Yatra ordered to refund booking amount to COVID lockdown-affected consumers

Online travel platform Yatra has been asked to refund booking amounts to consumers affected by the COVID lockdown. The development brought a sigh of relief to several consumers who had lodged complaints related to the non-refund of booking amounts using the National Consumer Helpline number 1915 on account of cancellations due to the pandemic-triggered lockdown, alleging that they were informed by the 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 over the non-refund of airline tickets cancelled due to the COVID-19 lockdown, in light of a Supreme Court decision in October 2020.

From July 8, 2021, to June 25, 2024, the CCPA conducted several hearings to address these issues, following which Yatra Online made significant progress in reducing the total 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," said the CCPA. 

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

In 2021, there were a total of 5,771 airline bookings pending 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," the regulatory body said. 

The CCPA also highlighted that during the proceedings held before it, several other travel platforms like MakeMyTrip, EaseMyTrip, ClearTrip, Ixigo and Thomas Cook refunded the entire such amounts due to consumers.

On June 27, the CCPA directed Yatra to set up dedicated arrangements at the National Consumer Helpline (NCH) to further facilitate timely processing of refunds to consumers. 

The CCPA said its July 9 order "reinforces the importance of timely refunds" and Yatra is directed to adhere to it to ensure complete resolution for all pending bookings.