Description

Competition Commission of India (CCI) has passed a prima facie order directing an investigation against InterGlobe Aviation Limited regarding alleged creation of artificial shortage of seats during December flight chaos.

Summary

InterGlobe Aviation Limited (IndiGo) has disclosed that the Competition Commission of India (CCI) issued a prima facie order dated February 4, 2026 under Section 26(1) of the Competition Act, 2002, directing the CCI’s Director General to initiate an investigation against the company. This follows allegations of creating an artificial shortage of seats during December flight chaos. The company is currently reviewing the order and will take appropriate recourse.

Key Points

  • CCI passed prima facie order on February 4, 2026 under Section 26(1) of Competition Act, 2002
  • Director General (DG) of CCI directed to initiate investigation against InterGlobe Aviation Limited
  • Investigation relates to alleged artificial shortage of seats during December flight chaos
  • Company clarified this is only a prima facie order to initiate investigation, not a final determination
  • InterGlobe Aviation is reviewing the order and will take appropriate recourse
  • Disclosure made under Regulation 30 of SEBI (LODR) Regulations, 2015
  • Scrip Code: 539448 (BSE), Symbol: INDIGO (NSE)
  • CCI order is publicly available on Competition Commission of India website

Regulatory Changes

No regulatory changes introduced. This is a disclosure of an ongoing regulatory investigation by CCI under existing Competition Act, 2002 provisions.

Compliance Requirements

  • Company has complied with Regulation 30 disclosure requirements by informing stock exchanges
  • Company must cooperate with CCI’s Director General investigation process
  • Company is required to respond to BSE Surveillance query regarding news article published on Moneycontrol
  • Investigation is under Section 26(1) of Competition Act, 2002

Important Dates

  • February 4, 2026: CCI issued prima facie order directing investigation
  • February 5, 2026: Company made disclosure to BSE and NSE
  • February 5, 2026: News article published on Moneycontrol regarding the matter
  • February 5, 2026: Company responded to BSE Surveillance query (Ref. No.: L/SURV/ONL/RV/SG/(2025–2026)/181)

Impact Assessment

Legal and Regulatory Impact: High - CCI investigation under Competition Act can result in penalties, behavioral remedies, or structural changes if violations are found. Investigation relates to potential anti-competitive practices in seat availability management.

Market Impact: High - IndiGo is India’s largest airline, and investigation into alleged artificial seat shortage practices could affect investor confidence and stock performance. The December flight chaos mentioned suggests operational disruptions that may have affected thousands of passengers.

Reputational Impact: High - Allegations of deliberately creating artificial shortage to manipulate prices or availability could damage brand reputation and customer trust.

Operational Impact: Medium to High - Depending on investigation findings, company may need to modify operational and pricing practices. Investigation process itself requires management attention and resources.

Timeline: Investigation timeline uncertain - prima facie order is initial stage. Director General investigation can take several months to complete before CCI makes final determination.

Impact Justification

CCI investigation into India's largest airline for potential anti-competitive practices could have significant legal and reputational consequences. Prima facie order indicates regulatory concern requiring thorough investigation.