Lok Sabha Question No. 1927 (UNSTARRED), answered on 2017-03-14
Subject: Hotel Service Charge
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: OM PRAKASH YADAV, JANARDAN MISHRA, RODMAL NAGAR

(OIH)

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk/k vkSj lkoZtfud foRrj.k ea=h be pleased to state:

- (a) whether the Government has taken any steps to resolve the issue of levying 5 per cent to 20 per cent service charge by hotels and restaurants;
- (b) the number of complaints received by the Government in this regard, State/UT-wise during the last two years;
- (c) whether the Government has constituted any committee to deal with these complaints, if so, the details thereof; and
- (d) if not, the reasons therefor?

## Ministry of Consumer Affairs, Food and Public Distribution

## Government of India Department of Consumer Affairs

## LOK SABHA UNSTARRED QUESTION NO. 1927

TO BE ANSWERED ON 14.03.2017

## HOTEL SERVICE CHARGE

## 1927.   SHRI OM PRAKASH YADAV: SHRI JANARDAN MISHRA:

SHRI NAGAR RODMAL:

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a) : The  Department  of  Consumer  Affairs  has  issued  advisory  to  all the State Governments/UTs  to  sensitise  the  companies,  hotels  and  restaurants    in  the  state  regarding  the relevant provisions of the Consumer Protection Act, 1986 on unfair trade practices and  also to advise the hotels/restaurants to disseminate information through display at the appropriate place in the  hotel/restaurants  that  the  'service  charges'  are  discretionary/voluntary  and  a  consumer dissatisfied with the service can have it waived off.
- (b) : The  details  of  the  complaints  received  by  the  Government  are  given  in  the Annexure.
- (c) & (d) : Under  the  provisions  of  the    Consumer  Protection  Act,  1986,  a  three  tier  quasijudicial  mechanism,  called  Consumer  Fora,  has  been  set  up  at  the  District,  State  and  National levels  to  provide  for  simple  and  inexpensive  justice  to  consumer  disputes.    The  Act  further provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice. A consumer can make a complaint to the appropriate consumer forum established under the Act against:-
- (i) an unfair trade practice adopted by any trader or service provider
- (ii)      the services hired or availed of, suffered from deficiency in any respect
- (iii) a  trader  or  service  provider,  as  the  case  may  be,  has  charged  for  the  goods  or  for  the services a price in excess of the price (a) fixed by or under any law for the time being enforce, (b) displayed  on  the  goods  or  any  package  containing  such  goods,  (c)  displayed  on  the  price  list exhibited by him or under any law for the time being in force or (d) agreed between the parties.

## ANNEXURE

## STATEMENT  REFERRED  IN  REPLY  TO  PART  (b)  OF  LOK  SABHA  STARRED QUESTION NO.1927 FOR 14.03.2017 REGARDING HOTEL SERVICE CHARGE.

-------------------------------------------------------------------------------------------------------------------------

| Service charges related complaints received at NCH   | Service charges related complaints received at NCH   | Service charges related complaints received at NCH   | Service charges related complaints received at NCH   |
|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|
| State                                                | April 2015 - March 2016                              | April 2016 to February 2017                          | Total Complaints                                     |
| DELHI                                                | 9                                                    | 34                                                   | 43                                                   |
| MAHARASHTRA                                          | 4                                                    | 38                                                   | 42                                                   |
| KARNATAKA                                            | 3                                                    | 22                                                   | 25                                                   |
| TELANGANA                                            | 0                                                    | 12                                                   | 12                                                   |
| GUJARAT                                              | 3                                                    | 8                                                    | 11                                                   |
| WEST BENGAL                                          | 0                                                    | 11                                                   | 11                                                   |
| UTTAR PRADESH                                        | 1                                                    | 9                                                    | 10                                                   |
| RAJASTHAN                                            | 0                                                    | 7                                                    | 7                                                    |
| HARYANA                                              | 2                                                    | 4                                                    | 6                                                    |
| Not identified                                       | 0                                                    | 6                                                    | 6                                                    |
| PUNJAB                                               | 2                                                    | 2                                                    | 4                                                    |
| MADHYA PRADESH                                       | 1                                                    | 2                                                    | 3                                                    |
| TAMILNADU                                            | 1                                                    | 1                                                    | 2                                                    |
| UTTRAKHAND                                           | 1                                                    | 1                                                    | 2                                                    |
| ANDHRA PRADESH                                       | 0                                                    | 1                                                    | 1                                                    |
| ASSAM                                                | 0                                                    | 1                                                    | 1                                                    |
| BIHAR                                                | 0                                                    | 1                                                    | 1                                                    |
| CHANDIGARH                                           | 1                                                    | 0                                                    | 1                                                    |
| GOA                                                  | 0                                                    | 1                                                    | 1                                                    |
| JHARKHAND                                            | 0                                                    | 1                                                    | 1                                                    |
| ODISHA                                               | 0                                                    | 1                                                    | 1                                                    |
| Total                                                | 28                                                   | 163                                                  | 191                                                  |

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