The District Consumer Forum has ordered a popular restaurant in Hyderabad to compensate a fine to a customer a sum of Rs. 5000. The restaurant has also been ordered to return the excess tax charged as service charge for a customer.
The action took place a year after Vijay Gopal, an anti corruption activist filed a complaint against Ohri’s 100 degrees restaurant in Hi Tech city. The complaint was related to the restaurant levying extra service charge at 10%.
Vijay explained, “Last year, when I went to Ohris 100, I asked the manager about the service charge, they confidently said it is legal and mandatory. I filed a case with Madhapur Police Station under section 420 (cheating) and 418 (Cheating with knowledge that wrongful loss may ensue to person) of the IPC.”
The District Consumer Dispute Redressal Forum ordered the restaurant to refund the Rs. 213 that was paid as service charge by Vijay Gopal. The restaurant also has to pay Rs. 5000 as compensation and Rs. 1000 for the cost of filing the complaint.
A media channel approached Phani Kumar, the CEO of Ohri’s restaurant who refused to comment.
The order stated, “The collection of service charge has no legal right to mention 10% service charge. It is the discretion of the customer to pay the amount after being satisfied with the service provided by the employee or staff of the restaurant. This discretion of the customer cannot be restricted and made mandatory as per the wish of management.”
Secretary of Telangana State Hotel Association, Jagdish Rao commented, “ We have asked all the restaurants to follow the governed rules. It is absolutely fair, as only the customer can decide whether they liked the service of the hotel.”
Vijay also said, “This is unconstitutional and illegal. Most of the cases, people do not say anything so as to avoid verbal fights with the staff. Who wants to go out with your family and spoil one’s mood. It is the responsibility of the restaurants to inform the customer that the service charge is voluntary.”
Vijay Gopal filed another complaint against INOX this year in April. The complaint was filed after he was charged Rs. 50 for a bottle of water that is originally sold at Rs. 20. The Hyderabad Consumer Forum instructed INOX to pay Rs. 5000 as compensation and Rs. 1000 for filing the complaint.
