Question 1

What is the "Compulsory Service Charge Overcharge" scam in Mumbai?

Accepted Answer

Some tourist-facing restaurants in Mumbai add a compulsory service charge of 5–10% without clearly disclosing it, and a few establishments add it on top of GST in a way that inflates the final bill significantly above the displayed menu price. India's Consumer Affairs Ministry ruled in 2022 that restaurants cannot levy mandatory service charges, yet enforcement is patchy and tourist areas remain higher risk. A Mumbai consumer court fined a restaurant in 2024 for exactly this practice. Review the itemised bill before paying and question any line items not on the menu. You are legally entitled to refuse a mandatory service charge under India's Consumer Protection Act — ask for the charge to be removed if it was not disclosed upfront. Photograph the menu prices when ordering if you are uncertain.

Question 2

What is the "Currency Conversion Restaurant Scam" scam in Mumbai?

Accepted Answer

At some tourist-targeted restaurants in South Mumbai, staff present the bill in Indian Rupees but then process the card payment using dynamic currency conversion (DCC) at a highly unfavourable exchange rate, or manually enter a higher foreign currency amount. Tourists have reported being charged significantly more in their home currency than the rupee amount on the bill. When paying by card, always select "pay in INR" (Indian Rupees) and decline any offer to pay in your home currency — DCC rates from merchants are almost always worse than your bank's rate. Check your card statement in real time if your bank app allows it, and dispute any discrepancy before leaving the restaurant.

Restaurant Scams in Mumbai

Compulsory Service Charge Overcharge

Currency Conversion Restaurant Scam

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