HC stays guidelines prohibiting levying of service charge by restaurants

Justice Yashwant Varma, while dealing with petitions challenging the Central Consumer Protection Authority's 4 July guidelines, said the issue requires consideration and directed the authorities to file their reply.

|Jul 20, 2022, 12:11:07 IST

New Delhi: The Delhi High Court on Wednesday stayed the recent guidelines prohibiting hotels and restaurants from levying service charge automatically on food bills.Justice Yashwant Varma, while dealing with petitions by the National Restaurant Association of India (NRAI) and Federation of Hotels and Restaurant Associations of India challenging the Central Consumer Protection Authority (CCPA)'s 4 July guidelines, said the issue requires consideration and directed the authorities to file their reply.The matter requires consideration. Consequently, until the next date of listing the directions as contained in para 7 of the impugned guideline of July 4, 2022 shall remain stayed, the court ordered.The court said that the stay is subject to the members of the petitioners ensuring that the levy of service charge in addition to the price and taxes and obligation of customer to pay the same is duly and prominently displayed on the menu or other places.Further, the members will also undertake not to levy service charge on any take-away items, it added.If you don't want to pay, don't enter the restaurant. It is ultimately a question of choice. I have stayed the para 7 guidelines subject to these two conditions, the court said.The court listed the matter for further hearing on 25 November.The NRAI has claimed in the petition that the prohibition under the 4 July order was arbitrary, untenable and ought to be quashed as it has been issued without appreciation of the facts and circumstances.Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.

China has dominated Myanmar’s rare earth mines — now India eyes deal to harness country’s critical minerals

India is deepening rare earth cooperation with Myanmar as New Delhi seeks alternative sources of critical minerals dominated by China, including dysprosium and terbium used in EVs, defence systems and clean energy technologies

6 min read

CJP protest in Delhi: New videos of stone pelting, violence emerge as police, agitators trade charges

Fresh videos of violence that broke out during the Cockroach Janta Party's (CJP) protest in Delhi have surfaced, with the police releasing footage showing alleged stone pelting, vandalism and attacks on security personnel

3 min read

'From make in India to launch from India': Skyroot COO on why Vikram-1 could change India’s space sector

Skyroot Aerospace’s successful Vikram-1 mission marks a major milestone for India’s private space sector, as the country seeks to shift from “Make in India” to “Launch from India” and compete in the global commercial satellite launch market

8 min read

Choke terror funding, keep international shipping lanes safe: Jaishankar at Asean Regional Forum

Jaishankar's remarks came against the backdrop of recent terror attacks targeting India and growing threats to commercial shipping amid conflicts in West Asia and Europe

2 min read

PM Modi announces fast-track courts for paper leak cases; CJP responds ‘Dharmendra Pradhan must go’

Amid protests demanding accountability for the leak of medical entrance test Neet and other irregularities in the education system, Prime Minister Narendra Modi has announced that the government has decided to set up fast-track courts to ensure swift and stringent punishment for those involved in paper leaks.