At Delhi's Hauz Khas Village, all restaurants have put up notices saying service charge is mandatory.
Two days after a Central government advisory made paying service charge at a restaurant voluntary, restaurants in the national capital have dug in their heels, insisting on levying the charge. Service charge, which ranges from 5 to 20 per cent of the bill and is added to it instead of tips, cannot be forced on the customer, the government had said.
The apex body of restaurants in India, NRAI (National Restaurant Association of India), has written to the Department of Consumer Affairs, asking it to withdraw the advisory, saying there was nothing illegal about the fee. Its president has claimed that the order may affect 8.5 million people working with the food service industry.
"The government has not changed the law, so there is nothing illegal in it (service charge)," Prakul Kumar, National Restaurant Association of India Secretary General told NDTV.
The Federation of Hotel and Restaurant Associations of India or FHRAI, too, has asked the Ministry of Consumer Affairs to withdraw the note.
At Delhi's Hauz Khas Village, all restaurants have put up notices saying service charge is mandatory.
At the famous restaurant "Social", a notice has been put in a very visible spot that said a "10 per cent service charge will be levied". "It doesn't matter what government says. We have been asked to charge it madam. This money comes to us only," a server said.
The manager confirms his claims. "All restaurants are levying service charge," he said. "We have put up notices and it is mentioned in our menu as well. All restaurants will continue to charge this. It is for the servers. It doesn't come to our pockets," he added.
Another restaurant, too, refused to waive the service charge. Their claim -- the government notification has not reached them. "We have no knowledge of this notification, our owners have asked us to continue charging it," the server said.
Asked how the government intends to implement its order in face of such opposition, Consumers Affair Secretary Hem Kumar Pandey refused to comment. "Service charge is an unfair trade practice. The consumers should not be party to this," was all he said.