The Central Consumer Protection Authority (CCPA) on Wednesday said it will challenge the Delhi High Court’s decision to stay the recent guidelines issued by the government, prohibiting restaurants and hotels from levying service charge on food bills.
On the high court’s order on service charge, CCPA chief commissioner Nidhi Khare said the court has stayed the guidelines of July 4, related to service charge. The matter is listed for further hearing on November 25
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The July 4 guidelines — issued by the CCPA — barred hotels and restaurants from levying service charges automatically or by default in food bills. It allowed customers to file complaints in case of violation.
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We are going to challenge the order. We are examining and will take appropriate steps so that we are heard,” Khare told reporters.
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Hearing a petition filed by the National Restaurant Association of India (NRAI) and Federation and Restaurant Associations of India that challenged the July 4 guidelines, the high court on July 20 ordered a stay.
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Justice Yashwant Varma, while hearing the petition, had said the issue requires consideration. He directed the CCPA to file its reply and listed the matter for further hearing on November 25.
Restaurants and hotels generally levy a service charge of 10 per cent on the food bill. The guidelines said there should not be any collection of service charges by any other name.
Source : Business Standard
