CCPA Directs Yatra to Refund Pending Booking Amounts Upto 2.5 Crore Due to COVID-19 Lockdown
News Mania Desk/Agnibeena Ghosh/9th July 2024
The Central Consumer Protection Authority (CCPA) has mandated that the online travel platform Yatra refund consumers for bookings affected by the COVID-19 lockdown. This directive follows numerous complaints registered via the National Consumer Helpline (NCH) regarding non-refund of canceled air tickets. Consumers reported that travel agencies were unable to process refunds as airlines had not issued them.
In the legal case Pravasi Legal Cell vs Union of India (W.P.(C)D.No.10966 of 2020), the Supreme Court ruled that full refunds should be provided for tickets booked through travel agents during the lockdown period for travel within that same timeframe. This ruling formed the basis for the CCPA’s action against Yatra.
In March 2021, the CCPA issued a show cause notice to Yatra regarding the backlog of refunds due to the pandemic-related cancellations. Since then, the CCPA has held multiple hearings with Yatra and closely monitored the progress of refund disbursements to consumers.
From July 2021 to June 2024, significant progress was made. Initially, 36,276 bookings worth ₹26,25,82,484 were pending. By June 2024, this number was reduced to 4,837 bookings, amounting to ₹2,52,87,098. Yatra has refunded approximately 87% of the amount and is working to ensure the remaining 13% is promptly refunded.
In 2021, there were 5,771 pending airline bookings worth ₹9,60,14,463. By 2024, this had decreased to 98 bookings with a total outstanding amount of ₹31,79,069. The CCPA has ordered the 22 remaining airlines associated with Yatra to expedite the refund process for these amounts.
Other travel platforms like MakeMyTrip, EaseMyTrip, ClearTrip, Ixigo, and Thomas Cook have fully refunded consumers affected by the lockdown. To facilitate the refund process, the CCPA has directed Yatra to establish dedicated arrangements at the NCH. This involves allocating five exclusive seats for making calls to the 4,837 passengers awaiting refunds. Yatra will bear the costs for these personnel, making payments directly to the agency managed by NCH.
The CCPA’s order underscores the necessity of timely refunds and directs Yatra to comply fully to ensure all pending bookings are resolved. This action aims to uphold consumer rights and ensure travel platforms adhere to their refund obligations in the wake of unprecedented disruptions like the COVID-19 pandemic.
