Sources said that on Monday, the cabin crew of SpiceJet performed a small dance sequence on a song as part of Holi celebrations, with some passengers also joining in.
The videos of these events were taken and uploaded on video-sharing website YouTube and other social media.
In one video, a pilot is seen coming out of the cockpit and taking photographs of the celebrations at the front of the aisle.
Official sources said the act constituted violation of all safety norms and two pilots were suspended.
SpiceJet on March 17 ran eight special flights with extra cabin crew on board to do a 2.5-minute jig on the occasion of Holi.
The airline said it was looking into the issue in cooperation with the DGCA.
It defended itself saying that the cockpit was manned all the time.
"The cockpit was manned at all time as per DGCA regulations that govern the situation when one pilot is outside for example to use the lavatory," an airline spokesperson told PTI.
"The dance was professionally choreographed and was Holi delight for passengers much like it is done by several airlines around the world to celebrate a special occasion. The entire dance sequence lasted 2.5 minutes," the spokesperson said.