Delhi HC raps restaurant association over levying service charge, inflated MRP
PTC News Desk: The Delhi High Court on Friday criticized the restaurant association over the practice of levying service charges, questioning why customers are being charged extra when prices are already inflated in the name of providing an experience.
The high court division Bench on Friday said restaurants were charging the visitor under three components -- food items sold, providing ambience and serving.
"You (restaurants) are charging more than MRPs, for the experience being enjoyed by the person visiting your restaurant. And you're also charging the service charges for the service rendered... providing an ambience for certain kind of experience will not include the services you're providing? This we don't understand," the bench said.
The court was hearing an appeal filed by the restaurant associations against a single-judge order. In March, the single judge had ruled that restaurants cannot impose service charges on food bills in a “camouflaged and coercive” manner, as it violates public interest and constitutes an unfair trade practice.
A Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela posed the query to the counsel representing the associations for hotels and restaurant, who moved court against a single judge's order.
The Bench cited an example while addressing the counsel for the National Restaurant Association of India (NRAI) and the Federation of Hotels and Restaurant Associations of India (FHRAI), asking why customers should pay an additional service charge when restaurants are already charging ₹100 for a water bottle that costs ₹20.
- With inputs from agencies
