Travel Guru — Booking not available despite confirmation

Address:	Mumbai City, Maharashtra, 400081
Website:	Travelguru.com

I don't understand how websites like travelguru still retain their licence to do business despite rejecting bookings paid and confirmed way ahead. I had an uncle in Australia booking through travel guru, got a confirmation and then 3 days before the date, advise us there are no rooms available! Isn't that a clear violation of their travel agent licence?