The airline acted after the woman wrote to Tata Group chairman N Chandrasekaran.
A drunk man urinated on a woman co-passenger in the business class of an Air India flight in November and left without facing any action. Weeks after the incident, Air India has filed a case and has recommended that the unruly flier be placed on the no-fly list.
The Directorate General of Civil Aviation has sought a report from the airline into the incident that was revealed after the woman wrote to the group chairman of Air India, N Chandrasekaran.
"We shall take action against those found negligent," said the regulator.
On November 26, the drunk passenger allegedly unzipped and urinated on a co-passenger in her 70s in the business class of an Air India flight from New York to Delhi. The lights had been dimmed after a meal.
After urinating, the man allegedly didn't move until another passenger asked him to leave.
The woman complained to the crew and told them her clothes, shoes and bag were soaked in urine. The crew allegedly gave her a set of clothes and slippers and told her to return to her seat.
After the flight landed in Delhi, the passenger allegedly left without facing any action for his egregious behaviour.
Disappointed at the airline's handling of the incident, the woman wrote to Mr Chandrasekaran the next day.
Air India has now filed a police complaint against the man. "Air India constituted an internal committee and recommended to put the male passenger on the 'no-fly list'. The matter is under a government committee and a decision is awaited," sources said.
The woman reportedly said in her letter that she didn't want to sit on the soiled seat, so she was given a crew seat. After an hour, she was allegedly told by the crew to return to her seat, which was covered with sheets but still reeking of urine. The crew sprayed disinfectant on the seat, she said. When she firmly refused to take the same seat, she was given another crew seat, where she spent the rest of her flight.
The woman alleges she was not given a different seat in the business class even though there were vacant spots.
This is the latest incident of unruly behaviour on a flight.
On December 26, a group of passengers beat up a co-passenger on a Bangkok to Kolkata flight on Thai Smile after he refused to make his seat upright before takeoff. On December 16, a video emerged of a row on an IndiGo flight in which a stewardess is heard telling the passenger, "I am not your servant."