The Managing Directors/CEO’s/Directors/Partners/General Managers
All FHRAI Members
CC: All Members of the Executive Committee
All Regional Associations
President FHRAI
Sub: Order of the Hon’ble Delhi High Court on the Service Charge Matter
Dear Members,
As you are aware, FHRAI had challenged the circular of ‘Central Consumer Protection Authority’ CCPA dated 4.7.2022 on the question of levy of Service Charge before the Hon’ble Delhi High Court.
The Hon’ble Delhi High Court has pronounced their Judgment today that is 28.03.2025, in the matter of Federation of Hotels and Restaurants & Ors. v. Union of India & Anr., (W.P. (C) No. 10867 of 2022) as also in the Petition filed by NRAI.
The High Court has dismissed the Petitions and has held that the Guidelines of the CCPA are valid and binding and service charge cannot be charged mandatorily in the bills and it is a voluntary payment to be made by the customer. The same cannot be added to the bill and the customer can pay tips voluntarily.
A link to access the copy of the judgement is given below:
In the meanwhile, till such time the judgment is stayed by the Division Bench or set aside, you are advised to immediately stop levying service charge on mandatory basis or adding the same to the bill. The customers can pay tips voluntarily.
With regards,
Jaison Chacko
Secretary General
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The Federation of Hotel & Restaurant Associations of India
Regd. Off. : B-82, 8th Floor, Himalaya House, 23, K G Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com, Web.: www.fhrai.com