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Domestic passengers to get 75% of ticket cost says the revised DGCA norms.
According to the revised policy, guests should not be permitted to drink alcohol unless served by the cabin crew.
This is the second time in less than a week that the watchdog has taken enforcement action against the airline in connection with unruly passenger behaviour.
The incident happened on an Air India flight from New York to Delhi on November 26, 2022.
The watchdog has also slapped a fine of Rs 3 lakh on Air India's Director of in-flight services for failing to discharge her duties, according to a statement on Friday.
Jyotiraditya Scindia said BJP MP Tejasvi Surya himself reported and apologised for the incident where he accidentally opened the emergency exit of an IndiGo plane last month.
The airline confirmed the incident from last month, but has yet to reveal the identity of the accused.
The airline has been given two weeks time to respond to the show cause notice and based on the response, further action will be initiated.
Under DGCA rules, the airline concerned is responsible for informing the regulator within 12 hours of landing in case of any incident of unruly passengers/passenger rage/passenger misconduct.
In a shocking incident, an inebriated man urinated on a female co-passenger, a senior citizen in her seventies, in the business class of Air India New York-New Delhi flight on November 26 last year.