Chennai Consumer Court Orders Compensation for Privacy Violation at Udaipur's Luxury Hotel

Consumer Court Ruling on Privacy Breach

A consumer court in Chennai has found the renowned luxury hotel 'The Leela Palace' in Udaipur guilty of violating guest privacy. The court has mandated the hotel management to pay a compensation of ₹10 lakh to the affected couple.

According to reports, a couple from Chennai stayed at The Leela Palace during their visit to Udaipur. They alleged that while they were in the bathroom, hotel housekeeping staff entered their room using a master key. The couple viewed this as an invasion of their privacy and subsequently approached the consumer court.

Details of the Incident

Multiple reports indicate that the guests, a couple from Chennai, claimed that the housekeeping staff accessed their room with a master key while they were both in the bathroom.

The hotel denied any wrongdoing in a statement, asserting that the guests had not placed a 'Do Not Disturb' sign on their door. The District Consumer Disputes Redressal Commission in Chennai (North) issued the penalty following a complaint filed by a Chennai lawyer, who had booked a room at the hotel for ₹55,500 on January 26, 2025.

Court's Findings

Despite the couple's protests of 'no service needed,' the staff allegedly entered the room and peered through a broken bathroom door, causing them mental distress. Legal news outlet Bar and Bench reported that the couple immediately informed the hotel reception about the incident, but received no prompt or appropriate response. This incident occurred during their stay in a 'Lake View Grand Room' at the luxury property near Lake Pichola.

The court deemed the hotel's argument insufficient, emphasizing that guest privacy and security should be paramount in luxury hotels. It stated that the hotel is responsible for exercising extreme caution when using a master key.

Commission's Verdict

In its ruling, the commission reportedly concluded that allowing staff to enter an occupied room constituted a serious lapse in service and an infringement on the guest's privacy. It noted that internal standard operating procedures should not override the fundamental rights to privacy and security. The commission criticized the staff for entering the room less than a minute after ringing the doorbell, labeling this action as inappropriate, especially when the bathroom was in use.

The commission ordered the hotel to refund ₹55,000 for the room tariff along with 9% annual interest from January 26, 2025, and to pay ₹10,000 for litigation costs. The total amount was to be settled within two months. The complaint was filed against Schloss Udaipur Private Limited, which operates the hotel.

Hotel's Denial of Wrongdoing

In a statement to Financial Express, The Leela Palace Udaipur denied any misconduct, asserting that the housekeeping staff entered the room after ringing the doorbell and following internal procedures.

The hotel mentioned that no 'Do Not Disturb' sign was displayed and that the door latch and double lock were not engaged. It also claimed that the staff member exited immediately upon realizing the guests were in the bathroom.

The hotel issued apology letters to the couple, stating that these were offered as a gesture of goodwill and did not imply an admission of fault. The statement emphasized, 'At The Leela, guest privacy, dignity, and security are of utmost importance, forming the foundation of our service philosophy. We take any matters related to our guests' experiences very seriously and are fully committed to maintaining their trust while providing exceptional, respectful, and world-class hospitality at all times.'