In re Cafe Delhi Heights (A Unit of Batra Bros Food and Beverages Pvt. Ltd.) (CCPA Delhi)
Summary: The Central Consumer Protection Authority (CCPA) took suo-moto cognizance of grievances received through National Consumer Helpline 1915 between 28th March, 2025 and 31st March, 2026 alleging levy of unconsented or forced service charges by Cafe Delhi Heights, a unit of Batra Bros Food and Beverages Pvt. Ltd., in the guise of “(Proposed Service Charge)(Staff Contribution)” and refusal to remove the charge upon request. The grievances included allegations from consumers in Uttar Pradesh, Haryana and Delhi that service charges had been added to their bills without consent or had not been removed upon request. The consumers had attached copies of the relevant bills.
The CCPA referred to the judgment dated 28th March, 2025 of the High Court of Delhi in National Restaurant Association of India & Ors. v. Union of India & Anr., under which the applicability of the CCPA guidelines was upheld and mandatory service charge was declared contrary to law and violative of the guidelines. The CCPA thereafter conducted a preliminary inquiry under Sections 18(2) and 19 of the Consumer Protection Act, 2019.
In its preliminary inquiry, the CCPA prima facie found that the restaurant had levied service charge in the guise of “(Proposed Service Charge) (Staff Contribution)” despite the Delhi High Court having upheld the Guidelines to Prevent Unfair Trade Practices and Protection of Consumer Interest with Regard to Levy of Service Charge in Hotels and Restaurants, 2022. Since the bill was software generated, the CCPA considered that the practice might have impacted a wider base of consumers and treated it as a fit case for class action under Section 10 of the Consumer Protection Act, 2019.
