Go First Insolvency Row: FIR Against Former Board, DGCA Official, EaseMyTrip and Cleartrip

New Delhi: The legal troubles surrounding the insolvency proceedings of now-grounded airline Go First have intensified after Ernakulam Police registered an FIR against the company’s former board of directors, an unnamed official of the Directorate General of Civil Aviation (DGCA), travel booking platforms EaseMyTrip and Cleartrip, and the airline’s Resolution Professional.

The FIR, filed on July 9, relates to allegations of cheating and criminal breach of trust connected with ticket bookings made after Go First had begun its insolvency process. The case was registered under relevant provisions of the Bharatiya Nyaya Sanhita (BNS), including sections related to breach of trust, cheating, and fraudulent conduct.

The action follows an order from the Chief Judicial Magistrate Court in Ernakulam based on a complaint filed by aviation safety activist and advocate Yeshwant Shenoy. The complaint alleged that ticket sales continued despite the airline’s decision to seek voluntary insolvency, potentially causing financial losses to passengers.

Allegations Over Ticket Sales During Insolvency Process

According to the complaint, Go First’s board approved the decision to initiate insolvency proceedings on April 28, 2023. Shareholders later approved the move during an Extraordinary General Meeting on April 30, and the airline approached the National Company Law Tribunal (NCLT) on May 2, 2023.

However, the complaint claims that ticket bookings continued until May 10, allowing passengers to purchase tickets for flights that were later cancelled after the airline suspended operations.

Those named in the FIR include former chairman Nusli Neville Wadia, director Ness Nusli Wadia, former CEO Kaushik Khona, other former board members, an unidentified DGCA official, online travel companies EaseMyTrip and Cleartrip, and Resolution Professional Shailendra Ajmera.

Passenger Claims Financial Loss

The complainant stated that he personally suffered a loss of ₹64,000 after booking Kochi-Mumbai flight tickets for family members and friends on the same day Go First filed its insolvency application.

He alleged that despite raising concerns with the aviation regulator, action to stop advance bookings was taken only on May 10 following intervention by the Kerala High Court.

The complaint further alleges that the DGCA was aware of Go First’s financial difficulties but failed to take timely steps to protect passengers. It referred to previous regulatory actions involving financially distressed airlines, including restrictions placed on advance bookings during earlier crises.

Dispute Over Scale of Passenger Losses

The complaint has also questioned the reported financial impact on passengers. Go First had stated that around 4,118 flights were cancelled in April 2023, affecting nearly 77,500 passengers.

While media reports estimated passenger-related claims at approximately ₹900 crore, the complainant argued that the actual amount collected from passengers could have been significantly higher, alleging that bookings continued for additional days despite the airline’s financial situation.

The FIR alleges that the accused parties may have caused financial harm to passengers while benefiting from continued ticket transactions despite the airline’s expected operational shutdown.

Investigation to Examine Records and Communications

The police investigation is expected to examine various documents, including board decisions, communications between Go First and regulatory authorities, booking details, payment records, and the role of online travel platforms in processing ticket sales.

The probe will also look into whether adequate disclosures and warnings were provided to passengers during the period between the insolvency decision and the suspension of bookings.

Experts Highlight Need for Stronger Consumer Protection

Cybercrime and digital fraud experts have noted that while the case primarily involves corporate and regulatory issues, online platforms handling consumer payments must maintain strict compliance standards during periods of financial uncertainty.

Experts have stressed the importance of timely coordination between regulators, airlines, payment providers, and booking platforms to ensure passengers are informed quickly and protected from avoidable losses.

The matter is currently under investigation. The allegations mentioned in the FIR remain unproven, and no court has established guilt against any of the individuals or organisations named in the case.