Delhi High Court Questions Legality Of Charging Above MRP And Mandatory Service Charge By Restaurants

The Delhi High Court questioned how restaurants can charge above the Maximum Retail Price (MRP) for food items while also levying a separate service charge.

A Division Bench led by Chief Justice DK Upadhyaya raised concerns during an appeal by NRAI and FHRAI against a single judge ruling that held service charges and tips to be voluntary.

The Court observed that ambience and hospitality should fall within the service charge, not as an additional price over MRP.

The matter, involving the 2022 CCPA guidelines prohibiting automatic levy of service charges, will be heard finally on September 22. 

[National Restaurant Association v. Union Of India & Anr]