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 1. News
 2. Cities
 3. Delhi
 4. Pay Rs 1 lakh each for ‘non-compliance’: HC asks restaurant bodies


PAY RS 1 LAKH EACH FOR ‘NON-COMPLIANCE’: HC ASKS RESTAURANT BODIES


THE NATIONAL RESTAURANT ASSOCIATION OF INDIA AND THE FEDERATION OF HOTEL &
RESTAURANT ASSOCIATIONS OF INDIA ARE TO TO PAY RS 1 LAKH EACH TO THE DEPARTMENT
OF CONSUMER AFFAIRS, GOVERNMENT OF INDIA

By: Express News Service
New Delhi | Updated: July 28, 2023 03:09 IST

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The Delhi High Court gave the order on July 24. (Express File Photo)
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The Delhi High Court recently imposed a cost of Rs 1 lakh each on the National
Restaurant Association of India (NRAI) and Federation of Hotel and Restaurant
Associations of India (FHRAI) for non-compliance with HC’s previous order.

The HC was hearing pleas moved by the petitioner associations challenging July
4, 2022 guidelines issued by the Central Consumer Protection Authority
prohibiting hotels and restaurants from levying service charges “automatically
or by default” on bills.

On April 12, the HC had directed the petitioners to file a complete list of all
members who are supporting their pleas by April 30. The HC had further asked the
petitioners to file an affidavit about the percentage of their members who
impose the service charge as a mandatory condition in their bills. It had asked
associations to file if members would have any objection if the term ‘Service
Charge’ is replaced with alternative terminology to prevent confusion in the
consumer’s mind that it is not a government levy.

The HC had asked petitioners to state the percentage of members who would be
open to informing their consumers that the service charge is not mandatory and
they can contribute willingly.

On July 24, a single judge bench of Justice Prathiba Singh noted that neither of
the petitioners had filed the affidavits in terms of the April 12 order.

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“The clear impression that court gets is that petitioners are in complete
non-compliance of orders dated 12th April, 2023 and had filed affidavits without
serving the respondents properly so as to ensure that the hearing does not
proceed before this court,” the HC said.

Additional Solicitor General Chetan Sharma, appearing for the Union of India,
said “Approximately 4,000 more complaints have been received from consumers” who
had complained that service charges were being imposed by the petitioner
associations and its members.

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“Accordingly, one last opportunity is granted to the petitioners to properly
file these affidavits within four days subject to payment of Rs.1,00,000 as
costs in each of the petitions…be paid to the Pay and Accounts Office,
Department of Consumer Affairs, New Delhi…,” the HC said adding that if the cost
is not deposited the affidavits will not be taken on the court’s record.

The matters are now listed on September 5.


First published on: 27-07-2023 at 17:45 IST
 * Tags:
 * delhi high court
 * Service charge


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