Delhi HC upholds ban on mandatory service charge in restaurants
Good news for diners: the Delhi High Court has upheld the rule that restaurants can't automatically add a service charge to your bill.
This move, announced in March 2025, means eating out should get a bit cheaper across India.
The Ministry of Consumer Affairs says making people pay extra like this is unfair and has warned of penalties; the CCPA has imposed penalties — in some cases up to ₹50,000 — on restaurants found violating the guidelines.
27 restaurants were fined
The CCPA has fined 27 places—including Cafe Blue Bottle in Patna and China Gate in Mumbai—for sneaking in those charges.
Barbeque Nation even had to refund a customer after they complained about an extra ₹335.
All fined restaurants now have to return wrongly charged fees, stop the practice, and update their billing systems.
Key points from the ruling
The court made it clear: mandatory service charges are not allowed.
Restaurants can't impose automatic or mandatory service charges, and cannot deny you service for refusing to pay such a charge—so it's your choice, no pressure.