Paytm Ordered to Refund Cancelled Flight Ticket After Consumer Court Ruling

A district consumer commission in Himachal Pradesh has directed Paytm to refund the amount for a cancelled flight ticket to a customer, along with compensation, legal costs and interest, after holding the fintech platform responsible for failing to complete the refund process, according to a report by The Times of India (TOI).

The Bilaspur District Consumer Disputes Redressal Commission, in an order dated July 18, held Paytm liable for deficiency in service while dismissing the complaint against Go Airlines after finding that the airline had already transferred the refund amount to the booking platform, the report said.

The case relates to a return flight booked between Chandigarh and Srinagar through Paytm. The return journey, scheduled for April 7, 2020, was cancelled due to the nationwide COVID-19 lockdown.

How the Refund Dispute Began

According to the report, the customer repeatedly contacted both the airline and Paytm seeking a refund after the flight was cancelled but did not receive the money. He later approached the consumer commission, alleging deficiency in service.

Go Airlines told the commission that it had introduced a 'Protect Your PNR' scheme, allowing passengers to use the ticket amount for future travel instead of seeking an immediate refund. After the scheme expired, the airline processed the refund and transferred ₹6,437 to Paytm, through which the ticket had been booked.

Paytm, however, argued that it had shared refund links with the customer twice, but the links expired because he did not complete the refund process within the stipulated time, the publication reported.

Commission Holds Paytm Liable

The commission held that once Go Airlines had transferred the refund amount to Paytm, it became the platform's responsibility to ensure the money reached the customer. It rejected Paytm's argument that the customer was responsible because the refund links had expired, saying the company had failed to provide sufficient evidence to support its claim.

The commission also observed that Paytm could have obtained the customer's bank account details and transferred the refund directly instead of contesting the matter before the consumer forum.

It further held that Paytm failed to discharge its responsibility of completing the refund process, which amounted to "deficiency in service," the report added.

Refund, Compensation and Interest Ordered

The commission observed that the customer was unnecessarily forced to approach the consumer forum even though the airline had already transferred the refund amount to Paytm, according to TOI.

It directed Paytm to refund ₹6,437 to the customer along with 6% annual interest from the date the complaint was filed until the payment is made.

The commission also ordered the company to pay ₹10,000 as compensation for the inconvenience caused and ₹5,000 towards litigation costs. The complaint against Go Airlines was dismissed after the commission found that the airline had fulfilled its responsibility by transferring the refund amount to Paytm, the report added.