Consumer Commission Slaps Vistara with Rs 1.9 Lakh Penalty for Refund Delay
In a significant ruling, the District Consumer Disputes Redressal Commission in Panaji has directed Tata SIA Airlines Ltd, operating as Vistara, to compensate a woman and her son for failing to process a flight refund. The commission ordered the airline to repay the ticket fare of Rs 91,745 along with 18% annual interest from the date of the complaint. Additionally, Vistara must pay Rs 1 lakh to the complainants for the mental stress, hardship, and litigation costs incurred due to the prolonged dispute.
Details of the Case
The complainants, Maureen De Silva and Rhys Camara, residents of Miramar in Goa, purchased two return air tickets from Goa to London on Vistara on December 4, 2020. They paid a total of Rs 91,745 for their journey. However, on December 22, 2020, the airline informed them via a phone call that their flights were cancelled due to the suspension of air services amid the Covid-19 pandemic.
Vistara assured the passengers that it would remain in touch regarding the refund process or offer them an opportunity to reschedule their flights at a later date, as per their convenience. The refund was expected to be initiated directly by the airline without any further action from the passengers.
Prolonged Struggle for Refund
Despite the assurances, the complainants did not receive any communication from the airline. This forced them to repeatedly contact Vistara's customer service department to seek a refund or a change in booking dates. Each time, customer service representatives assured them of a refund but failed to provide a specific timeline for the process.
The situation escalated as the complainants made several calls, each lasting over an hour, and sometimes their calls were kept on hold for extended periods. Frustrated by the lack of progress, they decided to escalate the matter via email in 2022. However, the airline did not respond to their emails, prompting them to issue a legal notice.
Airline's Defense and Commission's Ruling
In its defense, Vistara argued that the refund was not initiated because the period for claiming the refund had exceeded the limitation period. However, the commission, presided over by President Bela Naik and member Auroliano de Oliveira, found the airline's approach to be very casual and lacking merit.
The commission concluded that Vistara had no valid grounds to challenge the complainants' stand. It held the airline liable for unfair trade practices and deficiency in service, emphasizing that the passengers had been put through unnecessary stress and inconvenience due to the airline's negligence.
Implications of the Ruling
This ruling underscores the importance of timely and transparent customer service, especially in the aviation sector, where passengers often face uncertainties due to unforeseen circumstances like the pandemic. It serves as a reminder to airlines to adhere to consumer protection laws and ensure that refund processes are handled efficiently.
The commission's decision not only provides relief to the affected passengers but also sets a precedent for similar cases, encouraging consumers to seek legal recourse when faced with unfair practices by service providers.
