The civil aviation regulator, the DGCA, has imposed limitations on airlines in the event that a customer with a valid ticket who arrived on time is denied boarding.
The Directorate General of Civil Aviation issued a statement on the situation on Tuesday.
According to the civil aviation regulation, no compensation is due if an airline is able to find an alternate flight for the passenger within an hour.
The DGCA said in an official statement that if the airline is able to provide the other arrangement within the following 24 hours, a compensation of up to $10,000 is required.
The DGCA further stated that if the delay exceeds 24 hours, the DGCA will provide a compensation of up to Rs.20,000.
"Our stipulations on the subject are in sync with Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) and similar regulations are followed globally to accord appropriate respect to passenger rights," the statement said.
Recently, DGCA issued strict instructions to all domestic Airlines to abide by the said regulation in letter and spirit.
"After that, a series of checks were carried out by DGCA and during our surveillance at Bengaluru, Hyderabad and Delhi, there were specific instances, in the case of Air India - where the regulation is not being followed and therefore, a show-cause notice was issued to the Airline and also a personal hearing was afforded," it said.
Furthermore, the airline has been urged to put mechanisms in place as soon as possible to rectify the issue, failing which the DGCA will take further action.
"It appears that the Airline does not have a policy in this regard and is not paying any compensation to hapless passengers, whose numbers can be anybody's guess. To say the least, it is a matter of serious concern and unacceptable. In the specific cases detailed in the SCN, after going through AI submissions, as part of enforcement action, the competent authority has levied a penalty of ₹10 lakhs," the DGCA added.