Travel platform Yatra asked by Authority to refund bookings to consumers affected by Covid lockdown

It came to the notice of the CCPA through the National Consumer Helpline (1915-toll free number) that many grievances were lodged relating to the non-refund of canceled air tickets on account of the COVID-19 lockdown. Consumers alleged that the travel agencies informed them that refunds had not been received from the airlines.

In light of these grievances, the CCPA initiated suo-moto action against Yatra regarding the non-refund of airline tickets canceled. According to a Ministry of Consumer Affairs statement on Tuesday, a show cause notice was sent to this travel company in March 2021 regarding the pendency of refunds of bookings. The CCPA conducted several hearings of the Company and closely monitored the progress of refunds made to the consumers. From July 8, 2021, to June 25, 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 over Rs 26 crore. As of June 21, 2024, this number has been significantly reduced to 4,837 bookings, amounting to over Rs 2.5 crore. "Yatra has refunded approximately 87 percent of the amount to consumers and further endeavors to refund approximately 13 percent of the amount to consumers in order to ensure that all pending refunds are processed promptly and efficiently by airlines," the ministry release said.

The CCPA, via an order dated June 27, 2024, directed twenty-two remaining airlines associated with Yatra to expeditiously refund Rs 31,79,069 to consumers. During the proceedings held before the 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 timely processing of refunds to consumers," CCPA issued an order on June 27, 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.