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: ADVISORY ON LEVYING OF SERVICE CHARGE
Dear Members,
As informed by FHRAI earlier, the Hon’ble Delhi High Court has pronounced its judgment on 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) which held that service charge cannot be charged mandatorily in the bills by the hotels and restaurants and it is a voluntary payment to be made by the customer. The order said that service charge cannot be added to the bill and the customer can pay tips voluntarily.
FHRAI is in the process of taking appropriate legal recourse to uphold the rights of its members to determine their own pricing structures without external interference.
Members are hereby advised that till such time the above-said judgment of the Hon’ble High Court is stayed by the Division Bench or set aside, you shall 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
_____________________________________________________
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 Website: www.fhrai.com