Aviation regulator DGCA has imposed a fine of Rs 10 lakh on Air India for denying boarding to passengers holding valid tickets and thereafter not providing mandatory compensation to them.

"After that a series of checks were carried out by DGCA and during our surveillance at Bengaluru, Hyderabad and Delhi, there were specific instances, in the case of Air India - where the regulation (regarding compensation to passengers) is not being followed and therefore, a show cause notice was issued to the airline and also a personal hearing was afforded," the Directorate General of Civil Aviation (DGCA) said in a statement.

According to the regulator, Air India may not have a policy in this regard and does not pay compensation to the passengers.

"To say the least, it is a matter of serious concern and unacceptable. In the specific cases detailed in the show cause notice, after going through AI submissions, as part of enforcement action, the competent authority has levied a penalty of Rs. 10 lakh," it noted.

"In addition, the Airline has been advised to immediately put the systems in place to resolve the issue - failing which further action shall be taken by DGCA," it added.