India’s Central Consumer Protection Authority (CCPA) fined Mister Chai at Shangri-La Eros New Delhi ₹100,000 after finding it placed a 10% service charge on bills by default, leaving diners to request its removal.
The order, dated Oct. 22, 2026, examined two invoices from 2025. On May 30, Mister Chai added ₹435 to a ₹4,350 food subtotal; on June 10, it added ₹125 to a ₹1,250 subtotal. In both cases, goods and services tax (GST) was calculated after the service fee was included.
Shangri-La Eros told the CCPA its menu described the charge as discretionary and customers could ask for a waiver. The authority found that this still left diners with the task of spotting and disputing a fee already on the bill. It ordered Mister Chai to stop collecting the charge automatically, including under another name.
The CCPA’s July 4, 2022, guidelines prohibit restaurants from adding service charges by default, requiring customers to pay them, refusing service when a customer declines, or adding the fee to the food bill before calculating GST. The Delhi High Court upheld the guidelines on March 28, 2025. It said restaurants may include service costs in menu prices, while tips must remain the customer’s choice.
The case comes amid wider enforcement. In a Jan. 10, 2026, release, the Ministry of Consumer Affairs, Food & Public Distribution said the CCPA had taken action concerning 27 restaurants. The ministry listed penalties of ₹30,000 for Café Blue Bottle in Patna and ₹50,000 for China Gate Restaurant Private Limited’s Bora Bora outlet in Mumbai.
Shangri-La Eros told the authority it had refunded the complainant and would end the practice from Oct. 1, 2026. The order requires Mister Chai to submit a compliance report within 15 days of receiving it.
