Mohali Company Gets Rs 8 Lakh Refund After Travel Firm's Booking Error

The District Consumer Disputes Redressal Commission has directed travel firm XpenseCo to refund Rs 8 lakh to Mohali-based Cargaison Logistic due to a deficiency in service. The agency was tasked with arranging a corporate trip for the company's employees.

The commission, led by President SK Aggarwal and member Paramjeet Kaur, ordered XpenseCo to refund the amount with 6% annual interest calculated from September 24, 2022 (the original trip date).

It also ordered the firm to pay Rs 50,000 as compensation for litigation expenses, mental agony, and harassment.

Also Read: India Announces Free 30-Day Tourist Visas For Thai Nationals Till 2027

What Went Wrong?

Cargaison Logistic booked a corporate holiday for its employees through XpenseCo, paying Rs 6 lakh for 42 IndiGo tickets and Rs 1 lakh for 16 hotel rooms for two days. 

But the bookings were made for September 22 to 24, 2022, instead of the intended September 24 to 26 dates. After finding an error, the logistics company requested a change in travel dates. XpenseCo demanded an extra Rs 3,045 per ticket.

Despite Cargaison paying an additional Rs 2 lakh to secure the change, the travel firm failed to update the dates.

Consequently, the Mohali company had to buy completely new tickets on its own to make the trip happen.

The company further claimed that XpenseCo had stated that the hotel reservation might be rescheduled. However, the hotel informed it that the reservation had been made through Yatra.com and that any adjustments needed to be made through the portal.

The commission calculated that Cargaison had paid a total of Rs 9 lakh, including the additional amount for the proposed date change. After deducting a partial refund of Rs 1 lakh previously returned by XpenseCo, the consumer court fixed the final outstanding refund at Rs 8 lakh. 

The commission determined that XpenseCo had agreed to arrange the trip, accepted the payment, then failed to deliver the service as promised. It stated that the corporation had to make new travel arrangements due to the failure.

Also Read: Paid For A Dream Holiday, Got Lower-Category Hotels Instead. Club Faces Rs 95,000 Refund Order

Notably, the complaint against the airline, IndiGo, was dismissed.

The airline informed the commission that the group booking was made through a third-party travel agent and was subject to its group reservation policies. It stated that it had issued a refund of Rs 28,440 for four seats after deducting relevant cancellation charges.

The commission asked XpenseCo to pay within 30 days of obtaining the certified order. If it fails to do so, the balance will accrue 9% yearly interest until paid.