State Commission Ruling on OTA Liability for Delayed Flight Cancellation Refunds
Parties: Cleartrip Private Limited v. Rajesh Kumar & Air India Limited
A consumer booked return air tickets through Cleartrip. Upon airline cancellation due to operational reasons, Cleartrip's customer dashboard repeatedly indicated 'Refund under process with airline', withholding the fare for over seven months while the carrier asserted that funds had been returned to Cleartrip's corporate account.
The State Commission dismissed Cleartrip's appeal and held that Online Travel Aggregators (OTAs) that collect payment directly from consumers cannot pass off their responsibilities onto airlines. Under Section 2(11) of the Consumer Protection Act, 2019, failure to credit the refund within statutory timelines constitutes joint and several deficiency of service.