India’s restaurant and hotel associations have challenged a March Delhi High Court ruling prohibiting them from compelling customers to pay service charges or tips, sources said.
The National Restaurants Association of India (NRAI), representing over five lakh restaurants, argued in its petition that levying service charges is neither illegal nor an unfair consumer practice. The NRAI emphasized that this transparent system is practiced globally.
Hotel associations further contended that service charges help ensure fair distribution of tip amounts among staff, according to people familiar with the matter.
The case is expected to be heard by a division bench of the Delhi High Court on Tuesday.
source:ET
