Leela Palace Udaipur fined ₹10 lakh as staff enters couple's room without permission, hotel evaluates legal measures

A housekeeping staff at The Leela Palace allegedly used the master key to access an occupied room, and peeped in on a couple in a compromising position.

The Leela Palace Udaipur owner, Schloss Udaipur Private Limited, has been held liable for gross deficiency in service and breach of a guest’s right to privacy by the District Consumer Disputes Redressal Commission, Chennai (North).

In the SN v. Schloss Udaipur Private Limited case that was disposed of on December 16, 2025, the commission directed the hotel to pay ₹10 lakh as compensation to the complainant, along with ₹10,000 toward litigation costs and full room tariff with nine percent annual interest from January 26, 2025, until the amount is realised.

The case was filed by a Chennai-based advocate who booked a ‘Grand Room with Lake View’ at the luxury hotel for one night to celebrate her husband’s birthday and their babymoon. She paid a non-refundable tariff of ₹55,500 for the booking.

What happened during the stay at Leela Palace Udaipur?

The couple was in the washroom at the time. They allegedly shouted “No service,” but the housekeeper did not heed the statement. As per the complaint, the housekeeper “peeped through the broken washroom door, and observed the complainant in a compromising and naked state for several seconds.

The person then left after offering a casual apology. The incident left the complainant, who was pregnant at the time, humiliated, traumatised, and emotionally distressed, while the husband felt completely helpless.

After the incident was reported at the reception, the complainant claimed that they received no prompt response from senior management. The hotel denied any deficiency in service and claimed that the staff had followed Standard Operating Procedures (SOPs). It further asserted that the internal privacy safeguards inside the room were not engaged at the time of the reported incident.

Observations of the commission

The District Consumer Disputes Redressal Commission, Chennai (North), has rejected the defence of the hotel, stating that the apology letters that the hotel itself has issued following the incident acknowledged a lapse in handling the situation on their part.

Reliance on internal SOPs cannot override a guest’s fundamental right to privacy, observed the Commission, particularly in a five-star hotel that charges premium tariffs and claims to provide world-class hospitality.

The hotel management was also slammed by the Commission, as they recorded that the couple faced multiple incidents of harassment that night. This included a delay in getting the CCTV footage, admission that the camera outside the room was not functional, and withholding luggage as the couple waited for hours to receive a promised apology letter.

The aforementioned incidents compounded the original violation, observed the Commission. It emphasised that the owners of the hotel were in clear breach of the greater responsibility that was placed upon them by the fact that the complainant was pregnant at the time, which aggravated the mental trauma she suffered.

The Leela Palace, Udaipur, responded to HT's request for comments, stating:

“Guest privacy, dignity and safety are of paramount importance at The Leela, and form the cornerstone of our service philosophy. We take any matter concerning our guests’ experience with the utmost seriousness.”

“The recent order by the District Consumer Redress Commission, Chennai is under review and appropriate legal measures are being evaluated to ensure a just resolution.”

"The Leela remains fully committed to upholding the trust of its guests and to delivering gracious, respectful and world-class hospitality at all times."