Flights — DGCA Compensation Rules (Domestic)
Under DGCA's Civil Aviation Requirements on "Refund of Airfare, Facilities for Air Passengers," and the applicable guidelines on denied boarding and cancellation:
- Denied boarding (overbooking): If the airline arranges an alternate flight within 1 hour of the original departure, no compensation is due. If arranged within 24 hours, compensation is 200% of the basic fare plus airline fuel charge, capped at ₹10,000. If arranged after 24 hours, or the passenger declines the alternate flight, compensation is 400% of the basic fare plus fuel charge, capped at ₹20,000, along with a full refund.
- Cancellation by the airline: The airline must offer an alternate flight or a full refund, plus compensation (as above, depending on notice given), and must provide meals/refreshments to passengers already at the airport awaiting an alternate flight.
- Exemptions: Cash compensation (not the refund/rebooking/meal obligations) is not payable where the cancellation/delay is due to circumstances outside the airline's control — weather, ATC restrictions, security alerts, or unannounced strikes.
- Voucher vs. cash: Airlines cannot compel a passenger to accept a travel voucher instead of cash compensation/refund; the passenger must agree to a voucher.
Hotel Bookings
A hotel refusing to honour a confirmed booking ("walked" to another property without consent), providing a room materially different from what was booked/paid for, or an online travel agent (OTA) failing to process a valid cancellation/refund per its own displayed policy, is a deficiency in service. Where booked through an OTA, the OTA (as an e-commerce entity) must also comply with the Consumer Protection (E-Commerce) Rules, 2020 — a Grievance Officer who acknowledges within 48 hours and resolves within 1 month, accurate disclosure of the hotel's cancellation policy before booking, and no manipulation of pricing/availability displays.
Applicable Law
The airline/hotel/OTA provides a "service" for consideration under Section 2(42), CPA 2019, and the traveller is a "consumer" under Section 2(7). A cancellation, denied boarding, or booking dishonoured without adequate cause is "deficiency" under Section 2(11); a misleading cancellation-policy display or hidden fee is "unfair trade practice" under Section 2(47). Both the OTA (for its own platform conduct) and the airline/hotel (for the underlying service) can be relevant opposite parties, depending on where the failure occurred.
Jurisdiction & Forum
| Forum | Pecuniary jurisdiction | Location |
|---|---|---|
| DCDRC Puducherry | Value of goods/services paid as consideration up to ₹50 Lakh | Lawspet, Puducherry |
| SCDRC Puducherry | ₹50 Lakh to ₹2 Crore; also first appeals from DCDRC orders | Lawspet, Puducherry |
| NCDRC | Above ₹2 Crore; also first appeals from SCDRC orders | New Delhi |
(Section 34(1)/47(1)(a)(i)/58(1)(a)(i) of the Act itself set these thresholds at ₹1 Crore / ₹10 Crore / above ₹10 Crore; each carries a proviso letting the Central Government prescribe a different value. Exercising that power, the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021 currently set the values shown in the table above.) A Puducherry traveller may generally file at DCDRC Puducherry under Section 34(2), regardless of where the airline, hotel, or OTA is based, or where the flight/stay took place.
Limitation Period
Under Section 69, CPA 2019, a complaint must ordinarily be filed within two years from the date the cause of action arose — the date of the flight cancellation/denied boarding, or the date the hotel/OTA refused a valid refund request.
Documents Typically Needed
- Booking confirmation, e-ticket/PNR, and payment receipt
- Boarding pass or airport check-in record, for a denied boarding claim
- Airline's written communication on cancellation/denial and reason given
- Hotel's cancellation policy as displayed at the time of booking (screenshot)
- Correspondence with the airline/hotel/OTA's customer care, with dates
- Alternate arrangement costs incurred (replacement flight/hotel), where compensation for consequential loss is sought
General Process Outline
- Step 1 — Airline/hotel/OTA grievance: Raise the complaint in writing with the airline's/hotel's/OTA's customer care and Grievance Officer (for the OTA), retaining all correspondence.
- Step 2 — DGCA AirSewa (for flights): A complaint may be filed on airsewa.gov.in for regulatory escalation regarding DGCA-mandated obligations.
- Step 3 — Legal notice: A written notice to the relevant party setting out the grievance and relief sought.
- Step 4 — File the complaint: Under Section 35, with supporting documents and affidavit, at DCDRC Puducherry, online via e-jagriti.gov.in or in person.
- Step 5 — Admission and hearing: Per Section 36 (admission, ordinarily within 21 days of filing) and Section 38 (notice to the opposite party within 21 days of admission; response within 30 days, extendable by 15 days), then hearing and evidence.
- Step 6 — Order: Under Section 39, the Commission may direct relief it considers appropriate on the facts proved, including the DGCA-mandated compensation where applicable; the Act does not fix or guarantee any specific outcome beyond what the applicable rule itself prescribes.