Gurugram restaurant ordered to pay Rs 31,000 for forcing 10% service charge

A consumer commission in Gurugram has directed a restaurant to pay Rs 31,000 as compensation and litigation costs to a woman who was made to pay a 10 per cent service charge on her dinner bill despite her objection. The restaurant must also refund the Rs 401 it collected as the charge.

The District Consumer Disputes Redressal Commission held that the restaurant committed a deficiency in service and adopted an unfair trade practice. The bench comprised President Sanjeev Jindal and members Jyoti Siwach and Khushwinder Kaur.

The woman May visited the restaurant on May 16, 2026, for dinner with her friends. After the meal, when she received the bill, she found that the restaurant had allegedly added a service charge of Rs 401, amounting to 10 per cent of the bill. The commission ordered Rs 20,000 for mental harassment and inconvenience and Rs 11,000 for litigation expenses. With the Rs 401 refund, the restaurant owes Rs 31,401 in all.

Also Read: Michael Burry doubled his bet against Nasdaq-100, warns of AI stock market correction

"The OP in the present case not only committed a severe deficiency in service, but also adopted an unfair trade practice," the order said.

The commission also ordered payment of the amount within 45 days from the date of uploading that order, "failing which the amount will attract interest at the rate of 12% per annum, for the same period, till actual realisation,”

The Central Consumer Protection Authority's 2022 guidelines prohibit hotels and restaurants from adding service charges automatically to bills or making them compulsory. Paying a service charge is completely optional for diners in India; hotels and restaurants can't deny service or force a charge on consumers.