Good news for flyers! Govt directs online travel aggregators to process pending refunds by next week

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The government on wednesday (November 8) issued directives to online travel aggregators to expedite the processing of pending refunds for air ticket bookings made during the lockdown period imposed in response to the COVID-19 pandemic.

In wake of the COVID-19 pandemic-induced lockdown, which commenced on March 25, 2020, several scheduled commercial flight services were suspended for a certain duration, a multitude of passengers had their travel plans disrupted.

Consumer Affairs Ministry reviews issue

The Consumer Affairs Ministry recently conducted a meeting with online travel aggregators to address concerns that adversely affected consumers in the travel industry.

At the meeting, chaired by Consumer Affairs Secretary Rohit Kumar Singh, the issue of outstanding refunds for tickets purchased during the COVID-19 lockdown was a focal point.

Travel aggregators to face legal action for non-compliance

An official statement released on the matter declared that travel aggregators have been directed to process these outstanding refunds by the end of the third week of November. Failure to comply could lead to legal action, including the filing of a contempt petition before the Supreme Court against non-compliant platforms.

“The travel platforms were informed that they should process the pending refunds by the third week of November, pursuant to which CCPA may initiate appropriate legal proceedings before the Supreme Court including filing of a contempt petition against the defaulting platforms,” the statement said.

“Further, the establishment of an Ombudsman for time-bound resolution of consumer grievances was also deliberated. The Ministry of Civil Aviation and the Department of Consumer Affairs can jointly work on the modalities involved in establishing the same,” the release said.

CCPA pursues pending refunds from travel portals

The Central Consumer Protection Authority (CCPA) proactively took cognizance of the numerous complaints and issued notices to six online portals and five travel agencies, instructing them to promptly refund as per the Supreme Court’s order. Two of these companies, Ixigo and Thomas Cook, have already completed their refunds.

However, MakeMyTrip, EaseMyTrip, Clear Trip, Yatra, and Mango Holidays still have pending refund amounts to process. HappyEasyGo is yet to respond despite reminders. Kesari Tours, Mango Holidays, and Veena World have filed petitions against the CCPA’s refund orders in court, while Neem Holidays is currently under investigation by the CCPA.

The meeting included representatives from major travel platforms, such as MakeMyTrip, Yatra, and ClearTrip, as well as consumer activists, and focused on addressing the challenges and issues facing travelers who had faced disruptions during the lockdown.

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