Mumbai restaurant fined ₹25,000 for levying ‘mandatory’ service charge: ‘Highly objectionable, not justified’

A Mumbai restaurant has been fined ₹25,000 by the District Consumer Commission for levying a ‘mandatory’ 5% service charge on the bills of one of its customers. The commission also ordered the restaurant to refund the service charge of ₹29.

Okružno povjerenstvo za potrošače naložilo je restoranu u Mumbaiju da vrati naknadu za uslugu zajedno s kompenzacijom od    The District Consumer Commission ordered the Mumbai restaurant to refund the service charge along with a compensation of ₹25,000.  (Representative picture)   

<p>According to a Times of India (TOI) report, a lawyer named Yogesh S. Patki filed a complaint before the South Mumbai District Consumer Disputes Redressal Commission against Girgaon-based Cream Center owner Prince Cuisines Pvt Ltd in 2017. The commission has now ruled in its favour.  attorney and called the fee for the service “highly objectionable” and “illegal.”</p>
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<p>The commission said: “It is a range of additional services that complete the experience of customers who choose to dine at the restaurant.  Constructing this narrative to collect 5 percent mandatory service charge from users is highly undesirable as well as illegal and therefore cannot be justified at all.”</p>
<p>The commission also stated that if a restaurant levies a mandatory service charge on food and beverage bills, it implies that the services provided are of a certain standard and quality.  This is because the restaurant offers a number of other services, including restaurant ambience, air conditioning, dishes, carpets, furniture and staff, including waiters, for service.</p>
<p>The committee further pointed out that tipping is between the guest and the service staff and that the hotel management has nothing to do with it.</p>
<p>It was also pointed out that the service charge and service tax were mentioned on the menu card in one line, leading customers to believe that it was a ‘statutory levy’.  The commission further ordered the restaurant to stop charging mandatory service charges.</p>
<p>In response to Patka’s complaint, the company said it is a leading foodservice provider and imposes fees on customers who only dine in the restaurant.  The restaurant further emphasized that the service charge was displayed throughout the restaurant, including the entrance, reception and menu.</p>
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Source: newstars.edu.vn

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