Mumbai: Shares of InterGlobe Aviation, the parent company of IndiGo, fell nearly 4 percent during Thursday morning trading after the Competition Commission of India (CCI) ordered a detailed investigation into alleged unfair business practices. The stock dropped 3.65 percent to Rs 4,782.45 on the BSE. On the NSE, the shares declined 3.63 percent to Rs 4,780.30 per share, reflecting investor concern over regulatory risks.
CCI Orders Detailed Investigation
The CCI on Wednesday directed a detailed probe into the airline’s business conduct. The order came nearly two months after IndiGo cancelled thousands of flights due to operational disruptions. These cancellations caused major inconvenience to passengers and raised questions about service reliability in India’s aviation sector.
The regulator reviewed data from airlines and inputs from aviation watchdog DGCA before taking the decision. Based on this review, CCI said there is a prima facie case suggesting IndiGo may have misused its dominant market position.
Allegations Of Market Restriction
According to the CCI’s 16-page order, IndiGo cancelled a large number of flights that formed a significant share of its scheduled capacity. The regulator said this may have created artificial scarcity in the market. This situation may have reduced consumer access to air travel, especially during periods of high demand.
CCI said such behaviour could be seen as restricting services under Section 4(2)(b)(i) of the Competition Act. Section 4 deals with abuse of dominant market position by a company.
Competition Impact Under Review
The regulator also noted that IndiGo’s actions may have caused an appreciable negative impact on competition in India’s aviation sector. Following this initial view, CCI has asked its Director General (DG) to carry out a detailed investigation and submit findings.
The outcome of this probe could have regulatory and financial implications for the airline, depending on the final conclusions.
Disclaimer: This news report is based on regulatory disclosures and publicly available information. The investigation is ongoing, and final conclusions are pending. Readers should not treat this as legal or investment advice.
