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Five Reasons Why Restaurants Cannot Levy Mandatory Service Charge On Food Bills: Delhi High Court

29 Mar 2025 4 min read
Five Reasons Why Restaurants Cannot Levy Mandatory Service Charge On Food Bills: Delhi High Court

In a significant ruling, the Delhi High Court declared that service charges, often levied by hotels and restaurants, cannot be charged as a mandatory fee and must remain voluntary. This landmark decision was made by Justice Prathiba M Singh on Friday and further strengthens the consumer rights framework in India. The ruling specifically upheld the guidelines issued by the Central Consumer Protection Authority (CCPA) in 2022, which prohibited hotels and…

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