Apex hospitality body objects to EKH DC’s order on service charge

NEW DELHI, Nov 16: The country’s apex hospitality association, Federation of Hotel & Restaurant Associations of India (FHRAI), on Wednesday, opposed the order issued by the East Khasi Hills district administration directing hotels and restaurants not to levy service charges since the same has been stayed by the High Court.
FHRAI had challenged the guidelines on service charges by filing a writ petition before the Delhi High Court which had stayed the order. All directions under the guidelines have been stayed subject to no service charge to be levied on takeaways, and all restaurants shall prominently display in the restaurant that service charge shall be levied, FHRAI said in a letter to the East Khasi Hills DC.
The DC had warned of action against violators of the Central Consumer Protection Authority’s (CCPA) guidelines barring hotels and restaurants from levying service charges by default. On July 4, the CCPA came out with new guidelines barring hotels and restaurants from levying service charges automatically or by default in food bills.
The apex association has also informed the DC that directions of the guidelines dated July 4 2022 remain stayed and cannot be implemented so long as restaurants comply with the agreed conditions.
FHRAI has written to the DC with the objective to place facts and the present status for taking the correct steps as required under the law on the matter of service charge.
FHRAI provides an interface between the industry, government, regulatory bodies, academia, international organisations, civil society and the media.