Government orders IndiGo to clear all pending refunds by 7 December

The Union Ministry of Civil Aviation on Friday directed IndiGo to complete all pending passenger refunds arising from flight cancellations and disruptions by 8:00 PM tomorrow (7 December).

The Ministry said the directive was issued after widespread delays, cancellations and operational constraints over the past week left thousands of passengers seeking refunds, rescheduling options and compensation.

"The Ministry of Civil Aviation has directed IndiGo to clear all pending passenger refunds without delay. The Ministry has mandated that the refund process for all cancelled or disrupted flights must be fully completed by 8:00 PM on Sunday, 7 December 2025. Airlines have also been instructed not to levy any rescheduling charges for passengers whose travel plans were affected by cancellations. The Ministry has clarified that any delay or non-compliance in refund processing will invite immediate regulatory action," a press statement dated December 6 mentioned.

It warned that any delay, deviation or non-compliance in the refund process would invite immediate regulatory action under applicable aviation rules.

In its advisory to the airline, the Ministry stated that passengers whose flights were cancelled or rescheduled must not be charged any fee for altering their travel plans. Airlines have been asked to ensure that affected passengers can either choose an alternative flight or seek a full refund without incurring additional costs.

The Ministry emphasised that the protective framework under India’s passenger rights charter must be strictly followed throughout the recovery period.

To streamline grievance redressal, IndiGo has been instructed to establish dedicated passenger support and refund facilitation cells.

These cells are required to proactively reach out to all travellers impacted by the disruptions, process refunds within the stipulated timeline, and offer rebooking assistance where needed.

According to the Ministry, this mechanism is intended to minimise repeat follow-ups by passengers and ensure faster dispute resolution. The system of automatic refunds, which triggers refunds without manual request, will remain active until the airline’s operations return to normal levels.

The Ministry also issued directives on baggage handling after reports that several passengers were separated from their baggage following abrupt cancellations. IndiGo has been asked to track, trace and deliver all such baggage to passengers’ homes or any location of their choice within the next 48 hours.

Airlines have further been instructed to maintain transparent communication on baggage status and delivery timelines, and to provide compensation wherever mandated under existing regulations.

Officials said the Ministry was maintaining a “zero-inconvenience approach” during the disruption period.

Coordination mechanisms with airlines, airport operators, security agencies and other operational stakeholders have been strengthened to ensure smooth passenger facilitation. Special attention has been directed towards senior citizens, differently-abled passengers, students, medical travellers and those requiring urgent movement.

The Ministry added that oversight teams were monitoring the operational recovery on a rolling basis and would intervene wherever gaps were identified.

It reiterated that the government remained committed to restoring complete normalcy in airline operations at the earliest while ensuring that passenger rights and entitlements were fully upheld.

With inputs from PTI