The debate on the issue has been raging since the January 2 notification of the government asking restaurants to put up notice making service charge optional.
"Service charge should be completely done away with. Hotels and restaurants inflate bills in the name of this charge which is absolutely illegal," said Mahapatra.
This, however, requires legal clarity which can only come from the judiciary and someone has to file a writ petition in this regard, he added.
"Government can allow competition based on quality, quantity and location. Consumers cannot be charged service charge, it is unfair trade practice," he said, adding, "State governments must bring an ordinance to make it mandatory not to take service charge over and above the price."
Similarly, Mahapatra said, "The Centre's approach in making service charge an option is wrong. They are supposed to make laws which are binding and not give options."
As per the government notification, hotels and restaurants are required to put up a notice that it is the sole discretion of a consumer to pay the service charge or have it waived.
"Restaurants can be penalised if they do not put up notice as per government direction. Consumer Protection Act 1986 protects you from any deficiency in services," Pattjoshi said.
Asking consumers to get an FIR lodged against such restaurants, Misra said, "In case a restaurant charges service charge, pay the same and report the matter to the nearest police station and get an FIR. Once several consumers do that then they can claim compensation from the restaurant as it is deemed to be unfair after the Government notification."
He further said, "Under Consumer Protection Act 1986 it is deemed as Unfair Trade Practice as it charges more than the printed price. However, clarity from the Centre and a strong law with stringent punishment for overcharging is desirable."
The Centre's notification has said that it received several complaints from consumers alleging that restaurants are taking 'service charge' in lieu of tips, which they are forced to pay irrespective of the kind of service provided.
It had said it is the discretion of the consumer and no restaurant/hotel can force anyone to pay service charge.
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