CCPA Directs Yatra to Expedite Refunds for COVID-19 Lockdown-Affected Airline Tickets

The Central Consumer Protection Authority (CCPA), prompted by numerous consumer grievances received via the National Consumer Helpline regarding unreceived refunds for cancelled air tickets during the COVID-19 lockdown, took proactive steps against Yatra Online Limited.

Following a directive from the Supreme Court in the case of Pravasi Legal Cell vs Union of India, which mandated full refunds for tickets booked through travel agents during the lockdown period, CCPA initiated suo-moto action against Yatra. This action was aimed at addressing pending refund issues concerning bookings affected by COVID-19 disruptions.

A Show Cause Notice dated March 9, 2021, was issued to Yatra regarding the backlog of refund payments. Subsequently, CCPA conducted multiple hearings with the company to monitor the progress of refunds owed to consumers.

As a result of these efforts spanning from July 8, 2021, to June 25, 2024, Yatra has significantly reduced the number of pending refund bookings. In 2021, there were 36,276 pending bookings amounting to ₹26,25,82,484, which have now been reduced to 4,837 bookings totaling ₹2,52,87,098 as of June 21, 2024. Yatra has already refunded approximately 87% of the owed amount and aims to complete the remaining 13% promptly.

Additionally, Yatra has addressed airline-related refunds, reducing the pending bookings from 5,771 in 2021 amounting to ₹9,60,14,463 to 98 bookings totaling ₹31,79,069 by 2024. CCPA, through an order dated June 27, 2024, has instructed the remaining 22 airlines associated with Yatra to expedite the refund of ₹31,79,069 to affected consumers.

During the proceedings, other travel platforms such as MakeMyTrip, EaseMyTrip, ClearTrip, Ixigo, and Thomas Cook have already refunded the entire amount to consumers affected by COVID-19-related flight cancellations.

To further streamline refund processes, CCPA has mandated Yatra to establish dedicated operations at the National Consumer Helpline (NCH). Yatra is required to allocate five exclusive seats at NCH to directly contact the remaining 4,837 passengers, informing them of the impending refunds. All expenses related to these personnel will be borne by Yatra, ensuring efficient communication and resolution of pending refund issues.

The recent directive from CCPA underscores the importance of timely refund processing, emphasizing Yatra's commitment to adhering to these guidelines to resolve all outstanding refund claims swiftly.