Delhi restaurants pulled up for forcing service charges

New Delhi, Apr 29: In a move to protect consumer rights, the Central Consumer Protection Authority (CCPA) has taken suo motu action against five popular restaurants in Delhi: Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation for failing to refund service charges to customers, despite a clear order from the Delhi High Court.

The CCPA has issued notices under the Consumer Protection Act, 2019, directing these restaurants to immediately refund the wrongly collected service charge amounts.

Why This Matters for You

Restaurants cannot automatically add a service charge to your bill, and they certainly cannot force you to pay it. If you spot a service charge added without your consent, you have the right to refuse it. In July 2022, the CCPA laid out firm guidelines to stop unfair practices in hotels and restaurants regarding service charges. These rules say:

  No restaurant can add service charges automatically or by default.

  Service charge collection under any other name is not allowed.

  Restaurants must clearly tell you that paying a service charge is entirely voluntary.

  You cannot be denied entry or services if you refuse to pay the service charge.

  Service charge cannot be bundled with the food bill or attract GST on the total.

On March 28, 2025, the Delhi High Court upheld these CCPA guidelines, making it clear that restaurants must comply. Yet, complaints continue to pour into the National Consumer Helpline (NCH 1915), reporting that some restaurants are still adding mandatory service charges, an unfair practice under the law.The Central Consumer Protection Authority (CCPA), set up under the Consumer Protection Act, 2019, exists to safeguard consumer rights and crack down on unfair trade practices like unauthorised service charges.

Bottom Line:

Next time you’re dining out in Delhi restauant, remember: Service charge is your choice, not an obligation. Stand your ground, and if you feel pressured, raise your voice, help is just a call away at 1915.