Intermediary Liability
Subject : Consumer Law - E-Commerce and Digital Services
New Delhi – In a significant ruling that scrutinizes the liability of online travel aggregators (OTAs), the Delhi District Consumer Disputes Redressal Commission (North District) has held MakeMyTrip India Pvt. Ltd. liable for a severe "deficiency in service." The Commission rejected the company's long-standing argument that it acts merely as a "facilitator" with limited liability, ordering it to pay ₹1,50,000 in compensation to a senior citizen couple left stranded without confirmed hotel accommodations during an international tour.
The decision, delivered by a bench comprising Divya Jyoti (President) and Harpreet Kaur Charya (Member), underscores that selling a comprehensive "package tour" entails a higher degree of responsibility than merely connecting a user to an end-service provider. The Commission found that a full refund of the booking amount does not absolve an aggregator of its liability for the mental agony and harassment caused by its negligence.
The complaint was filed by Mr. Raj Rishi Aneja, a 69-year-old who had booked an 8-day holiday package to Sri Lanka for himself and his wife through MakeMyTrip on December 9, 2023. The package, for which full payment was made, included flights, hotel stays, and local travel.
The couple's ordeal began on Christmas Day, December 25, 2023, upon their arrival at the Earl's Regent Hotel in Kandy. They were informed by hotel staff that no booking had been made in their name and that the hotel was fully occupied. Despite frantic calls to MakeMyTrip's support team by the complainant and his son in India, no immediate resolution was offered. Instead, the company's executives eventually advised Mr. Aneja to find and book an alternative hotel on his own.
Stranded in a foreign country during the peak holiday season, the couple was forced to arrange their own accommodation at the Queens Hotel, incurring an expense of 55,000 Sri Lankan Rupees. Their distress was compounded two days later, on December 27, when they reached their second hotel, Araliya Red in Nuwara Eliya. While a booking existed, the hotel informed them that it had not received payment from MakeMyTrip, leading to further delays and humiliation.
An email from MakeMyTrip on December 26, 2023, acknowledging its inability to arrange alternate accommodation and offering a refund for the Kandy hotel, was followed by an offer of a ₹5,000 travel voucher. Mr. Aneja deemed this response wholly inadequate and, after returning to India, sent a legal notice on February 5, 2024, demanding ₹3,00,000 in compensation.
Before the Commission, MakeMyTrip's defense hinged on the terms of its user agreement. The company argued it was not a "proper nor a necessary party" to the dispute, which it claimed was between the complainant and the end-service provider (the hotel). It contended that its role was limited to that of a facilitator, and its liability ceased once a booking ID was generated and provided to the customer. It further highlighted that it had processed a full refund of ₹15,359 for the failed booking.
This defense, commonly employed by digital platforms and aggregators, seeks to insulate them from failures by the ultimate service providers. However, the Commission meticulously dismantled this argument in the context of a package tour.
The bench observed, "The Commission examined all the facts and documents on record and observed that the complainant had availed a travel package through the opposite party who was responsible for making necessary reservations." The crucial distinction was that Mr. Aneja had not booked standalone services but a comprehensive package, for which MakeMyTrip was the single point of contact and payment.
The Commission found the issuance of an itinerary with a "Hotel Booking reference ID" and "Hotel PNR No." to be misleading, as the hotel in Kandy had flatly denied any such reservation. The argument that a refund was a sufficient remedy was also unequivocally rejected. The bench noted that MakeMyTrip failed to take any proactive steps to assist the stranded senior citizens and offered no satisfactory explanation for its failure. "The Commission further held that refunding the booking fee did not absolve MakeMyTrip of liability," a key observation in the order.
This ruling carries significant weight for the burgeoning online travel and e-commerce sector. It reinforces a critical principle in consumer law: a platform's self-defined role in a user agreement does not automatically shield it from liability, especially when its actions—or inactions—are the direct cause of the consumer's grievance.
Finding a clear deficiency in service that ruined the couple's vacation, the Commission allowed the complaint. It directed MakeMyTrip India Pvt. Ltd. to pay ₹1,50,000 as comprehensive compensation to Mr. Aneja. The amount is to be paid within 30 days, failing which it will attract interest at a rate of 7% per annum from the date of the order until it is fully realized.
The case, Raj Rishi Aneja vs Make My Trip India Pvt. Ltd. , is a landmark for consumers, clarifying that when they purchase a promise of a hassle-free experience from a major brand, they are entitled to precisely that—not a series of excuses and a belated refund when things go wrong. For online travel aggregators, it is a clear signal that the "facilitator" defense is wearing thin, and accountability for the entire consumer journey is paramount.
#ConsumerProtection #IntermediaryLiability #TravelLaw
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