Consumer Authority Takes Suo Motu Action Against 5 Delhi Restaurants for Illegally Imposing Service Charges

The Central Consumer Protection Authority (CCPA) has taken suo motu action against five Delhi restaurants - Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation for failing to refund illegally imposed service charges, despite a Delhi High Court ruling on March 28, 2025, upholding the voluntary nature of such charges.

Notices have been issued under the Consumer Protection Act, 2019, directing these establishments to refund the collected amounts.

This enforcement follows complaints received via the National Consumer Helpline (1915) about the continued imposition of service charges without prior consent.

The NRAI has appealed the HC judgment, set for hearing on May 9.