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Order Under Section 144 Cr. P.C.

Chandigarh, 1st April, 2016: It has come to the notice of Sh. Ajit Balaji Joshi, IAS, District Magistrate, Chandigarh that some of the hotels/restaurants/eateries, etc. within the jurisdiction of Chandigarh are levying service charge over and above the actual bills. The said service charge is without any authority of law and is not provided under any statute. The proceeds of the service charge are retained by the hotels/restaurants/eateries and not a charge collected by the Government. 
As such, there is a large scale of resentment against the levy of this charge among the consumers. This levy, which is not supported by any law, tends to bring about manipulation of price in such a manner as to impose on the consumers, unjustified costs. The levy of service charge by hotels/restaurants/eateries is clearly a restrictive/unfair trade practice under the Consumer Protection Act, 1986.
Sh. Ajit Balaji Joshi, IAS, District Magistrate, Chandigarh, is of the opinion that the service charge, being without any sanction of law, is a restrictive/unfair trade practice and the practice must be discontinued in the public interest.
Sh. Ajit Balaji Joshi, IAS, District Magistrate, Chandigarh, exercising the power conferred u/s 144 of Cr.P.C., do, hereby, prohibit, the levy of service charge by hotels/restaurants/eateries, etc. within the jurisdiction of Chandigarh. This order shall come into force with immediate effect and shall be effective up to 60 days thereof. This order is being issued ex-parte and is addressed to the public in general. 

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