Chandigarh District Commission Holds MakeMyTrip, Essence Retreat Hotel and OYO Rooms Liable for Arbitrary Hotel Cancellation, Orders Compensation

The District Consumer Disputes Redressal Commission-I, U.T. Chandigarh, presided by Mr. Pawanjit Singh along with Ms. Surjeet Kaur and Mr. Suresh Kumar Sardana as members, recently allowed a consumer complaint against MakeMyTrip (Opposite Party No. 1). The complainant had booked a hotel through Goibibo (Opposite Party No. 2), for a family vacation. However, just before the journey, they were informed of the hotel's unavailability, leading to cancellation and a refund. The commission found that despite the cancellation claim due to the hotel being non-operational, the same rooms were available online at significantly higher rates. Thereby the commission concluded that the cancellation was arbitrary and caused immense mental harassment to the complainant. As a result, MakeMyTrip was held responsible for causing mental agony and harassment to the complainant and directed to pay compensation of Rs.35,000/- and litigation costs of Rs.7000/-. Brief Facts Vineet Marwaha (Complainant) made a booking through Goibibo's (Opposite Party No. 2) website for a stay at The Essence Retreat (Opposite Parties No.3&4) from December 26th to 30th, 2021, paying Rs.10,432/- for a family vacation. However, on December 23rd, 2021, Vineet was notified by Goibibo that the booking got canceled, citing the hotel's non-operational status, and subsequently refunding the paid amount. Dissatisfied with this, Vineet checked online and discovered the same rooms at the same hotel available for those dates but at a much higher price of Rs.27,207/-. Vineet brought this discrepancy to their attention but didn't receive a satisfactory response. Alleging deficient service and unfair trade practices, Vineet filed a consumer complaint against MakeMyTrip, Goibibo and the hotel. Arguments of MakeMyTrip MakeMyTrip contended that it merely acts as an intermediary between the complainant, the hotel, and the hospitality service provider, Oyo. They claimed that they only pass on the payment made by the complainant to the hotel and the service provider, and they merely facilitate the confirmed hotel booking. MakeMyTrip argued that they were not responsible for the cancellation or the increase in rates thereby emphasizing that there was no deficiency in their service or unfair trade practice on their part. Observations by the Commission The Commission noticed that the complainant booked a hotel in advance but faced a sudden cancellation right before the trip. Even though they were told the hotel was not operating, the evidence showed that those same rooms were available online at much higher prices, indicating a potential profit motive behind the cancellation. The commission observed that the complainant likely booked early due to budget constraints during the peak season. Further, the commission found that the cancellation by MakeMyTrip (and other Opposite Parties) without justified reasons caused immense distress and inconvenience to the complainant and their family. Consequently, the Commission allowed the complaint and directed the Opposite Parties (MakeMyTrip, The Hotel and Oyo Rooms) to compensate the complainant with Rs. 35,000/-, along with Rs. 7,000/- as litigation costs. The order was instructed to be complied within thirty days. Case Title: Vineet Marwaha vs. Make My Trip (India) Pvt. Ltd. & Ors. Counsel for Complainant: Sh. Vageesh Marwaha, Advocate Counsel for MakeMyTrip: Gazala Parveen, Advocate proxy for Sh. Nitin Bhasin, Advocate Counsel for OYO Rooms: Sh. Kartik Parmod Goyal, Advocate proxy for Sh. Puneet Tuli, Advocate Click here to Read/Download the Order

Chandigarh District Commission Holds MakeMyTrip, Essence Retreat Hotel and OYO Rooms Liable for Arbitrary Hotel Cancellation, Orders Compensation

Apoorva Pandita

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Apoorva Pandita

Chandigarh District Commission Holds MakeMyTrip, Essence Retreat Hotel and OYO Rooms Liable for Arbitrary Hotel Cancellation, Orders Compensation

Apoorva Pandita

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Apoorva Pandita

This is a premium content
Available exclusively to
Our subscribers