‘Refunds Done, Compensation to Stranded Passengers Soon’: IndiGo To Delhi HC; Court Seeks Affidavit

New Delhi: IndiGo Airlines on Thursday informed the Delhi High Court that refunds for tickets cancelled during the recent wave of large-scale flight disruptions have been processed, and compensation to stranded passengers will be paid at the earliest.  

The Court, however, directed the airline to place on record a detailed affidavit explaining the manner and timeline of compensation within two weeks.

A Division Bench comprising Chief Justice DK Upadhyaya and Justice Tejas Karia was hearing a public interest litigation seeking an independent judicial probe into what has been described as the IndiGo crisis, which left lakhs of passengers stranded at airports across the country.

Recording submissions made by the airline, the Bench said, “Refund of cancelled tickets has been made. However, the process of compensation for cancellations and stranded passengers is being worked out. Let an affidavit be filed within two weeks.” 

During the hearing, Additional Solicitor General Chetan Sharma, appearing for the Union government, informed the Court that decisive action had been taken based on the findings of an inquiry committee. He said a Senior Vice President of IndiGo has been directed to be removed from service, a penalty of Rs 22 crore has been imposed on the airline, and warnings have been issued to several senior officials for lapses identified during the probe.

The Court also took on record the inquiry committee’s report, submitted in a sealed cover, along with the action taken report filed by the Directorate General of Civil Aviation (DGCA). Earlier, the Bench had observed that while it appreciated the steps taken by the Centre, it was deeply concerned about the scale of disruption. “Lakhs of passengers being stranded at airports also impacts the country’s economy,” the Court had remarked.

Counsel appearing for IndiGo submitted that the airline has launched a dedicated website to facilitate compensation claims from affected passengers. He also told the Court that refunds had already been issued for cancelled flights. 

The petitioner’s counsel, however, pointed out that the airline had issued travel vouchers to stranded passengers with restrictions on their usage. On being questioned by the Court, IndiGo’s counsel said the vouchers were worth Rs 10,000 and carried a validity period of 12 months. Responding to this, Chief Justice Upadhyaya remarked that a 12-month validity appeared reasonable, but sought clarity on what would happen if a passenger was unable to use the voucher within that period. The airline was asked to seek instructions and respond on this aspect in its affidavit.

The Court has listed the matter for further hearing on February 25.

Earlier, the High Court had directed IndiGo and the Union government to ensure that compensation to stranded passengers is initiated without delay and that all norms prescribed by the DGCA are strictly followed. The Bench had underlined that passenger welfare remained its foremost concern and had also flagged issues such as sudden spikes in airfares, pilot fatigue, staffing shortages and regulatory oversight during the crisis.

The Court had noted that the DGCA issued a show-cause notice to IndiGo and reiterated that compensation obligations under DGCA circulars must be strictly adhered to. It also clarified that the Centre has the authority to review regulatory decisions and take corrective action where required.

In a related development, the High Court declined to entertain a separate PIL seeking four-times compensation for cancelled tickets and a judicial inquiry against the DGCA, observing that remedial mechanisms were already in motion.

IndiGo, for its part, has maintained that the disruption was caused by a combination of unforeseen factors. The Court observed that these claims would be examined as part of the ongoing regulatory process, while stressing that immediate redressal for affected passengers cannot be delayed. 

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