Consumer Court Penalizes MakeMyTrip & OYO for Faulty Services, Orders ₹50,000 Compensation | File Photo
Mumbai: The Central Mumbai District Consumer Dispute Redressal Commission (DCDRC) has penalized e-commerce travel portal MakeMyTrip (MMT) and OYO, holding them guilty of providing faulty services to Dr. Ridhina Nagwekar, a 34-year-old dentist from Prabhadevi.
The commission directed the firms to pay Rs 50,000 as compensation for the complainant’s mental agony within 60 days of the order. Failure to comply will result in an additional interest of 9% per annum.
“A person plans a vacation after making several adjustments in cost and time. Advance bookings are made not just to avail discounted rates but also to ensure a confirmed stay at the desired hotel. The services of an online portal like this are availed for the assurance of credibility and reliability. Mere refund of the booking amount with petty compensation does not do justice to a customer whose vacation is ruined. Undoubtedly, the complainant and her family friends underwent tremendous harassment, agony, loss, and discomfort at a tourist destination during the peak winter holiday season. This ruined their vacation, for which they deserve suitable compensation. The complainant also faced embarrassment due to the botched-up vacation plan for her friends,” the commission observed in its order.
The case dates back to December 2019, when Dr. Nagwekar booked a stay at an OYO-affiliated hotel in Himachal Pradesh through MMT for her two family friends. The bookings were made for December 24, 2019, to December 26, 2019, and she paid Rs 3,406 and Rs 3,808 online.
However, when her family friends arrived at the hotel, they were denied check-in, with the hotel staff claiming that the booking was made at off-season rates. The hotel demanded an additional amount much higher than what was already paid to MMT. As a result, they were forced to find alternate accommodation at higher last-minute prices, causing them significant inconvenience and loss of valuable travel time.
Dr. Nagwekar stated that despite advance booking and payment, her family friends were left stranded, leading to embarrassment and mental agony. The online booking portals had approved the reservation under a contract, and it was their duty to ensure accommodation at the same hotel, she argued.
In its response, MMT claimed that the complaint was frivolous, misconceived, and filed with malafide intent by suppressing material facts.
“MMT is a consumer-centric company that provides first-class travel services, including airline, railway, bus, and hotel bookings at competitive prices. It acts only as a facilitator, forwarding customer requests to service providers. Once the service provider confirms, a booking ID is generated, and the details are shared with the customer. Once a booking is confirmed, MMT is discharged from any further obligations. All online transactions are governed by the website’s user agreement, which users consent to before availing of services. Full refunds were already provided to the complainant, along with an additional Rs 2,000 credited to her MMT wallet as compensation for the inconvenience caused due to the OYO-run hotel’s refusal,” MMT stated in its reply.
Advocate Prashant Nayak, appearing for Dr. Nagwekar, said, “The commission has rightly held the firms guilty of deficiency in service and unfair trade practices. Though I am slightly disappointed that no specific compensation was awarded for litigation expenses despite the case lasting over five years, I am overall satisfied with the verdict. This is a positive step toward ensuring fair compensation for consumers who endure prolonged legal battles. Now, companies like MMT cannot escape responsibility by falsely claiming to be mere facilitators.”
The complainant, Dr. Nagwekar, also welcomed the decision, stating, “I am satisfied with the verdict, especially compared to my previous cases where I received meager compensation. However, I hope that courts will also start considering litigation expenses incurred by complainants over the years and grant suitable compensation along with mental agony damages.”
In 2024, Dr. Nagwekar won a case against Hotel Thangabali, which had charged a ₹75 service fee on a total bill of Rs 1,393. The commission held the hotel guilty and awarded her Rs 2,000 for mental agony and Rs 3,000 for litigation expenses. However, she has appealed against the meager compensation in that case.
