The Bengaluru Urban II Additional District Consumer Commission has pulled up MakeMyTrip (India) Pvt Ltd for diverting a customer’s flight refund to its dormant wallet instead of crediting it back to the customer’s bank account. The online travel firm has been directed to refund the entire amount of ₹76,935 along with 8% annual interest and pay ₹20,000 as compensation and litigation costs.

The case was filed by Chandra Mohan Umapathy (48), a resident of Ranganathapura, Magadi Road, after a year-long struggle to recover money owed to him following a cancelled SpiceJet flight. The bench comprising Commission President Vijaykumar M Pawale and Member V Anuradha held that MakeMyTrip’s actions amounted to deficiency in service and unfair trade practice, causing undue hardship to the complainant.

Family’s pilgrimage disrupted by flight cancellation

The complaint stemmed from an incident on October 20, 2023, when Umapathy, along with his wife Chaitanya YP (45), daughter Vaishnavi (21), son Lakshith (15), and mother Saraswathi G (68), was set to travel from Bengaluru to Dehradun for a pilgrimage to Badrinath and Kedarnath. Their SpiceJet flight, booked through MakeMyTrip, was cancelled around midnight due to technical reasons, forcing them to postpone their plans.

The airline subsequently refunded ₹80,435 to MakeMyTrip. However, Umapathy alleged that only ₹3,500 was credited to his HDFC Bank account, while the remaining ₹76,935 was locked in a dormant MakeMyTrip wallet.

Despite multiple emails, phone calls, and follow-ups, there was no resolution. “We had saved for years to fulfil my mother’s wish of visiting Badrinath. The flight was cancelled, and while the airline did its part, MakeMyTrip refused to return our money to the bank. It was unfair that the refund stayed trapped in their system,” Umapathy said.

MakeMyTrip’s defence and commission’s findings

In its defence, MakeMyTrip stated that the refund was processed as per its internal policy—₹3,500 was transferred to the bank account and ₹76,935 was credited to the customer’s MakeMyTrip wallet on October 22, 2023. The company argued that since the wallet remained inactive for over a year, it became automatically dormant, preventing access.

The company further claimed there was no deficiency in service, as the cancellation occurred due to technical issues beyond control. SpiceJet Ltd did not appear before the forum and was declared ex parte.

However, after reviewing evidence, the consumer panel found MakeMyTrip’s explanation inconsistent with its own refund policy, which clearly stipulates that refunds must be made to the same account from which payment originated.

The commission observed that the customer had paid using his HDFC current account, and MakeMyTrip’s unilateral decision to transfer the refund to a wallet without consent violated its own terms.

“The opposite party had no justification to divert the refund into a wallet without the complainant’s request. Such conduct amounts to deficiency in service and unfair trade practice, causing undue hardship and mental agony to the consumer,” the bench ruled.

Commission’s order

On October 15, 2024, the bench directed MakeMyTrip to:

  • Refund ₹76,935 to the complainant with 8% annual interest from October 20, 2023, until realisation.
  • Pay ₹20,000 towards compensation for mental agony and litigation expenses.

The ruling reinforces that online service providers must adhere to transparent refund policies and not impose unilateral conditions that disadvantage consumers.

Broader implications

The verdict is seen as a significant win for digital consumers facing similar refund disputes with travel aggregators. It highlights the growing emphasis on accountability in e-commerce transactions and the responsibility of online platforms to comply with consumer protection laws.

Consumer rights experts said the order serves as a reminder for companies to ensure fair refund practices, particularly when payments are made through direct bank channels.