Indian Restaurants slam New Rules of no service charges

There were new government guidelines that forbid Indian restaurants from imposing service charges on their customers.

Highlights

• A new rule was given by the government against compulsory service charges. 
• The service charges were called illegal and hurtful
• Indian restaurants are slamming this rule. 
• More than 500,000 restaurants are against this new rule.

A group of Indian restaurants slams the new rule of not taking no service charges. The restaurants are objecting to the guidelines that prevent them from automatically levying charges on bills.

They are saying that it is not illegal. This move will also hurt the livelihood of millions of the employees of the restaurants. 

On Monday, the watchdog of India’s consumer protection said the charge, which is in bills of restaurants in a cloak of the tip, is an unfair trade practice. It is a violation of consumer rights and it should only apply at the customer’s discretion.

But the restaurants said that they have put the charges on the notices at the gates and on menus. If someone wants to use their services, they are to pay these charges.

 Indian Restaurants says: it’s not illegal

The National Restaurant Association of India(NRAI) which represents more than 500,000 Indian restaurants said that there is no illegality in allowing such a charge.

They also said in their statement that no authority can interfere in the decision of an owner of a restaurant and a new law or a new amendment has only the right to change this.

Restaurants argue for a long that the charge is not unfair as it is given equally among the waiters, cooks, and other staff and is not a part of the profit. An NRAI trustee, Anurag Katriar who runs a popular outlet said that the service charge is nearly half of a normal restaurant worker’s salary.

Katria further said that they feel this guideline is not legally bound, thus creating confusion in the mind of consumers and creating anxiety for the poor workers of the restaurants. He also said if this confusion remains for long, they will forcefully go to court for some clarity. 

The introduction of new guidelines was after many customers complained about the Indian restaurants levying a service charge compulsorily and even embarrassing those who don’t want to pay it.

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