No Mandatory Service Charge: Centre As Restaurants Across India Slapped With Hefty Fines | India News
Last Updated:February 10, 2026, 22:14 IST The Centre said enforcement action will continue to ensure compliance and protect consumer rights. Representative Image The Centre on Tuesday said that levying a mandatory service charge on food bills violates consumer protection laws, warning that restaurants engaging in the practice are liable to face penalties. The Ministry of Consumer Affairs, Food and Public Distribution said the Central Consumer Protection Authority (CCPA) has taken action against 27 restaurants across the country for what it described as “unfair trade practices”. The action was initiated suo motu under the Consumer Protection Act, 2019, which prohibits the compulsory collection of service charges. According to the CCPA, automatically adding a service charge to a customer’s bill is unlawful. The authority cited violations under Section 2(47) of the Act, which defines unfair trade practices. As part of the enforcement drive, Café Blue Bottle in Patna was fined Rs 30,000, while Mumbai-based restaurant China Gate was penalised Rs 50,000 for levying a default 10 per cent service charge on customers. The ministry noted that the …
