Lagatar24 Desk
New Delhi, Aug 11: The Central Consumer Protection Authority (CCPA) filed an appeal in the Division Bench of the Delhi High Court to challenge the court’s order to suspend the government’s most recent recommendations, which forbade restaurants and hotels from adding service charges to customers’ food bills.
On August 16, the division bench headed by Chief Justice of Delhi will hear the appeal filed by the CCPA.
In addition to staying the execution of the recommendations issued by the Central Consumer Protection Authority prohibiting the levying of service charges by restaurants and hotels, the Delhi High Court issued notice on the case contesting the rules last month.
The Ministry of Consumer Affairs, CCPA received a notification from Justice Yashwant Varma regarding the petition filed by the Federation of Hotels and Restaurants of India (FHRI).
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The single bench further stipulated that eateries must conspicuously indicate service charge components in the pricing of the dish while providing the notice. According to the High Court, restaurants are not allowed to add service fees to food orders for delivery or takeout.
The attorney added that there had been a number of complaints about restaurants barring patrons who had not paid the service charge from entering. According to the appeal submitted by FHRI, the CCPA can only make recommendations. The most recent regulations prohibiting the imposition of a service charge are arbitrary.
The court is currently hearing a similar petition challenging the new rules. The National Restaurant Association of India initiated this petition (NRAI).
