Noida Restaurant Staffers, Customers Clash Over Rs 970 Service Charge; 5 Arrested

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posted by: Depalina Day

Last updated: June 19, 2023 at 10:47 PM IST

The clash allegedly erupted after a heated argument between the two sides in which one customer demanded from the group of about a dozen people that the 10 per cent service charge charged on their bill be cancelled.  (representative image / ANI)

The clash allegedly erupted after a heated argument between the two sides in which one customer demanded from the group of about a dozen people that the 10 per cent service charge charged on their bill be cancelled. (representative image / ANI)

Among those arrested were three restaurant workers and two from the group of customers after counter-complaints were filed on behalf of both sides, and FIRs filed by the police for riot and assault.

On Monday, officials said a scuffle broke out between some restaurant workers and a group of customers, including women, inside a mall here, prompting police to investigate and arrest five people.

Among those arrested were three restaurant workers and two from the group of customers after counter-complaints were filed on behalf of both sides, as filed by the police on charges of rioting and assault, they said.

An official said the clash allegedly erupted after a heated argument between the two sides, with one customer demanding that the group of about a dozen people cancel the 10 percent service charge on their bill.

The official said the customer’s concern was first taken up with a waiter and then escalated to the manager and an argument broke out with a customer over the issue before men on both sides got into clashes.

According to the ‘Float by Duty Free’ restaurant, the customers’ bill of Rs 11,209 including tax and 10 per cent service charge of Rs 970 remains unpaid due to the fight and their property sustained damage while some employees were also injured.

Deputy Commissioner of Police (Noida) Harish Chander said the incident occurred on Sunday evening at the restaurant located in Spectrum Shopping Mall in Sector 75, within the boundaries of the Police Station of Sector 113.

“There was a fight between the two sides – the group of customers and the restaurant staff – over the payment of service charges. The cases were filed on the basis of the complaint received from both sides. Those involved in violence will be arrested,” Chander said Monday morning.

An official at the Sector 113 police station said Monday afternoon that five people had been arrested in connection with the case and that police had received video evidence of members of both sides involved in violence.

Two forms of preliminary information reports were filed on each of the Indian criminal articles 147 (rioting), 323 (assault), 504 (insult to provoke a breach of the peace), 506 (criminal intimidation), and 354 (assault with intent to offend women’s modesty). ), the official said.

The issue of charging restaurants a service fee on top of government taxes has long been a headache for consumers as well as the hospitality industry. One such petition is currently being heard by the Delhi High Court, with the next hearing scheduled for July 24.

On April 12 this year, the Delhi High Court said its previous order to stop a ban on automatic charging of service charges on food bills could not be shown to customers in a way that suggested the charge had been approved by them.

Justice Prathiba M Singh also noted that the phrase “Service Charge” gives the impression that it is a government subsidized tax and asked the petitioners to specify if they had any objections to changing the term to “Employee Fee” or “Employee Welfare Fund” etc. to avoid any confusion.

The judge asked the petitioners – the National Restaurant Association of India (NRAI) and the Federation of Hotel and Restaurant Associations – to specify the percentage of their members who charge service charges as a mandatory requirement and directed them to submit their affidavits on the enquiries.

Meanwhile, quoting the court order, NRAI President Varun Khera said charging the service charge is the sole discretion of the restaurant.

“Earlier there was a misconception among some people that restaurants cannot charge service charges. However, a court order ruled that restaurants can charge service charges as long as they make it clear to customers,” Khera told PTI.

“If the service fee is mentioned in the menu card, it means that the customer is aware of it and has the option to exit if he does not agree with the condition,” he said.

He said there is also a situation where customers ask the restaurant to remove the service charge and they accept it.

However, since the onset of the COVID-19 pandemic, the situation has been difficult financially for restaurants and the hospitality industry in general, so not many agree to give up service charges.

(This story was not edited by the News18 staff and was published from a syndicated news agency feed – PTI)

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