Leela Palace Udaipur Fined ₹10 Lakh for Privacy Breach, Ordered to Refund Room Tariff

Chennai, January 8 (Udaipur Kiran) : The District Consumer Disputes Redressal Commission, Chennai (North), has imposed a penalty of ₹10 lakh on Leela Palace Udaipur in a case related to violation of guests’ privacy. The commission has also directed the hotel to refund ₹55,000 paid as room tariff to a Chennai-based couple, along with 9 percent annual interest from January 26, 2025, the date of the incident, till recovery. In its order dated December 16, the commission further asked the hotel to pay ₹10,000 as litigation costs and directed that the entire amount be paid within two months.

Leela Palace Udaipur

The complaint was filed by a Chennai-based advocate who had booked a “Grand Room with Lake View” at Leela Palace Udaipur for a one-day stay on January 26, 2025. According to the complaint, a housekeeping staff member used a master key to enter the occupied room while the complainant and her husband were inside the washroom.

The complainant alleged that despite shouting “no service,” the staff member entered the room and looked through a broken washroom door, causing serious mental distress and constituting a grave invasion of privacy.

The commission held the incident to be a clear case of deficiency in service and breach of privacy. It observed that housekeeping staff cannot be permitted to enter an occupied room using a master key merely on the basis of internal Standard Operating Procedures (SOPs).

The commission noted that entering a room with a master key within less than a minute of knocking was not only improper but also unsafe, particularly when the room was occupied and the washroom was in use. It added that in the absence of any response from inside, hotel staff should have first confirmed with the reception whether the guests were present or had checked out.

Leela Palace denied any wrongdoing, stating that the staff member had rung the doorbell, there was no “Do Not Disturb” sign displayed, and the door was not double-locked. The hotel also claimed that the staff exited immediately after realising the guests were inside.

However, the commission rejected these arguments, stating that internal SOPs cannot override guests’ fundamental rights to privacy and safety. It also treated the written apology letters issued by the hotel on the same day as important evidence, observing that such apologies indicated failure in handling the situation.

The commission also expressed concern over the delay in providing CCTV footage and pointed out that the camera installed outside the room was not functioning, raising serious questions about guest safety. The complaint was filed against Schloss Udaipur Private Limited, the company that operates Leela Palace Udaipur.

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