Illegal, baseless: Several Delhi restaurant owners oppose CCPA service charge guidelines

Several restaurant and bar owners in Delhi on Monday opposed the Central Consumer Protection Authority (CCPA) guidelines barring them from levying service charges automatically or by default on food bills, saying it is ''completely illegal and baseless''.

Restaurant owners asserted that service charge was not levied discreetly as it is mentioned on the menu and the bill as well.

The CCPA on Monday issued guidelines for preventing unfair trade practices and violation of consumer rights with regard to levying of service charges.

''No hotels or restaurants shall add service charge automatically or by default in the bill,'' the CCPA said in the guidelines.

There should not be any collection of service charge by any other name, it added.

Denouncing the guidelines, Manpreet Singh, treasurer of the National Restaurants Association of India (NRAI), said the government could not tell bar and restaurant owners how to run their businesses.

''It is completely illegal and baseless. First of all, there is no law to support whatever they are saying. It is just an advisory and you cannot impose an advisory on us. It is like telling us how to run our business,'' Singh told PTI.

He claimed that customers are told in advance about service charge and it is mentioned on the menu. Pamphlets and posters are also usually put up at the restaurants, Singh added.

''We are not levying it discreetly,'' he said.

Priyank Sukhija, promoter of First Fiddle Restaurants, which operates bars and fine-dine restaurants such as Lord of the Drinks and Tamasha, said there is no basis for the guidelines issued by the CCPA.

''There is no basis for what they are saying. It is completely against the law. It is a mere guideline, and if required, we will fight it,'' he said.

Gaurav Chhatwal, owner of Chungwa in Greater Kailash II, asked why Indian restaurants were being targeted when service charge is levied across the world.

''I completely disagree with the new guidelines. It is quite senseless. It is mentioned on the menu and bill that we are levying service tax, we are not hiding it,'' Chhatawl said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)