InterGlobe Aviation Faces CCI Probe: IndiGo's Turbulence Amid Unfair Practice Allegations

Shares of InterGlobe Aviation, IndiGo's parent company, fell nearly 1% after the Competition Commission initiated a probe into alleged unfair business practices. The investigation follows IndiGo's cancellation of numerous flights, potentially abusing its market dominance and leading to consumer hardships.

On Thursday, shares of InterGlobe Aviation closed nearly 1% lower after the Competition Commission of India (CCI) launched an investigation into alleged unfair business practices by IndiGo.

IndiGo's stock, parented by InterGlobe, experienced a 3.65% drop to Rs 4,782.45 on the BSE before ending at Rs 4,933.95, down 0.60%. At the NSE, it declined by 0.57% to Rs 4,932.20. The CCI's probe comes after massive flight cancellations that caused passenger distress and possible market manipulation.

The CCI, in a detailed 16-page order, cited the potential abuse of IndiGo's dominant market position, limiting consumer access by creating artificial scarcity during peak periods. This alleged conduct could violate Section 4 of the Competition Act, prompting a comprehensive investigation.