Mumbai restaurant slapped with fine for forcing service charge
China Gate Restaurant Private Limited, which runs the Bora Bora outlets in Mumbai, has been fined ₹50,000 by the Central Consumer Protection Authority (CCPA) for making diners pay a mandatory 10% service charge and even charging GST on it—something that's supposed to be totally optional.
The penalty was announced on December 29, 2024.
How it all unfolded
The whole thing started when a customer complained after being forced to pay ₹624 as service charge—and reportedly faced rude behavior from staff.
CCPA's investigation found the restaurant was auto-adding this fee to every bill between March 28 and April 30, 2025.
Despite several warnings, the restaurant didn't fix things or respond properly until authorities stepped in.
What happens next
CCPA called out the practice as unfair under consumer law and ordered Bora Bora to update its billing system, set up real ways for customers to complain, and show proof of compliance within 15 days.
This move follows a recent Delhi High Court decision backing bans on mandatory service charges.