No more surprise charges on your food bill. The government and Delhi High Court have ruled that restaurants cannot force diners to pay service charges—here’s what it means for you. (Representative Image: Canva)
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Moneycontrol13-02-2026, 18:13

Mandatory Restaurant Service Charge Illegal: What Diners Need to Know

  • Government declares mandatory restaurant service charge illegal and an unfair trade practice.
  • Delhi High Court upholds CCPA guidelines, ruling against compulsory service charge collection.
  • CCPA guidelines state restaurants cannot automatically add service charge, nor can they deny service for refusal to pay.
  • 27 restaurants, including China Gate and Cafe Blue Bottle, penalized for unfair trade practices.
  • Diners can now refuse to pay service charge; violations can be reported via National Consumer Helpline.

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