Leela Palace Udaipur Fined Rs 10 Lakh, Ordered to Refund Rs 55,000 with Interest and Costs for Privacy Breach

A Chennai Consumer Court has held luxury five‑star hotel The Leela Palace, Udaipur accountable for violating a guest’s right to privacy, ruling that internal procedures cannot justify unauthorised entry into an occupied hotel room.

The case was filed by a Chennai‑based advocate who, along with her husband, stayed in a “Grand Room with Lake View” at the hotel. During their stay, a housekeeping staff member allegedly entered the room using a master key while the couple was inside the washroom, despite them shouting “no service.” The complainant said the intrusion caused mental distress and amounted to a serious invasion of privacy.

The hotel denied wrongdoing, arguing that the staff followed standard operating procedures after receiving no response from inside the room. It claimed that no “Do Not Disturb” sign was displayed, the safety latch was not engaged, and the staff exited immediately upon realising the guests were inside. The hotel also said apology letters issued were goodwill gestures, not admissions of fault.

The District Consumer Disputes Redressal Commission, Chennai (North) rejected the defence, observing that SOPs cannot override a guest’s fundamental right to privacy. It noted that entering the room within less than a minute of ringing the bell was unreasonable, especially when the washroom was in use. The Commission also criticised the hotel for failing to produce SOPs, delaying CCTV footage, and having a non‑functional camera outside the room.

In its order dated December 16, the Commission directed The Leela Palace to pay Rs 10 lakh as compensation, refund the room tariff of Rs 55,000 with 9% annual interest from January 2025, and pay Rs 10,000 as litigation costs. The total amount is to be paid within two months.

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