of 2005, the Broadcasters and their agents unilaterally decided to raise the tariff for their channels and started asking Hotels and Restaurants across the country to have agreements directly with the Broadcasters by paying exorbitant charges.

The Association on behalf of its members, requested the Broadcasters to be reasonable in their demand and also requested them to allow the Hotels and Restaurants to receive the signals from the local cable operators who are providing the services, as it was beyond their means to install equipments and obtain the signals directly from the Broadcasters The Broadcasters and their agents refused the request of the Association and hence the Association had to take recourse to the legal remedy. Accordingly, it approached TDSAT, for resolving the dispute. TDSAT while admitting the Petition of the Association, granted a stay and Hotels and Restaurants were therefore required to pay the tariff as was prevailing in 2005. In the meanwhile, the Broadcasters and their agents continued to take coercive actions against Hotels and Restaurants compelling them to pay exorbitant charges. TDSAT thereafter delivered its Judgment at the beginning of 2006, holding that Hotels and Restaurants are not consumers. The sheer un-reasonability of this Judgement compelled the Association to move an Appeal in Supreme Court of India, which thereafter ruled in November 2006 that Hotels and Restaurants are indeed consumers. The Supreme Court, therefore directed TDSAT to dispose off the Petition filed by the Association on that basis. In November 2006 TRAI for the first time issued a notification prescribing the tariff for domestic consumers. While doing so, TRAI excluded the following categories of Hotels from the tariff regime and these Hotels were left to discretion of negotiating skills between the Broadcasters and the subject Hotels.

a) Hotels with 50 rooms and above.

b) Hotels with a ranking of 3 Star and above.

c) Heritage Hotels.

Aggrieved by the notification, FHRAI the apex body moved TDSAT challenging the discriminatory treatment. After several hearings, TDSAT is yet to announce its ruling in the matter. In the meanwhile, TDSAT ruled that no coercive actions can be taken by the Broadcasters against Hotels. As things stand

today, all consumers both Residential and Hotels & Restaurants except the excluded category listed above, pay the tariff as per the TRAI notification, amended from time to time, both in CAS and non-CAS areas. Recently, the Broadcasters have once again started taking coercive actions against Hotels and Restaurants, by instituting criminal cases against them for copy-right infringement. It is the submission and contention of the Association as well as FHRAI that the product being supplied by the Broadcasters is same whether to a Residential consumer or to a Hotel or Restaurant and hence, there cannot be a price difference. According to Mr.Dinesh Khanna, President HRAWI, “Hotels and Restaurants are providing cable T.V. as a consumer service, free of cost like any other service provided in a Hotel, such as bed, linen, toiletries, newspaper, water and we pay various taxes to the government, we are already paying the cable operators, paying each individual broadcasters, their agents and also IPR for the music on the cable is nothing but harassment; we are waiting for the hearing in TDSAT which is on 14th July 2008”.

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ABOUT HOTEL AND RESTURANT ASSOCIATION (WESTERN INDIA):

HRA (WI) was incorporated 3rd February 1951 with the primary objective to serve the interest of the hotel and restaurant industry. The Association over the last several years has taken major effective steps to encourage, promote and protect the interest of member establishments. It has been rendering professional advice and assistance from tome to time to all its members, on the topic of vital importance.

The Association admits and assists members operating in the Western India Region viz. in State of Maharashtra, Gujarat, Goa, Chhatishgarh, Madhya Pradesh and the Union Territories of daman, Diu and Dadra and Nagar – Haveli.

The Association renders assistance during promotion and operation of any hotel and/or restaurant. The Secretariat of the Association manned by professionals & equipped with facilities required by the industry, provides to the members, information on various aspects such as applicability of law, tax matters, labour, liaison with tourism department, foreign exchange and import licensing etc. The Association issues from time to time circulars clarifying matters concerning the hotel and restaurant industry and brings out a monthly bulletin NEWS & VIEWS. It holds periodical meetings on subjects of topical interest to the industry and convenes Regional and National convention to deliberate upon matters affecting the industry