A few years back stayed in an "Indian 5-star" hotel rather than a "European 5-star" hotel called the Oasis (I think) somewhere close to the Sea Harrier base. At the time the Leela Kempinski was around $200 / night, this place was around $15 and there wasn't a lot of difference. Only noticeable one was that the toilet attendant kept his cloth to himself (unlike the chap in the Leela who used to try to help you with your flies after urinating......yikes)
Very much a 2-tier charging system.
If I remember correctly Kingfisher was around five rupees a bottle - in town it was around 25-30