CCPA directs 'Yatra' to refund booking amounts affected by Covid-19 lockdown

The Central Consumer Protection Authority (CCPA) has directed Yatra, the online travel platform, to refund booking amounts to consumers affected by to Covid-19 lockdown.

"Central Consumer Protection Authority (CCPA) through National Consumer Helpline (1915-toll free number) that many grievances were lodged relating to non-refund of cancelled air tickets on account of COVID-19 lockdown wherein the consumers had alleged that the travel agencies informed them that refunds have not been received from the airlines etc," Ministry of Consumer Affairs, Food and Public Distribution stated.

The Apex Court 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 the travel company regarding pendency of refunds of bookings that got affected and in pursuant to that CCPA conducted several hearings of the Company and closely monitored the progress of refunds made to the consumers.

As a result of these efforts, Yatra has made significant progress in reducing the total number of pending refund bookings. In 2021, there were 36,276 pending bookings amounting to Rs 26,25,82,484. As of June 21, 2024, this number has been significantly reduced to 4,837 bookings, amounting to Rs 2,52,87,098. Yatra has refunded approximately 87% amount to consumers and further endeavor to refund approximately 13% amount to consumers in order to ensure that all pending refunds are processed promptly and efficiently by airlines.

In 2021, there were a total 5,771 bookings pertaining to airlines pending for refunds amounting to Rs 9,60,14,463. By 2024, Yatra has reduced the pendency of airlines to 98 bookings with an outstanding amount of Rs 31,79,069. CCPA vide order dated 27.06.2024 directed 22 remaining airlines of Yatra to expeditiously refund Rs 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 got affected due to the Covid-19 lockdown.

To further facilitate 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.