Service Charge

In recent weeks, Reserve Bank of India officials have conveyed to banks that it wants a reduction in service charges, including those for debit cards, minimum balance violations and late payments

The Delhi High Court questioned restaurants over service charges, asking why customers pay extra when prices are already above MRP; the court called it unfair and coercive

Delhi L-G VK Saxena says restaurants may soon be freed from the need to renew MCD health trade licence yearly, as part of broader reforms to boost ease of doing business in the capital

Experts say errant establishments could face contempt of court proceedings

The single-judge bench of the Delhi High Court recently ruled that the mandatory collection of service charges is unlawful and violates established guidelines

Consumer watchdog CCPA has issued notices to five restaurants for continuing to impose mandatory service charges despite a recent Delhi High Court ruling upholding guidelines against the practice. The Central Consumer Protection Authority (CCPA) took suo moto action against Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation after receiving complaints through the National Consumer Helpline. The notices demand refunds of collected service charges under provisions of the Consumer Protection Act, 2019, an official statement said. According to guidelines issued by the CCPA on July 4, 2022, and upheld by the Delhi High Court on March 28, 2025, restaurants cannot add service charges automatically to food bills or collect them under any other name. The guidelines clearly state that service charges must be voluntary and at the consumer's discretion. "No hotel or restaurant shall force a consumer to pay a service charge," the guidelines emphasise, adding tha

Delhi High Court makes it clear that service charges are a voluntary payment at the discretion of customers

The HC decision came on a clutch of petitions moved by the Federation of Hotels and Restaurant Associations of India (FHRAI) and the National Restaurant Association of India (NRAI)

The Delhi High Court today ruled that restaurants and hotels cannot impose mandatory service charges, affirming the CCPA's guidelines that protect consumer rights and promote fairness

The Delhi High Court on Friday reserved its verdict on the petitions by restaurant bodies challenging the guidelines prohibiting hotels and restaurants from automatically levying service charge on food bills. "Arguments heard. Judgement reserved," said Justice Prathiba M Singh. Federation of Hotels and Restaurant Associations of India (FHRAI) and National Restaurant Association of India (NRAI) moved court in 2022 by filing two separate petitions. The guidelines, issued by Central Consumer Protection Authority (CCPA) on July 4, 2022, were stayed by the high court later that month. The counsel for FHRAI, in his rejoinder submissions on Friday, asserted the CCPA had no power or jurisdiction to impose such a ban, without following the principles of natural justice. "Merely holding a meeting with the industry body is not in compliance of natural justice," he said, "the guideline could only be advisory in nature". He said the service charge was levied on customers for the benefit of th

Google had argued that restricting it from charging a fee in the interim would virtually mean that the tech giant would have to provide its Playstore for free to developers in India

Effective since October 10, 2023, passengers will no longer incur handling fees for carrying musical equipment such as guitars, keyboards, violins, or other musical instruments

Despite the Central government's strict guidelines, hotels and restaurants continue to impose service charges under various pretences

Centre said that since the guidelines issued by the CCPA in July last year, more than 4,000 complaints have been registered on the National Consumer Helpline

The Restaurants' Association said that levying of service charges has been a standing practice for more than 80 years in the hospitality industry

The Delhi High Court said on Wednesday its earlier order staying a ban on automatic levy of service charge on food bills cannot be shown by restaurants to the customers in a manner which suggests that the charge has been approved by it. Justice Prathiba M Singh, who was hearing the pleas by two restaurant bodies challenging the July 4, 2022 prohibition by the CCPA, also observed that the words 'service charge' give an impression of being a government-backed levy and asked the petitioners to state if they have any objections to changing the term to 'staff charges' or 'staff welfare fund' etc to avoid any confusion. The judge asked the petitioners- National Restaurant Association of India (NRAI) and Federation of Hotels and Restaurant Associations- to also state the percentage of its members who impose service charge as a mandatory condition and directed them to file their affidavits on the queries. Additional Solicitor General Chetan Sharma said certain restaurants were misinterpreti

Asks industry bodies to tell the court how many eateries are willing to inform consumers that service charge is not mandatory

Aim is to create awareness among consumers and protect them from being overcharged; another issue is the practice by manufacturers to compel users to download apps in order to make complaints

People prefer making transactions online but regard service charges as unjustified and costly

It comes just days after, on Tuesday, HC had asked the restaurants why they could not increase the salaries of their staff instead of levying a service charge