New Delhi: It came to the notice of the Central Consumer Protection Authority (CCPA) through the National Consumer Helpline (1915-toll free number) that many grievances were lodged relating to non-refund of cancelled air tickets due to the COVID-19 lockdown, wherein the consumers had alleged that the travel agencies informed them that refunds had not been received from the airlines.
The Apex Court in its decision in Pravasi Legal Cell vs Union of India (W.P.(C)D.No.10966 of 2020) dated 01.10.2020 had directed that:
"If the tickets have been booked during the lockdown period through a travel agent for travel within the lockdown period, in all such cases full refund shall be given by the airlines immediately. On such refund, the amount shall be passed on immediately by the agent to the passengers."
In light of the above, the CCPA initiated suo-moto action against Yatra regarding non-refund of airline tickets cancelled due to the COVID-19 lockdown.
Show Cause Notice dated 09.03.2021 was sent to this travel company regarding the pendency of refunds of bookings which got affected by COVID-19. Pursuant to that, CCPA conducted several hearings of the company and closely monitored the progress of refunds made to the consumers.
From 8 July 2021 to 25 June 2024, the CCPA conducted several hearings to address these issues. As a result of these efforts, Yatra Online Limited has made significant progress in reducing the total number of pending refund bookings. In 2021, there were 36,276 pending bookings amounting to ₹26,25,82,484. As of 21 June 2024, this number has been significantly reduced to 4,837 bookings, amounting to ₹2,52,87,098. Yatra has refunded approx. 87% of the amount to consumers and endeavours to refund the remaining approx. 13% to ensure that all pending refunds are processed promptly and efficiently by airlines.
In 2021, there were 5,771 bookings pertaining to airlines pending for refunds amounting to ₹9,60,14,463. By 2024, Yatra has reduced the pendency to 98 bookings with an outstanding amount of ₹31,79,069. CCPA, vide order dated 27.06.2024, directed the remaining 22 airlines of Yatra to expeditiously refund ₹31,79,069 to consumers.
During the proceedings held before CCPA, several other travel platforms like MakeMyTrip, EaseMyTrip, ClearTrip, Ixigo and Thomas Cook have refunded the entire amount to consumers whose tickets were affected due to the COVID-19 lockdown.
To further facilitate the timely processing of refunds to consumers, CCPA issued an order on 27.06.2024 wherein it directed Yatra to set up dedicated arrangements at the National Consumer Helpline (NCH). Specifically, Yatra is required to allocate five exclusive seats at NCH for making calls to the remaining 4,837 passengers, informing them that their pending refunds due to COVID-19 lockdown-related flight cancellations will be processed. The costs incurred for engaging these five dedicated personnel will be fully covered by Yatra with payments made directly to the agency managed by NCH.
The CCPA's order reinforces the importance of timely refunds and directs Yatra to adhere to this directive to ensure the complete resolution of all pending bookings. /BI
