The Central Consumer Protection Authority (CCPA) has fined Shangri-La Eros hotel in New Delhi ₹1 lakh for automatically adding a 10% service charge to food bills at its Mister Chai restaurant. The authority held that the practice was unfair because customers were required to opt out after the charge had already been added, rather than giving affirmative consent before payment.

The case highlights how seemingly small billing practices can damage trust in premium hospitality brands. Guests may accept menu prices, but discovering an additional 10% charge at the payment stage can create the impression of a hidden cost or misleading billing—even when the charge is mentioned on the menu.

The CCPA order, passed by chief commissioner Nidhi Khare and commissioner Anupam Mishra, noted that the hotel had informed the authority in late September that it would discontinue the practice from 1 October. The hotel had argued that the service charge was discretionary and optional, but the authority rejected the opt-out structure as insufficient to establish genuine customer consent.

The complaint was supported by invoices showing a service charge of ₹435 on a subtotal of ₹4,350 and ₹125 on a subtotal of ₹1,250. GST was subsequently levied on the higher amounts after the service charge had been added.

The CCPA held that adding the charge automatically and requiring customers to request its removal placed the burden on guests. In an upscale hotel, questioning a bill or asking staff to remove a charge can also create social pressure, making the payment appear voluntary in theory but difficult to refuse in practice.

Why Automatic Service Charges Hurt Hotel Trust

Luxury hotels sell more than food and accommodation. Their brand promise is built around predictability, care and transparency. An unexpected charge at checkout can undermine that promise and make guests feel that the business is prioritising revenue extraction over the overall experience.

The impact can extend beyond a single visit. Guests may share bills, post reviews or discuss the experience on social media. Even if a charge is later refunded, the impression that consent was not obtained upfront may remain.

The addition of GST on the service charge can amplify the concern. In the invoices cited in the order, the hotel first added 10% to the food subtotal and then calculated GST on the inflated amount. Customers may view this as compounding an unauthorised charge.

The CCPA also held that a refund after payment did not cure the violation. Consent, it said, must be free, prior and informed—not obtained only after the customer has noticed the charge and challenged it.

How Technology Can Prevent Unauthorised Charges

Technology can help hotels make the optional nature of any service contribution clear and ensure that consent is recorded before payment.

POS billing systems should remove service charges from default bill templates. If a guest chooses to make a voluntary contribution, staff should select a separate option only after receiving approval.

Digital and QR menus can display food prices, taxes and any optional contribution before an order is placed. At checkout, tablets or mobile payment screens can ask: “Would you like to add a voluntary service contribution? Yes / No / Custom amount.”

E-bills and payment links should show separate lines for food, GST and any voluntary contribution. A bundled total that hides the charge makes it harder for guests to understand what they are paying for.

Hotels can also use customer relationship management and feedback tools to send receipts after a visit and ask whether the billing process was clear. Recurring complaints can then be identified and addressed early.

AI-powered compliance checks can scan sample bills for unauthorised line items, renamed charges or GST applied to service charges. Staff-training applications can use short bill simulations and scripts to help employees explain optional contributions without pressuring guests.

The central rule is simple: the default should be “no service charge”. Any contribution should require an affirmative choice by the customer. CCPA guidelines prohibit automatic addition, collection under another name, coercion, entry restrictions and GST on a service charge added to the food bill.

How Guests Can Protect Themselves

Guests can take several steps to protect themselves when dining at hotels and restaurants:

Check the menu before ordering. Look for terms such as “service charge”, “staff contribution”, “voluntary contribution” or “applicable charges”.

Ask before ordering: “Is any service charge added automatically? Can I choose not to pay it?”

Review the bill line by line before paying. Check whether a 5% or 10% charge has been added and whether GST has been calculated on it.

Do not feel pressured to pay. A service charge or tip is voluntary, and refusing it cannot be used to deny entry or service under the CCPA guidelines.

Ask for a revised bill rather than merely requesting a refund. The charge and any GST calculated on it should be removed before payment.

Keep evidence by photographing the menu, bill, payment screen and any written communication with the restaurant or hotel.

Guests can complain through official channels, including the National Consumer Helpline at 1915, the NCH app or the e-Daakhil portal. Reviews should mention the specific billing issue, date and resolution without making unverified accusations.

The Shangri-La Eros case serves as a reminder that transparent billing is central to customer trust. For hotels and restaurants, obtaining clear consent before adding any optional contribution is not only a compliance requirement but also an important part of protecting the guest experience and the brand's reputation.

India’s apparel industry is approaching the festive season with optimism, but rising input costs and growing competition from Chinese garment imports raise a critical question: will stronger consumer demand translate into sustainable growth for domestic manufacturers?

According to a September 2026 survey by the Clothing Manufacturers Association of India (CMAI), 52% of respondents expect higher festive sales than last year, while 30% anticipate sales remaining at similar levels. Fewer than 20% expect a decline.

The outlook appears encouraging, but sales expectations alone do not establish whether manufacturers are becoming more profitable.

The Price of Festive Optimism

Rising production costs remain a significant concern. The CMAI survey found that approximately 54% of respondents are absorbing higher input costs by reducing their margins, while only around 35% have increased prices.

This creates a difficult equation for domestic manufacturers. Raising prices risks making products less attractive to price-conscious consumers, while absorbing additional costs leaves businesses with less room to invest, expand production or withstand market fluctuations.

The challenge becomes more pronounced when manufacturers compete against imported garments that may offer attractive prices and a wide variety of designs.

Imports Add to the Pressure

The concern is not merely theoretical. According to the South India Hosiery Manufacturers Association, imports of cotton ready-made garments from China rose to ₹8,508.64 crore during April–August 2025, from ₹8,263 crore in the corresponding period a year earlier, as reported by Textile Value Chain.

Broader trade data also highlights China's position in the supply chain. The Confederation of Indian Textile Industry reports that China accounted for 43.2% of India's textile and apparel imports in 2023. However, this figure covers a wider range of products, including textile materials and fabrics, not just finished garments. 

For Indian producers, particularly manufacturers in established clusters such as Tiruppur, the concern is whether imported apparel will capture demand that domestic factories could otherwise serve. Yet imports also give retailers access to different products and price points, making the issue more complex than a straightforward domestic-versus-foreign contest.

Beyond Festive Sales

India's manufacturers need more than a seasonal demand boost. Better production efficiency, competitive pricing, design differentiation and stronger supply chains will be essential to sustaining growth. Policymakers and industry bodies must also assess import trends using product-specific data before drawing conclusions about their impact on domestic production.

Ultimately, the CMAI survey offers a positive demand signal, not proof of an industry-wide recovery. If manufacturers must sacrifice margins to compete on price while facing imported alternatives, higher festive sales may not deliver the financial gains they need. The more important measure of success will be whether domestic businesses can turn seasonal demand into stronger profitability and long-term competitiveness.

Ramee Group of Hotels has announced a new 70-key resort in Dapoli, Maharashtra, expanding its leisure portfolio with a coastal property featuring sea-view accommodation, wellness amenities, dining facilities and dedicated spaces for destination weddings and corporate gatherings.

The upcoming property will comprise premium rooms and serviced apartments, with every guestroom offering panoramic views of the Arabian Sea. Located in the Konkan coastal town of Dapoli, the resort is positioned to attract leisure travellers from Mumbai, Pune, Nashik and surrounding urban centres seeking weekend escapes.

Commenting on the announcement, Saurabh Gahoi, Senior Vice President – India, Ramee Group of Hotels, said the group's expansion strategy focuses on delivering immersive hospitality experiences rooted in local character.

“Dapoli is rapidly emerging as India's next prominent weekend getaway, strategically serving major urban clusters including Mumbai, Pune, Nashik, and surrounding regions. The addition of the Dapoli property marks an exciting milestone in our resort portfolio. By offering sprawling sea views from every room and comfortable, thoughtfully designed stays, we are creating a unique sanctuary for guests,” he said.

The project is being developed in partnership with Agatsya Hospitality, a subsidiary of Phatak Developers. The collaboration aims to strengthen the region's hospitality offering while supporting the development of Dapoli as a coastal leisure destination.

Akshay Phatak, Owner of Agatsya Hospitality, said, “We are delighted to partner with Ramee Group of Hotels, one of the most respected hospitality brands in the lifestyle & leisure space. Phatak Developers is committed to elevating Konkan's tourism, and this collaboration marks an exciting step toward bringing world-class hospitality to Dapoli. We have complete trust in Ramee Group's operational expertise and we look forward to setting a new benchmark for coastal hospitality together.”

Dining, Wellness and Recreation

The resort's culinary offering will centre on a flagship all-day dining restaurant serving a combination of international favourites and regional coastal cuisine, bringing local flavours into the guest experience.

Facilities will include a fully equipped gymnasium, spa, swimming pool and dedicated indoor and outdoor children's play areas. These amenities are intended to cater to families and leisure travellers seeking a combination of relaxation and recreation.

A key feature will be the property's indoor and outdoor banqueting spaces, designed to accommodate corporate retreats, social gatherings and large-scale celebrations. The facilities are expected to support demand for destination weddings and event-led travel in the Konkan region.

With its combination of sea-view accommodation, wellness facilities and event spaces, the Dapoli resort will add to Ramee Group's leisure portfolio while contributing to the region's evolving hospitality landscape.

About Ramee Group of Hotels

Founded in 1985 by Raj Shetty, Ramee Group of Hotels, Resorts & Apartments is an international hospitality group with a presence across India and the Middle East. Its portfolio caters to corporate and leisure travellers through accommodation, dining concepts and lifestyle-oriented hospitality offerings.