FHRAI & NRAI fined by Delhi HC

National Restaurant Association of India (NRAI) and Federation of Hotel & Restaurant Associations of India (FHRAI) have been fined Rs. 2,00,000 by the Delhi High Court (HC) for failing to comply with the service charge directions issued on 12th April. The court ordered them to pay this amount as costs for their non-compliance.

Complying with the order, FHRAI paid Rs. 1 lakh to the Department of Consumer Affairs, as was directed in the court order.

The Central Consumer Protection Authority (CCPA) guidelines, which forbid hotels and restaurants from automatically adding a service charge to food bills, were being challenged by Federation of Hotel and Restaurant Associations of India (FHRAI) and National Restaurant Association of India (NRAI).

In an order passed on 12th April, the court had directed the associations to undertake certain actions, including filing a comprehensive list of all their members supporting the writ petitions, by 30th April. Additionally, they were required to submit a specific affidavit addressing key aspects, such as the percentage of members imposing service charges mandatorily in their bills and their willingness to replace the term 'service charge' with alternative terminology to avoid confusion among consumers.

The matter is now scheduled for a hearing on 5th September.