Five-Star Hotel Fined Over Privacy Breach: Udaipur Court Orders ₹10.1 Lakh Compensation

Jaipur: A consumer court in Rajasthan has imposed a penalty of over ₹10 lakh on Udaipur’s luxury five-star hotel Leela Palace for violating a guest’s right to privacy. The court held the hotel guilty of serious deficiency in service after its staff entered a guest’s room without consent, causing mental distress to a couple staying at the property.

The incident occurred at the lakeside hotel overlooking Lake Pichola, where the complainant was staying with his wife. According to the case presented before the court, a member of the hotel’s housekeeping staff used a master key to enter the room without prior permission, leading to a grave breach of privacy.

Court Flags Lapses in Security and Protocol

During the hearing, it also emerged that the CCTV camera installed outside the room was not operational at the time of the incident. The court noted that such lapses raise serious concerns about the hotel’s security arrangements, especially considering the premium tariff charged to guests.

The complainant argued that a hotel charging around ₹55,000 per night is expected to maintain the highest standards of safety, confidentiality and professionalism. The unauthorized entry, he said, reflected negligence and insensitivity on the part of the hotel management.

Hotel Held Responsible for Deficiency in Service

In its ruling, the consumer court observed that despite repeated assurances by the hotel management, the issue was not adequately addressed. The court categorised the incident as a serious deficiency in hospitality services and a clear violation of a guest’s right to privacy.

“The responsibility to ensure the safety and confidentiality of guests lies squarely with the hotel management,” the court stated, adding that such incidents cannot be taken lightly in premium hospitality establishments.

Compensation Ordered

The court directed Leela Palace to refund the room rent of ₹55,000 with interest. In addition, taking into account the mental agony suffered by the complainant and litigation expenses, the hotel was ordered to pay a total compensation of ₹10.10 lakh.

The verdict is being seen as a significant ruling reinforcing the importance of guest privacy, security protocols and accountability in India’s luxury hospitality sector.