Mumbai: The Central Mumbai District Consumer Dispute Redressal Commission has penalized a Mahim-based South Indian restaurant, Thangabali, for unlawfully charging a service fee to a customer in 2021.
The restaurant has been ordered to refund the service charge of Rs 75, along with interest at the rate of 6% from 2019, to the customer, Ridhina Nagwekar. Additionally, the commission has directed the restaurant to pay to Nagwekar Rs 2,000 for mental agony and Rs 3,000 towards litigation costs.
The incident took place on January 30, 2021, when Nagwekar, a resident of Prabhadevi, visited Thangabali restaurant on Kataria Marg, to enjoy South Indian cuisine. Upon receiving her bill, which totaled Rs 1,393, she noticed that Rs 75 had been added as “service charge”.
Nagwekar raised the issue with the restaurant manager, arguing that service charge is optional and should only be paid at the customer’s discretion. Despite her objections, the manager insisted on the payment.
Feeling compelled to pay the charge, Nagwekar subsequently issued a legal notice to the restaurant management, accusing it of unfair trade practice. When the management failed to respond, she approached the consumer commission and filed a complaint in 2022.
In its defence, the management claimed that it had never forced Nagwekar to pay the service charge and asserted that the issue was fabricated to defame the establishment. However, the commission, after reviewing the evidence, found that the restaurant had indeed included the service charge in violation of multiple court directives, which prohibit the compulsory inclusion of such charges.
The commission stated, “The restaurant’s inclusion of service charge on the bill, despite clear instructions from higher courts to desist, is evidence enough of their fault. The display of the additional taxes and service charge on the menu card also constitutes an unfair trade practice.”
While the order specifies that interest should be paid from 2019, it is noted that Nagwekar’s visit to the restaurant occurred in 2021.
