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MakeMyTrip Held Liable for Failed Hotel Booking: Consumer Awarded Refund, Compensation, and Punitive Damages

Bangalore Consumer Commission Slams MakeMyTrip for Deficiency in Service and Unfair Trade Practices

The District Consumer Disputes Redressal Commission, Bangalore, has issued a landmark judgment against MakeMyTrip for its failure to honor a confirmed hotel booking in London, leaving the complainant stranded on the streets. The Commission directed MakeMyTrip and its directors to refund the complainant's excess expenses, compensate for mental agony, and pay punitive damages for unfair trade practices.

Case Background

The Complaint:

• Complainant: Mr. Mayur Bharath, a Bengaluru resident, booked a five-star suite at St. James Hotel and Club, Mayfair, London, via MakeMyTrip on February 28, 2022, for his business trip scheduled from June 24 to June 30, 2022.
• Booking Details: The complainant paid ₹2,24,320/- upfront through a credit card and received confirmation of the booking.
• Upon reaching the hotel after a 12-hour flight, he was informed that no reservation existed in his name. Multiple calls to MakeMyTrip’s hotline failed to provide any resolution.

Forced Alternative:

• Stranded on the streets of London for over 2.5 hours, the complainant had no choice but to book an alternative accommodation at the Café Royal Hotel, costing ₹6,58,740/- for three nights, a significantly higher amount due to peak season prices during the Wimbledon Tennis Tournament.

MakeMyTrip’s Response:

• After repeated follow-ups, MakeMyTrip refunded the original booking amount of ₹2,24,320/- but refused to cover the excess cost incurred by the complainant.
• The complainant issued a legal notice and filed a case, alleging deficiency in service, negligence, and unfair trade practices.

Commission’s Findings

Deficiency in Service:

• The Commission held that MakeMyTrip’s failure to honor the confirmed booking and provide alternative arrangements constituted gross negligence and deficiency in service.
• Despite charging the full booking amount four months in advance, MakeMyTrip neither ensured the reservation nor assisted the complainant when the issue arose.

Unfair Trade Practices:

• MakeMyTrip’s lack of response and refusal to cover the excess cost caused severe inconvenience, financial loss, and embarrassment to the complainant, amounting to unfair trade practices.

Accountability of E-Commerce Platforms:

• The Commission rejected MakeMyTrip’s argument that it merely acted as a facilitator and had no liability. The platform was held responsible as it managed the booking process, accepted payments, and failed to ensure service delivery.

Punitive Measures:

• The Commission noted that MakeMyTrip’s negligence eroded consumer trust in e-commerce platforms and imposed punitive damages to deter future misconduct.

Commission’s Order

The District Consumer Commission issued the following directives:

Refund and Compensation:

• Refund ₹4,34,420/- (excess amount paid for the alternative hotel) with 10% annual interest from June 24, 2022, until realization.
• Pay ₹1,00,000/- as compensation for mental agony and inconvenience caused to the complainant.
• Pay ₹20,000/- as litigation expenses.

Punitive Damages:

• Deposit ₹25,000/- into the Consumer Welfare Fund under Section 39(1)(g) of the Consumer Protection Act, 2019, to discourage unfair trade practices.

Compliance Deadline:

• The directives must be complied with within 30 days, failing which:
  • The refund and compensation amounts will accrue 12% annual interest until realization.
  • Punitive damages will also attract 12% annual interest.

Copy of Order:

• Furnish certified copies of the order to all parties free of cost.

Implications of the Judgment

Strengthened Consumer Rights:

• This case underscores that e-commerce platforms are accountable for the services offered on their platforms and cannot evade liability for negligence.

Deterrence of Malpractices:

• The punitive damages imposed serve as a warning to e-commerce platforms to prioritize consumer satisfaction and ensure reliability in their operations.

Precedent for E-Commerce Accountability: