New Delhi

The fight over service charges at restaurants escalated as the National Restaurant Association of India (NRAI) on Wednesday said that the new government guidelines have no legal stand and have created unnecessary confusion among the consumers, leading to disruption in smooth business operations of hotels and restaurants.

The Central Consumer Protection Authority (CCPA), which comes under the Ministry of Consumer Affairs, has issued guidelines for preventing unfair trade practices and violation of consumer rights with regard to the hotels and restaurants levying a service charge, stating that the consumer may lodge a complaint with the National Consumer Helpline (NCH) against such practice.

The NRAI, which represents more than five lakh restaurants in the country, said in a statement on Wednesday that through these guidelines, there is an attempt to start a campaign against the restaurant industry practice without any legal basis.

According to the NRAI, the government cannot bring about a change insofar as a levy of service charge is concerned by making guidelines.

"Guidelines by the very nature of things are only for guidance and in case there is a need for such change, there has to be either a new law or an amendment in the existing laws," NRAI has stated.

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The guidelines issued by the CCPA on Monday stipulate that hotels or restaurants shall not add service charge automatically or by default to the food bill.