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2h ago

Delhi High Court Questions Above-MRP Pricing, Declines Relief in Service-Charge Case

The division bench invoked Legal Metrology rules to press industry bodies to explain separate levies for ambience and service.

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To illustrate its point, the bench cited the example of a water bottle priced at ₹20 MRP being billed at ₹100 in a restaurant — broken down as ₹80 for ambience and ₹10 as service charge. (HT Archive)
The High Court posed the questions to the counsel representing the associations for hotels and restaurants.
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Overview

  • Chief Justice D.K. Upadhyaya and Justice Tushar Rao Gedela asked how restaurants can sell items over MRP and then add a service charge.
  • The bench cited a ₹20 MRP water bottle billed at ₹100 as an example, with ₹80 attributed to ambience and ₹10 as service charge.
  • NRAI and FHRAI are appealing a March order that held service charges are voluntary and cannot be added by default.
  • The court refused interim relief to the industry groups and listed the appeals for final hearing on September 22.
  • The CCPA, represented by ASG Chetan Sharma, told the court that several restaurants continue to levy service charges despite the earlier ruling.