Centre moves Delhi High Court over ban on service charge at restaurants

The Central Consumer Protection Authority has approached the Delhi High Court over a ban on service charges at restaurants.

The Central Consumer Protection Authority (CCPA), which comes under the Union Ministry of Consumer Affairs, Food and Public Distribution, has approached the Delhi High Court challenging the court's decision to stay the recent guidelines issued by the government, restraining the levy of service charges on food bills by eateries.

The decision of the single-judge bench of the Delhi High Court to put a hold on the government's decision to levy a service charge on a consumer by restaurant and hotel owners was challenged in the CCPA petition.

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The matter is likely to be heard in Delhi High Court on August 16.

The Single Bench of Delhi HC, after hearing the petition of the Hotel Restaurant Federation, had stayed the collection of service charges by the government.

Earlier, in June, the consumer affairs ministry had asked eatery associations to stop levying service charges in their bills compulsorily, calling it illegal. The ministry had also said it will come out with a legal framework to end this practice.