Hospitality industry: Mumbai hotels file lawsuit against unlicensed restaurants and aggregators

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A leading restaurant lobby group in the country has approached the Bombay High Court, seeking its intervention to shut down all unlicensed restaurants in Mumbai until they obtain the necessary licenses.

The Indian Hotel & Restaurant Association (AHAR) also wants the court to order the Municipal Corporation of Greater Mumbai (MCGM), Commissioner of Police and other authorities to take appropriate action under the law against “the ‘illegal operation of restaurants’.

The association also alleged that food delivery aggregators such as Zomato and Swiggy had registered several illegal restaurants as members, and urged the court to open “a thorough investigation” and order the registration of the FIR against the responsible for eight food delivery service providers.

“Taking advantage of the lockdown imposed by the Indian government, several unauthorized and illegal restaurants that were operating their businesses have increased their business activities, and several new unauthorized and illegal restaurants have sprung up all over Mumbai and other cities across India. India,” he said in his plea.

ET saw a copy of the petition.

He alleged that these illegal restaurants were operating without compulsory permits and licenses, including those under the Shops and Establishments Act of Maharashtra and Food Safety and Standards Authority of India (FSSAI) registration.

AHAR is the largest association of hotel and restaurant owners in the country and has over 8,000 affiliated members in Maharashtra.

In addition to various state and central government departments and regulators, AHAR named eight online food delivery aggregators, including Zomato, Bundl Technologies which operates Swiggy, and Dunzo Digital, among others, as respondents.

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