Archive · 31 Dec 2025
Rs 50,000 Penalty on Restaurant for Mandatory Service Charge
A restaurant in Mumbai called Bora Bora was fined Rs 50,000 because it automatically added a 10% service charge to customers' bills.
A customer complained that the restaurant refused to remove the charge, even when asked.
The Central Consumer Protection Authority (CCPA) found that the restaurant was using a software system that automatically added the service charge to all bills from March 28, 2025, to April 30, 2025.
The CCPA said this was against the law and consumer guidelines.
The restaurant was told to change its billing system to stop adding the service charge automatically.
The restaurant said it has stopped adding the service charge, but the CCPA found that the charge was still being added automatically during the specified period.
China Gate Restaurant Private Limited (Bora Bora) was fined Rs 50,000 for including a mandatory 10% service charge by default on bills.
A customer complained that the restaurant refused to remove the service charge when asked.
The CCPA found that the restaurant's software automatically added the service charge to all bills from March 28, 2025, to April 30, 2025.
The CCPA directed the restaurant to modify its billing system to remove the default service charge.
The restaurant claimed it has discontinued the practice, but the CCPA found evidence of automatic service charges during the specified period.
- Who
- China Gate Restaurant Private Limited (Bora Bora restaurant)
- What
- Imposed a Rs 50,000 penalty for including a mandatory service charge by default on bills
- When
- The incident occurred in April 2025, and the penalty was imposed on December 29, 2025
- Where
- Mumbai, India
- Why
- The restaurant included a 10% service charge by default on bills, which is contrary to law and consumer guidelines
- Restaurant Name
- Bora Bora
- Company Name
- China Gate Restaurant Private Limited
- Penalty Amount
- Rs 50,000
- Service Charge Percentage
- 10%
- Service Charge Amount
- Rs 624
- Date of Incident
- April 2025
- Date of CCPA Order
- December 29, 2025
- Duration of Automatic Service Charge
- March 28, 2025 to April 30, 2025
Sources
CCPA continues crackdown on mandatory service charge, fines China Gate restaurant
Rs 50,000 penalty imposed on firm running restaurant over mandatory service charge
Mumbai's Bora Bora Restaurant Fined ₹50,000 For Levying Service Charge By Default On Bills
