Saturday, December 13, 2025 | 12:38 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Delhi restaurants refuse to budge on service charge despite HC order

Experts say errant establishments could face contempt of court proceedings

Central Consumer Protection Authority, Consumer protection act, restaurants, Delhi High Court, Service charge, levy
premium

Justice Pratibha M Singh had over a month ago ruled that “while the mandatory collection of service charge is contrary to law and violates the guidelines”, a voluntary tip by customers for the service enjoyed “would not obviously be barred”

Akshara SrivastavaBhavini Mishra New Delhi

Listen to This Article

Most restaurants in the National Capital Region (Delhi-NCR) have continued to impose a service charge even after a recent Delhi High Court verdict struck down the practice. At Delhi’s upscale Khan Market, almost all restaurants, barring a couple, are imposing a 5-10 per cent additional charge, calling it “service charge”, “staff welfare contribution charge”, or “staff contribution charge”.
 
Managers at some of these restaurants said that the charge is voluntary and is removed if the customer demands it. But it is being added to the bill, making it the customer’s responsibility to check for the charge and take necessary action.