MakeMyTrip or Goibibo Awaiting Airline Refund Stuck? Legal Fix

You booked a flight ticket on MakeMyTrip, Goibibo, Cleartrip, or Yatra. Later, the airline cancelled the flight due to bad weather or operational issues. Or perhaps you cancelled the ticket yourself well in advance. You expected your money back within a few days. Instead, you found yourself trapped in the classic airline refund blame loop.

When you call IndiGo, Air India, or SpiceJet, the support agent tells you that the refund is already processed. They say the money was sent back to your travel agent. But when you open your MakeMyTrip or Goibibo app, the screen tells a different story. It shows a frustrating status message: "Awaiting refund from airline" or "Processing with partner airline". Weeks pass by, but no cash arrives in your bank account.

Both companies point fingers at each other. The airline tells you to chase the booking portal. The portal tells you to wait for the airline. This runaround is not an honest delay. Both firms use this trick to hold customer cash and earn interest on your money. Under DGCA rules and Supreme Court orders, you have a clear right to a fast refund. In this guide, we show you how to break this blame loop in 48 hours and recover 100 percent of your cancelled flight refund.

The Airline vs OTA Blame Loop Explained

To beat this game, you must understand how these two companies share roles. When you buy a ticket through an online travel agent (OTA), three parties are involved. You are the buyer. The online portal is the booking agent. The airline is the actual carrier. Each party has legal duties under Indian law.

When a flight gets cancelled, the money path splits into two separate steps:

• The Airline Step: The airline cancels the seat on its central booking system. Under air travel rules, the airline must return the fare to the booking source. Because you booked through an app, the ticket was bought from the agency corporate account. The airline credits the travel agent account on its books. It does not send cash directly to your personal bank account.
• The OTA Step: The booking portal collected your money when you bought the ticket. It holds your funds in its own bank accounts. When the airline clears the cancellation, the agency receives credit. But instead of sending the money back to your card or UPI, the portal sits on the cash. The app keeps showing that it is waiting for airline clearance.

Because you cannot see the internal accounts of the airline or the agency, both sides take advantage of you. The airline says its job is done. The agency says it has not received the cash yet. You stay stuck in the middle while your money stays locked in their bank accounts.

How the IATA Billing and Settlement Plan Works

Breaking this trap requires knowing how travel agents settle money with airlines. Online travel platforms do not pay airlines for each single flight ticket by UPI or net banking. Instead, all approved travel agents and airlines settle their bills through the International Air Transport Association (IATA). This system is called the Billing and Settlement Plan or IATA BSP.

The IATA BSP works like a central clearing house for air travel. When an agency sells tickets, the money gathers in the BSP system. Every two weeks, the system calculates the net balance between the airline and the travel agent. When a flight is cancelled, the airline does not write a cheque to the agent. Instead, the airline creates an official document called an IATA BSP Credit Memo.

This Credit Memo has a unique tracking number. As soon as the airline creates this memo, the refund amount gets credited to the travel agent account. In simple words, the travel portal has already received your refund. It pays less money to the airline in the next settlement cycle. The money is already in the hands of the travel portal.

When MakeMyTrip or Goibibo tells you they are waiting for airline funds, they are hiding the truth. The agency already holds the credit in its books. It simply delays paying you to keep the cash float. When you demand the exact IATA BSP Credit Memo number, you strip away their excuse immediately.

DGCA CAR Section 3 Series M Part II Refund Mandates

Air passenger rights in India are protected by the Directorate General of Civil Aviation (DGCA). The primary rule book is Civil Aviation Requirements (CAR), Section 3, Series M, Part II. This regulation is named "Refund of Airline Tickets to Passengers of Public Transport Undertakings." These rules carry legal power under the Aircraft Act of 1934.

The DGCA rules give passengers solid legal rights that neither airlines nor travel agents can ignore:

1. Main Duty Rests on the Airline (Clause 3.3.2): The rule clearly states that when tickets are bought through travel agents or web portals, the airline bears the ultimate duty to ensure the passenger gets the refund. The airline cannot wash its hands of the matter. The carrier must ensure that the agent completes the full refund to the passenger within 14 working days.
2. Full Refund of All Taxes (Clause 3.3): Even if you buy a cheap promotional ticket marked as non-refundable, all airport taxes and government fees must be paid back in full. This rule covers User Development Fees (UDF), Airport Development Fees (ADF), Passenger Service Fees (PSF), and GST. No airline or agent can keep a single rupee of these taxes.
3. Limit on Cancellation Charges (Clause 3.4): Cancellation charges can never be higher than the basic airfare plus fuel surcharge. If an airline or agent tries to deduct fees that exceed the base ticket price, that deduction breaks the law.
4. No Forced Travel Vouchers or Credit Shells: Airlines and booking apps cannot force you to accept a credit shell, wallet credit, or travel coupon. You have an absolute legal right to get cash back to your original bank account or card.

When an online agency holds your refund beyond 14 working days, it violates DGCA rules. If your money remains unpaid, you can issue an airline flight cancellation refund legal notice to demand instant payment under statutory timelines.

Supreme Court Ruling in Pravasi Legal Cell v Union of India

The legal duties of airlines and travel agents were settled by the Supreme Court of India in the landmark case of Pravasi Legal Cell & Ors. v. Union of India & Ors. (2020 INSC 575). In this ruling, the highest court in India laid down binding principles on flight refunds handled through travel portals.

The Supreme Court rejected the claim that airlines and agents can pass blame between themselves. The judges held that travel agents act as authorized sales partners of airlines. The court ordered that when tickets are booked through an agent or OTA, the airline must send the refund to that agent, and the agent must pass that refund to the passenger without any delay.

The Supreme Court established three vital legal principles:

• Duty to Pass Money Immediately: A travel portal holds customer refund money as a trustee. Once the airline issues the credit memo or sends the money, the portal has no legal right to hold the cash.
• Unfair App Terms are Void: Any clause in an app user agreement that says the portal can hold customer money indefinitely is unfair and void in law.
• Joint Duty to the Passenger: The Supreme Court made it clear that airlines cannot leave passengers stranded. Because the airline appoints the travel agent, the airline must step in and ensure the agent pays the consumer.

When you cite the Pravasi Legal Cell judgment in writing, travel portals know they cannot win in court. If a portal continues to delay your funds, you can submit a structured MakeMyTrip Goibibo refund complaint through proper legal notice channels.

Why the IT Act Intermediary Defense Fails for OTAs

When consumers challenge travel portals, the portals often claim they are only "technology intermediaries" under Section 79 of the Information Technology Act, 2000. They argue that they only run a website and are not liable for airline refunds.

Consumer courts and the National Consumer Disputes Redressal Commission (NCDRC) have repeatedly thrown out this argument. The courts have established clear reasons why travel portals cannot hide behind intermediary immunity:

• Portals Charge Fees and Earn Profits: Travel portals do not run free bulletin boards. They charge booking convenience fees, collect commissions, and run payment gateways. Because they take money for their service, they are full commercial service providers.
• Deficiency in Service under CPA 2019: Under Section 2(11) of the Consumer Protection Act, 2019, any delay or failure in service quality is a legal defect. Holding customer money and giving false updates about airline delays is a direct deficiency in service.
• Unfair Trade Practice under Section 2(47): Keeping customer funds without a valid reason and charging hidden cancellation fees are unfair trade practices. Consumer courts have the power to order refunds, award compensation, and fine delinquent portals.
• Standard Terms Cannot Defeat Consumer Rights: Fine print in mobile apps cannot strip away your statutory rights. Consumer courts consistently hold that one-sided terms do not protect travel portals from refund claims.

These legal protections also apply to hotel bookings and holiday packages. If a holiday company holds your money, you can issue a travel agency tour package refund legal notice to enforce your consumer rights.

Cancelled Ticket Refund Calculation and Deductions Audit

When an airline cancels a flight, you are entitled to a full 100 percent refund of all money paid. Yet travel portals often deduct an illegal "cancellation fee" of Rs 500 to Rs 1,500 per passenger. They also keep the convenience fee you paid at the time of booking.

Under DGCA CAR Section 3, Series M, Part II, neither the airline nor the agent can deduct any cancellation fee when the flight cancellation is initiated by the carrier. The passenger must receive every single rupee back.

The table below shows a real example of a cancelled family booking for three passengers, comparing illegal portal deductions against your true legal entitlement:

As this audit shows, accepting an automated refund calculation without checking can cost you Rs 4,050 in this single case. Every single rupee of that deduction is unlawful and fully recoverable under Indian aviation law.

Statutory Forum and Penalty Matrix for Flight Refund Claims

Choosing the right authority saves time when you need to recover a stuck flight refund. Depending on how long the refund has been delayed, you can choose from administrative, regulatory, or legal routes.

The matrix below outlines the five main options available to passengers in India, along with their expected resolution times and legal powers:

By using this matrix, you put direct pressure on both companies at the same time. You stop talking to basic customer care bots and start dealing with officers who have statutory accountability.

How to Obtain the IATA BSP Credit Memo Reference

The single most powerful move you can make is getting the IATA BSP Credit Memo Reference Number. Once you have this number in writing, the travel portal cannot claim it is waiting for airline clearance.

Follow these three simple steps:

1. Check Your PNR on the Airline Website: Go to the airline website. Enter your 6-character PNR and last name. Take a clear screenshot showing that your flight is cancelled and the booking status is marked as refunded to the agency. Note down the exact date of cancellation.
2. Email the Airline Nodal Officer: Under DGCA rules, every airline in India must appoint a Nodal Officer for passenger grievances. Find their official email on the airline website. Send a brief email with your PNR, ticket numbers, and travel dates. Cite DGCA CAR Section 3, Series M, Part II, Clause 3.3.2. Ask them to provide:
   • The exact date the refund was credited to your travel portal.
   • The IATA BSP Credit Memo Number or Refund Reference.
   • The total rupee amount credited to the travel portal ledger.
3. Confront the Travel Portal with Proof: Airlines usually reply within 48 to 72 hours with the BSP reference details. Once you get this email, forward it to the travel portal grievance officer. State clearly that you have official proof of airline settlement. Demand that the portal release your money to your bank account within 48 hours.

In most cases, sharing the BSP credit memo number breaks the deadlock immediately. The portal knows its excuse has failed and releases your payment.

Drafting a Joint Legal Notice to Airline and OTA Officers

If the travel portal continues to withhold your money after you share the BSP proof, stop sending informal emails. The next step is to send a Joint Legal Notice to the Airline & OTA Nodal Officer through a consumer advocate.

Sending a joint notice is vital. If you send a notice to only one party, that party will blame the other. When you put both the airline and the travel portal on the same legal notice, both legal teams must sit down and verify their accounts.

Your Joint Legal Notice must include these core elements:

• Clear Chronology of Booking: State the booking date, ticket numbers, PNR, flight schedule, total fare paid, and cancellation date.
• Direct Citation of DGCA Rules: Cite DGCA CAR Section 3, Series M, Part II, Clause 3.3.2. Remind the airline of its duty to ensure refund within 14 working days.
• Citation of Supreme Court Precedent: Quote the Supreme Court ruling in Pravasi Legal Cell v. Union of India, highlighting the travel agent duty to pass the refund to you immediately.
• Grounds under Consumer Protection Act: State that holding customer funds is a deficiency in service under Section 2(11) and an unfair trade practice under Section 2(47).
• Clear Demand with 18 Percent Interest: Demand immediate payment of the full refund within 15 days, plus 18 percent annual interest from the 15th day of cancellation.
• Warning of Consumer Court Action: State that if they fail to pay, you will file an e-Daakhil case seeking Rs 50,000 for mental agony and legal costs.

A formal legal notice on an advocate letterhead gets immediate attention from corporate legal teams. Companies know that fighting a consumer case costs them far more than paying your legitimate refund.

Escalating Through AirSewa CCPA and Consumer Commission

If the 15-day notice period ends without payment, you can trigger government enforcement portals. These tools are free, digital, and do not require you to visit any office.

Follow this three-stage escalation path:

1. Lodge an AirSewa Grievance: Go to the Ministry of Civil Aviation AirSewa portal or app. Register a complaint under the category "Refund - Tickets Booked Through Travel Agent". Attach your ticket, cancellation proof, and a copy of your legal notice. AirSewa sends the grievance directly to the airline compliance head and DGCA officials. Carriers must report resolution within 15 days.
2. File a Complaint with the CCPA via NCH: Call the National Consumer Helpline at 1915 or file online at consumerhelpline.gov.in. File an unfair trade practice complaint against the travel portal under Section 2(47) of the Consumer Protection Act. The Central Consumer Protection Authority monitors these portal delays closely.
3. File an Electronic Case on E-Daakhil: If both firms remain stubborn, your consumer court lawyer can file a case on the e-Daakhil portal before your local District Consumer Commission. You can file this case from your home city, regardless of where the airline or portal has its office.

In consumer court, the travel portal must prove every rupee it received and disbursed. The judges regularly order full refunds with high interest and compensation for mental harassment. If you run a business facing unpaid commercial bills or vendor delays, our team also handles commercial invoice recovery across India.

Do not let airlines and online booking portals sit on your hard-earned money. By using DGCA CAR rules, demanding the IATA BSP credit memo, and serving a structured Joint Legal Notice, you can break the blame loop and recover your cancelled flight refund in full.