Overview
- Regulators found the restaurant’s software auto-added a 10% service charge and applied GST on that amount, breaching consumer guidelines.
- The investigation determined the default fee appeared on all bills from March 28 to April 30, 2025, showing it was not discretionary.
- The case followed a National Consumer Helpline complaint from a Mumbai diner who said the outlet refused to remove the charge and misbehaved when challenged.
- CCPA directed the company to remove any default service fee from its billing system and keep consumer grievance channels functional at all times.
- The authority referenced a Delhi High Court ruling that deems mandatory service charges illegal and warned that non-compliance could draw fines up to ₹10 lakh for a first offence and ₹50 lakh for repeat violations.