New Delhi: The central government has initiated a detailed investigation into online flight booking platforms amid rising complaints of unfair cancellation charges and delayed refunds.
The probe, led through the Central Consumer Protection Authority (CCPA) under the Ministry of Consumer Affairs, has intensified following repeated allegations of irregular practices affecting passengers nationwide.
According to initial findings, certain platforms are reportedly charging cancellation fees up to 15 times higher than airline-prescribed rates. In addition, serious discrepancies have been identified in refund processing, where passengers are allegedly not receiving the full amount even after airlines have already released the funds.
Officials familiar with the investigation said multiple platforms are suspected of withholding refund amounts or delaying transfers beyond the stipulated timeline. In some cases, it has been alleged that funds received from airlines are temporarily diverted for internal business use before partial refunds are issued to customers under pressure.
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Platform Diversions and Multi-Agency Aggregator Inquiries
The probe is not limited to any single company but covers a wide range of online travel aggregators and associated booking services. Complaints filed by consumers indicate that incorrect deductions and misleading refund breakdowns have led to financial losses and potential violations of the Consumer Protection Act, 2019.
Sources in the ministry said preliminary assessments suggest the possibility of “unfair trade practices” by certain platforms, particularly in how cancellation charges and service fees are calculated and communicated to customers.
Several users have also raised concerns on social media platforms regarding inconsistent refund amounts. In one reported case, Akasa Air allegedly processed a refund of ₹2,041 to a travel intermediary, but the booking platform reportedly credited only ₹888 to the customer. Similar complaints suggest that even after airlines issue full refunds, passengers are receiving significantly reduced amounts.
Digital Opaque Structures and Regulatory Interferences
Experts believe such practices highlight a lack of transparency in the digital travel ecosystem. They warn that opaque fee structures and delayed refund mechanisms can undermine consumer trust in online booking systems, especially as air travel demand continues to rise.
The Directorate General of Civil Aviation (DGCA) regulations clearly state that airlines must complete refund processing within prescribed timelines and return all applicable taxes and charges. However, ongoing complaints indicate that intermediaries may be interfering in the refund chain, thereby affecting timely and full repayment to customers.
DGCA Look-In Mandates and Fiscal Enforcement Actions
Under DGCA norms, passengers are allowed to cancel or modify tickets within 48 hours of booking without additional charges, provided certain conditions are met. Name corrections within 24 hours are also not subject to extra fees. Refunds for cancelled tickets are required to be processed within 7 to 14 working days depending on the payment method and booking channel.
The government’s investigation is also examining whether additional charges labeled as “cancellation fees” or “service charges” are being imposed beyond airline-approved limits. If confirmed, such practices may fall under unfair trade behavior under Indian consumer protection laws.
Officials have indicated that strict action may follow if violations are established. Penalties could include regulatory fines, restrictions on operations, and mandatory changes in refund and pricing policies for non-compliant platforms.
The government’s stated objective is to ensure transparency, protect passenger rights, and bring uniformity in refund and cancellation processes across the digital travel booking ecosystem.
The investigation is currently ongoing, and authorities have not ruled out further regulatory action or broader industry-wide reforms in the coming weeks.
