IndiGo Faces ₹22.2 Crore Penalty After Probe Finds Systemic Lapses

DGCA Probe Exposes IndiGo Lapses, Top-Level Accountability Fixed Over Flight Disruption

The420 Correspondent
5 Min Read

New Delhi: The central government and the aviation regulator have taken a hard line over the large-scale flight cancellations and passenger distress witnessed across the country in December 2025. The government informed the Delhi High Court that, following an investigation by the aviation regulator, the country’s largest airline, IndiGo, has been directed to remove one of its senior vice-presidents from service. The action stems from serious operational lapses and regulatory violations identified during the probe.

The submission was made during the hearing of a public interest litigation that raised concerns over the December flight cancellation chaos, passenger compensation, and the lack of adequate ground support. The government told the court that the matter was not merely an operational failure but one that required fixing accountability at the management level.

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The development comes at a time when IndiGo has reported a sharp 75% drop in quarterly profit. The airline said it suffered a financial hit of about $63 million due to mass flight cancellations in December, making the episode one of the most severe aviation disruptions in recent years.

The Directorate General of Civil Aviation (DGCA) told the court that a four-member inquiry committee had concluded that the crisis was rooted in excessive “over-optimisation” of operations, inadequate regulatory preparedness, deficiencies in system software support, and weaknesses in the management structure. In view of these serious shortcomings, the regulator imposed a penalty of ₹22.2 crore on the airline.

In addition, the DGCA has directed IndiGo to furnish a bank guarantee of ₹50 crore. The amount will be refunded only after the airline implements the required corrective measures and satisfies the regulator regarding compliance. The DGCA also clarified that the implementation of remedial steps would be closely monitored.

What the DGCA probe found

The DGCA investigation found that the airline violated rules on at least six counts. According to the inquiry report, between December 3 and December 5, 2025, as many as 2,507 flights were cancelled and 1,852 flights were delayed. The disruption left over three lakh passengers stranded at airports across the country, many of whom waited for hours with limited information or assistance.

The inquiry committee noted that the airline’s management failed to effectively implement the revised Flight Duty Time Limitation (FDTL) norms. The report highlighted an overriding focus on maximising utilisation of crew, aircraft, and network resources, which significantly reduced roster buffer margins. As a result, pilots and other operational staff faced extended duty hours and minimal recovery time, increasing operational risk.

The probe also pointed to serious deficiencies in system planning and delays in implementing necessary technical changes. Based on these findings, the DGCA not only ordered the removal of the senior vice-president but also issued formal warnings to several senior executives. The airline has been instructed to conduct an internal inquiry to identify other officials responsible for the lapses and submit a compliance report to the regulator.

Next hearing in High Court

The case is linked to a public interest petition pending before the Delhi High Court. The court has scheduled the next hearing for February 25. The petition seeks a judicial inquiry into the incident, a structured compensation mechanism for affected passengers, and clear guidelines to prevent such large-scale disruptions in the future.

The government reiterated before the court that aviation safety and passenger interests are paramount and that regulatory violations at any level will not be tolerated. Experts believe the case could set an important precedent for operational discipline, regulatory oversight, and top-level management accountability in India’s rapidly expanding aviation sector.

About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.

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