CCPA Directs Yatra to Refund ₹2.5 Crore to Consumers Affected by COVID-19 Lockdown

GG News Bureau
New Delhi, 9th July. The Central Consumer Protection Authority (CCPA) has directed Yatra, an online travel platform, to refund the booking amounts to consumers affected by the COVID-19 lockdown. This action follows several complaints lodged through the National Consumer Helpline (1915-toll free number) regarding non-refund of cancelled air tickets, with consumers alleging that travel agencies had not received refunds from airlines.

In the landmark decision of Pravasi Legal Cell vs Union of India (W.P.(C)D.No.10966 of 2020) dated 01.10.2020, the Apex Court directed that tickets booked during the lockdown period through travel agents for travel within the lockdown period should be fully refunded by airlines immediately, and these refunds should be promptly passed on to the passengers by the agents.

In response, the CCPA initiated suo-moto action against Yatra regarding the non-refund of airline tickets cancelled due to the COVID-19 lockdown. A show cause notice was sent to Yatra on 09.03.2021 concerning the pending refunds. Subsequently, the CCPA conducted several hearings to monitor the progress of refunds made to consumers.

From July 8, 2021, to June 25, 2024, the CCPA held multiple hearings, resulting in significant progress. Initially, there were 36,276 pending bookings amounting to ₹26,25,82,484. As of June 21, 2024, this number has been reduced to 4,837 bookings, amounting to ₹2,52,87,098. Yatra has refunded approximately 87% of the amount to consumers and is committed to refunding the remaining 13%.

In 2021, there were 5,771 bookings pending for refunds amounting to ₹9,60,14,463. By 2024, Yatra reduced this to 98 bookings with an outstanding amount of ₹31,79,069. The CCPA directed the remaining airlines associated with Yatra to expedite refunds amounting to ₹31,79,069 to consumers.

Other travel platforms like MakeMyTrip, EaseMyTrip, ClearTrip, Ixigo, and Thomas Cook have refunded the entire amounts to consumers whose tickets were affected by the COVID-19 lockdown.

To further facilitate timely refunds, the CCPA issued an order on 27.06.2024 requiring Yatra to set up dedicated arrangements at the National Consumer Helpline (NCH). Yatra must allocate five exclusive seats at NCH to inform the remaining 4,837 passengers that their pending refunds will be processed. The costs for these personnel will be covered by Yatra, with payments made directly to the agency managed by NCH.