In a statement, IndiGo said the aircraft operating flight 6E2131 from Delhi to Bengaluru experienced an engine stall during the take-off roll.
According to sources, 16 passengers experienced difficulties after inhaling the smoke and some suffered minor bruises at the time of evacuation.
The airline had put the passenger on "no flying list" for 15 days in February.
The DGCA had last month countered media reports that claimed that Adam Harry -- a transman from Kerala -- has been denied permission by the regulator to get a commercial pilot license.
A senior DGCA official said that all the airlines have been informed about the decision on Wednesday.
DGCA takes enforcement action in accordance with laid down procedures which may consist of warning, suspension, cancellation including imposition of financial penalty to the personnel involved/airline.
The order is following at least eight incidents of technical malfunction in its aircraft since June 19.
The regulator had proposed the aforementioned regulations on June 3, six days after it had imposed a fine of Rs 5 lakh on IndiGo for denying boarding to a disabled boy at Ranchi airport.
Harry is now worried about the aviation regulator's clause that flying duties cannot be assigned to those on hormonal therapy.
DGCA said that media reports on Adam being denied permission by the regulator to get a commercial pilot licence were not true.