New Delhi: The Supreme Court on Friday reserved its verdict on a petition seeking refund of the full amount on cancelled air tickets booked during the COVID lockdown.
The bench led by Justice Ashok Bhushan had asked the DGCA to file an additional affidavit in the last hearing clarifying certain doubts regarding travel agents and credit shell.
The DGCA today told the apex court that they cannot regulate the travel agents, but would suggest that passengers use the credit shell only through an agent. The voucher of the amount is transferrable by the passenger, but the DGCA prayed before the court to pass an order on whether it has to be done through the same agent.
Travel agents objected to the DGCA's proposal of credit shell till March 2021, as they will have to wait till then for the refund amount, but SG Tushar Mehta assured that the concerns would be considered.
As per the DGCA affidavit, 0.5% interest will have to be paid by the airlines till June 2020 and thereafter it will be increased to 0.75%. If the credit shell remains unused by the passenger till March 31 2021, it will be refunded. Air Asia and Vistara opposed levying of interest, saying that there is an impression created that money is retained by the airlines in some bank.
Though the Supreme Court said that the above was not a penal interest, the airlines responded saying that such high interest makes it a penalty. Rate of FD is much less and we are being asked to pay 9%, said the airlines.
Read: Air tickets: SC asks Centre to clarify on refunds
One of the issues which the petitioner wanted clarification on, was whether passengers booking tickets for flights departing from abroad but arriving in India, will get the refund. It was clarified by SG Mehta today that they do not have the jurisdiction for flights originating from other countries, but refund will be given to those who booked tickets from India.
GoAirlines contended before the court today that working capital is frozen and there are expenses to incur. However, the Supreme Court set aside the arguments saying that it is the airline's problem and passengers' money should not be held back for that reason. In case the airlines want relaxation they will have to approach the government, the court said.
On September 9, the top court had asked the Centre to clarify whether it is willing to give a complete refund of air tickets booked for travel during the COVID-19 lockdown.
The DGCA, in its affidavit said that full refund shall be provided by airlines immediately for tickets booked during the COVID-19 lockdown for domestic or international travel within the lockdown period.
It had said if airlines are not able to refund on account of financial distress, they shall provide a credit shell equal to the amount of fare collected and this shall be issued in the name of the passenger who has booked the ticket for domestic travel directly or through an agent including online platforms.
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