In a major development in the world of hospitality and eateries, the Delhi High Court ruled that service charges and tips are voluntary. This means that these charges, which are often added to the final bill, are therefore not mandatory for consumers.
And consumers can pay depending upon their volition. This is binding on restaurants and hotels alike.
Delhi High Court
The Delhi High Court held this decision after rejecting two petitions filed by industry bodies. The two industry bodies litigating the matter, whose petition was dismissed, were the Federation of Hotels and Restaurant Associations of India (FHRAI) and the National Restaurant Association of India (NRAI).
The bodies were challenging the Central Consumer Protection Authority (CCPA) guidelines. These guidelines prohibit hotels and restaurants from levying service charges “automatically or by default” on bills.
This is a developing story, more details will soon be added
