Government Directs Online Travel Portals to Refund Air Tickets Booked During Covid Lockdown

The Indian government has issued a directive to online travel aggregators to process pending refunds related to air ticket bookings made during the Covid-19 lockdown period by the third week of November. The nationwide lockdown, implemented from March 25, 2020, led to the suspension of scheduled commercial flight services for a certain period, affecting travelers who had booked tickets during this period.

In a meeting chaired by Consumer Affairs Secretary Rohit Kumar Singh, the Consumer Affairs Ministry discussed issues affecting consumer interests in the travel sector. During the meeting, the non-refund of amounts for tickets booked during the Covid-19 lockdown period was a major topic of discussion.

As per the official release, travel aggregators have been instructed to disburse pending refunds resulting from the Covid-19 lockdown until the end of the third week of November. If the refunds are not processed within the stipulated time, the Central Consumer Protection Authority (CCPA) may initiate legal proceedings before the Supreme Court, potentially filing a contempt petition against defaulting platforms.

Additionally, the establishment of an Ombudsman for time-bound resolution of consumer grievances was discussed. The Ministry of Civil Aviation and the Department of Consumer Affairs will collaborate on the modalities for establishing this mechanism. Another proposal under consideration is integrating the National Consumer Helpline with the Air Sewa Portal to enhance the effective resolution of consumer complaints.

Despite the Supreme Court’s October 1, 2020 judgment in the case of Pravasi Legal Cell vs. Union of India, numerous consumer complaints regarding the refund of air ticket bookings during the Covid-19 lockdown persisted. In response, the CCPA took suo-moto cognizance of these complaints and issued notices to six online portals and five travel agencies, instructing them to refund the amounts as per the Supreme Court’s order.

While Ixigo and Thomas Cook have successfully refunded the entire amount to consumers due to CCPA’s intervention, other platforms such as MakeMyTrip, EaseMyTrip, ClearTrip, Yatra, and Mango Holidays have partially refunded the amounts. HappyEasyGo has not responded to reminders, and Kesari Tours, Mango Holidays, and Veena World have filed petitions against the refund orders issued by the CCPA. Neem Holidays is presently under investigation by the CCPA.

During the meeting, CCPA Chairperson Nidhi Khare emphasized the prevalent use of “dark patterns” on online travel platforms that mislead consumers. The meeting was attended by representatives from major travel platforms, including MakeMyTrip, Yatra, and ClearTrip, along with consumer activists.