GoAir — cancellation amount is too high for a common citizen

Address:	Hyderabad, Andhra Pradesh, 50032
Website:	Goair.in

Hi,
I am aditya mohanty. I have booked flight for 3 members from bhubaneswar to hyderabad which was required to cancel on the next moment for some certain reason. The flight costed me 5500 approx. But when i was canelling the ticket i got to know only rs.1086 will be refunded. I don't understand what is the reason they are charging so much. Can the airline explain their losses which caused them to deduct this much amount of money.. Does our government has no such rules to restrict these kind of loots done by these airlines.
Please suggest.