Government Launches Investigation into High Cancellation Fees by Online Ticket Bookings
Govt orders probe over exorbitant cancellation charges by online booking portals, warns of action
Hindustan Times
Image: Hindustan Times
The Indian government has initiated a probe into the cancellation fees charged by online air ticket booking platforms, following complaints of excessive charges. Union Minister Pralhad Joshi emphasized the need for transparency and consumer protection, threatening action under the Consumer Protection Act if unfair practices are identified.
- 01Union Minister Pralhad Joshi ordered the investigation after complaints about high cancellation fees.
- 02The investigation will assess whether charges exceed those disclosed at booking or those imposed by airlines.
- 03The Bharatiya Janata Yuva Morcha's Tajinder Bagga highlighted a case where Agoda charged ₹4,764 for cancellation, while the airline charged only ₹299.
- 04The Delhi government reduced the VAT on Aviation Turbine Fuel from 25% to 7% to support the aviation sector amid rising fuel costs.
- 05The VAT reduction is expected to result in a revenue loss of nearly ₹985 crore for the Delhi government.
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Union Minister of Consumer Affairs Pralhad Joshi has ordered an investigation into the cancellation charges imposed by online air ticket booking platforms, citing concerns over transparency and consumer trust. He directed the Department of Consumer Affairs and the Central Consumer Protection Authority (CCPA) to examine whether these platforms are charging excessive fees beyond what airlines disclose at the time of booking. If unfair practices are identified, the CCPA may take action under the Consumer Protection Act, 2019, including class action measures to safeguard consumer interests. This announcement follows a complaint from Tajinder Bagga, a national secretary of the Bharatiya Janata Yuva Morcha (BJYM), who faced a cancellation fee of ₹4,764 on Agoda, while the airline's own website quoted a fee of just ₹299. Additionally, the Delhi government has reduced the Value Added Tax (VAT) on Aviation Turbine Fuel from 25% to 7% for six months, a move aimed at alleviating financial pressure on the aviation sector amid rising fuel prices due to geopolitical tensions in the Middle East. This VAT reduction is projected to cause a revenue loss of approximately ₹985 crore for the Delhi government.
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This investigation could lead to more transparent pricing practices in the online ticket booking industry, benefiting consumers who often face hidden charges.
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