Mumbai Restaurant Fined Rs 50,000 for Mandatory Service Charge by Consumer Protection Authority
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Mumbai Restaurant Fined Rs 50,000 for Mandatory Service Charge by Consumer Protection Authority

The Central Consumer Protection Authority (CCPA) has fined China Gate Restaurant Private Limited, which operates Bora Bora restaurants in Mumbai, Rs 50,000 for illegally levying a mandatory 10% service charge. This action followed a consumer complaint alleging the restaurant refused to remove the charge and misbehaved when questioned. The CCPA cited a Delhi High Court ruling that upheld guidelines declaring mandatory service charges illegal, noting the restaurant continued the practice despite this. The fine also accounts for charging GST on the service charge and issues with grievance redressal.

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