CPA orders Yatra to refund booking amounts affected by Covid lockdown

Online travel platform Yatra has been directed to refund booking amounts to consumers affected by the COVID lockdown. This development has brought relief to many consumers who had filed complaints via the National Consumer Helpline number 1915 regarding non-refunded booking amounts due to pandemic-related cancellations. These consumers had been informed by travel agencies that refunds had not been received from the airlines.

The Central Consumer Protection Authority (CCPA), a regulatory body under the consumer protection law, initiated suo-moto action against Yatra for failing to refund airline tickets canceled due to the COVID-19 lockdown, following a Supreme Court decision in October 2020.

From July 8, 2021, to June 25, 2024, the CCPA held several hearings to address these issues, resulting in Yatra Online making significant progress in reducing the number of pending refund bookings. “Yatra has refunded approx 87 per cent (of the) amount to consumers and further endeavours to refund approx 13 per cent (of the) amount to consumers in order to ensure that all pending refunds are processed promptly and efficiently by airlines,” CCPA said.

As of June 21, 2024, the number of pending bookings stood at 4,837, amounting to ₹2,52,87,098, significantly down from 36,276 bookings amounting to ₹26,25,82,484 in 2021.

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

CPA further went on saying that 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 Covid-19 lockdown.

On June 27, the CCPA instructed Yatra to establish dedicated arrangements at the National Consumer Helpline (NCH) to enhance the timely processing of consumer refunds.

In its July 9 order, the CCPA emphasized the importance of timely refunds, directing Yatra to comply with this mandate to ensure the complete resolution of all pending bookings.