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DGCA Slaps Rs 22.2 Crore Penalty On IndiGo; Orders Rs 50 Crore Bank Guarantee

A DGCA committee found that disruptions at IndiGo stemmed from overoptimisation of operations, inadequate regulatory preparedness, and more.

DGCA Slaps Rs 22.2 Crore Penalty On IndiGo; Orders Rs 50 Crore Bank Guarantee
A DGCA committee found that disruptions at IndiGo stemmed from overoptimisation of operations, and more.
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India's aviation regulator DGCA has imposed a Rs 22.2 crore penalty on IndiGo for a series of operational and oversight failures, alongside ordering the airline to furnish a Rs 50 crore bank guarantee to ensure compliance and long‑term systemic corrections, according to findings of the DGCA Commitee report.

A DGCA committee found that disruptions at IndiGo stemmed from over‑optimisation of operations, inadequate regulatory preparedness, deficiencies in system software support, and shortcomings in management structure and operational control. The regulator concluded these gaps led to continued non‑compliance despite directives meant to stabilise operations and protect safety.

A total of six different penalties have been imposed on IndiGo:

  • Rs 30 lakh penalty imposed for failure to establish and effectively implement FDTL.
  • Rs 30 lakh penalty imposed on failure to strike balance between commercial imperatives and crew members' ability to work effectively.
  • Rs 30 lakh penalty imposed for non-compliance with instructions outlining responsibilities of operations personnel pertaining to the conduct of flight operations.
  • Rs 30 lakh penalty imposed for Improper delegation and exercise of operational control responsibilities contrary to approved methods.
  • Rs 30 lakh penalty imposed for failure of accountable management to ensure overall functioning, financing, and conduct of operations to DGCA standards.
  • Rs 30 lakh penalty imposed for post holders failure to discharge duties with adequate understanding of aviation safety standards, CARs, and operational manuals.

Actions On Officials

DGCA has cautioned the CEO for inadequate overall oversight of flight operations and crisis management. DGCA has warned the Accountable Manager (COO) for failure to assess the impact of Winter Schedule 2025 and the revised FDTL.

Warning issued to the Senior Vice President (OCC) with directions to relieve him of current operational responsibilities. DGCA has warned Deputy Head – Flight Operations, AVP – Crew Resource Planning and Director – Flight Ops.

Breakdown Of Penalty

- Daily Penalty: Rs 30,00,000

- Total Days of Non-Compliance: 68 days

- Total Penalty for Continued Non-Compliance: 68 × Rs 30,00,000 = Rs 20,40,00,000/-

- Total penalty - Rs 20.40 cr Twenty Crore Forty Lakh Only)

- One-time systemic penalties Rs 1.80 crore

- Total penalty - Rs 22.2 crore

The DGCA Commitee report also found that the IndiGo management failed to adequately identify planning deficiencies, maintain sufficient operational buffer and effectively implement the revised FDTL provisions.

There was an overriding focus on maximising utilisation of crew, aircraft, and network resources, which significantly reduced roster buffer margins.

IndiGo Chairman Statement

IndiGo Chairman Vikram Singh Mehta said in a statement: "We are in receipt of the orders of the Directorate General of Civil Aviation of India in relation to the events which led to a major operational disruption of IndiGo's flights in early
December, 2025."

"We would like to take this opportunity to inform all of our stakeholders, particularly our valued customers, that the Board and the Management of IndiGo are committed to taking full cognizance of the orders and will, in a thoughtful and timely manner, take appropriate measures."

"Additionally, an in-depth review of the robustness and resilience of the internal processes at IndiGo has been underway since the disruption to ensure that the airline emerges stronger out of these events in its otherwise pristine record of 19+ years of operations."

"IndiGo remains committed to steadfastly serving the needs of India and her people, and play a humble role in ensuring that our country emerges as a Global aviation major by 2030."

Process Of implementation And Release Of Bank Guarantee

DGCA verified implementation of reforms will be based across four pillars:

1) Leadership and governance 

Rs 10 crore will be released upon certification within three months.

2) Manpower planning, rostering and fatigue-risk management 

Rs 15 crore linked to initial and sustained compliance will be released over six months.

3) Digital systems and operational resilience 

Rs 15 crore will be released upon acceptance of upgrades and safeguards within nine months.

4) Board-level oversight with sustained compliance 

Rs 10 crore after six months of continued adherence over a 9–15 month period.

Release of the bank guarantee will be contingent upon independent verification and certification by DGCA at each stage. This has been undertaken to ensure that systemic reforms being undertaken are closely monitored by MoCA and DGCA, the DGCA Comitte report concluded.

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