Delhi Diners Duped? Barbeque Nation, Others Accused of Unfair Billing

EN Local Desk
Apr 29
2 min read

New Delhi, April 29, 2025

In a bold move to safeguard consumer rights, the Central Consumer Protection Authority (CCPA) has initiated suo moto action against five prominent restaurants in Delhi for continuing to impose mandatory service charges in violation of judicial orders and consumer protection norms.

The eateries—Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation—have been issued formal notices under the Consumer Protection Act, 2019, directing them to refund unlawfully collected service charges.

The crackdown follows mounting complaints lodged on the National Consumer Helpline (1915), where diners reported being coerced into paying service charges without their consent—despite a Delhi High Court ruling on March 28, 2025, upholding CCPA guidelines that bar such practices.

“These restaurants have violated both the spirit and the letter of the law,” a senior CCPA official told The Times. “The objective is to ensure that consumers are not misled or forced to bear hidden costs.”

The CCPA guidelines, first issued on July 4, 2022, clearly state:
Service charge cannot be added automatically or by default to a food bill.
It must not be disguised under any other name.
Consumers cannot be pressured or misled into paying it.
No denial of services based on refusal to pay the charge.
Service charge must not be included in GST calculations.

Despite the legal clarity, the five named establishments allegedly continued the practice, drawing the CCPA’s attention. The authority has warned that further non-compliance could lead to prosecution, including financial penalties and potential suspension of operations.

Established under Section 10 of the Consumer Protection Act, 2019, the CCPA is empowered to investigate violations of consumer rights, combat unfair trade practices, and penalize misleading advertising.

This latest action underscores a broader push by Indian authorities to clamp down on opaque billing practices in the hospitality sector, aiming to empower consumers with transparent and fair pricing.