Indigo Airlines — No show tax / fee

My friend missed a flight from Varanasi to Delhi on Dec 21st. We had prepaid for extra baggage and total trip cost (2 way) was 11.400 rupees. Booking reference: MFTUFE After missing the flight he took an AirIndia flight to be able to catch the next flight to Dubai. Information from Indigo is that there is a 2.500 rupees cancelation / no show tax per segment and that the pre paid baggage 10kg is not refundable. In the end, they will just refund 850 rupees out of the almost 6.000 from that travel segment. I find this absurd, not to be able to get a refund, specially on the pre paid baggage allowance. They should charge a fee, like any other company, but not a fee that absurd. People should know that when they travel to India as I haven't seen that policy from any other airline.
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