25th January 2020

To All Members,

Dear Colleagues,

Sub: Regarding Change of Status from Active to Allied of some members

This is with reference to the discussions held during the IATO Annual General Meeting of 30th October 2019 at The Lalit Hotel, New Delhi and during IATO luncheon meeting held on 17th January 2020 at The Le Meridian, New Delhi with regard to change of Status from Active to Allied category of some members due to not renewing their recognition with the Ministry of Tourism, Government of India and various emails sent by Mr. Sanjay Razdan in this regard.    

The reply sent to Mr. Sanjay Razdan on his various emails sent to IATO is placed below along with the attached legal opinions, which are self-explanatory.

The IATO EC is bound to work within the frame work of IATO Memorandum of Association which states conditions for the active members.

To maintain the same,  the EC had taken a the decision to change the status of some members who were not fulfilling the basic requirement for their active membership of renewing their recognition with the Ministry of Tourism, Government of India inspite of the fact that sufficient advance notice was given to them to get their renewal done. 

Later when questioned by few such members on the decision of the EC, we took the legal opinion in writing to clear doubts of the members. (copies attached).

As per contents of both the legal opinions mentioned above, the steps taken by the EC are as per the Memorandum of Association and valid.

At the same time I would also like to mention that we have to take a balanced view. We are pursuing with the Ministry of tourism that there should be some changes in the criteria for recognition of Inbound tour operators in the present scenario, where requirement of qualitied staff and other parameters may be relaxed. But till the time guidelines of Ministry of Tourism are changed, we have to follow the exiting guidelines and IATO Memorandum of Association.

IATO is for the members and by the members. EC is bound to take decisions as per IATO Memorandum of Association, which are in the best interest of IATO and its members to keep IATO image high and maintain quality of active members to the required standard as per IATO Memorandum of Association. 

Thanking you and with best regards,

Sincerely, 

 

Pronab Sarkar

President

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25th January 2020

Dear Mr. Sanjay Razdan,

This is with reference to our trailing email communication with regard to change of membership status of your company M/s. Razdan Travel Service Pvt. Ltd. from Active to Allied.  

In this regard, first of all I would like to draw your attention to our email sent to you on 28th June 2018 wherein, you were advised to get your renewal done for recognition with the Ministry of Tourism Government of India, failing which your membership will be changed to Allied category. Inspite of sending this email on 28th June 2018, your membership status as Active Member was still maintained till 31st March 2019 and your membership status was changed from 1st April 2019 to allied category. Whereas your recognition with the Ministry of Tourism expired on 24th February 2018.    

In response to your queries I would like to mention that IATO has taken legal opinions which are as follows:-

  • Mrs. Anjana Gosain – Advocate Delhi High Court who is on IATO panel on retainership basis – hence no fee paid for her opinion.
  • Mr. M.S. Vinaik – Advocate Delhi High Court – reference Mr. Tony Marwah EC Member on the request of Mr. Rajesh Mudgill, Hony. Secretary – fee paid is Rs. 60000/- as approved by the EC.   
  • First opinion received from Mrs. Anjana Gosain on 23rd May 2019 and 24th January 2020– copies attached.
  • Second opinion received from Mr. M.S. Vinaik – first opinion on 28th December 2019, second opinion on 16th January 2020 and third and final opinion on 23rd January 2020 as per our query. Final opinion received on 23rd January 2020 is attached and abstract is given below:-        

Quote “Following my second reiteration of opinion, you have issued a clarification, which considerably narrows down the query. What you have clarified is that the lack of accreditation with the concerned ministry, would be for lack of the following attributes :

  • Requirement of minimum turnover of foreign exchange of Rs. 25 lakh by inbound tourism operations as per Para 8 (iii)  
  • Requirement of four qualified staff as per para 8 (iv)

In view of this altered query, I would go so far as to state that in the light of this query, which is far more specific, the Executive Committee of IATO, would be justified in downgrading such members, who cease to have the said basic qualifications, would be justified. 

Therefore, in view of the revised and narrower query, I am reversing my earlier opinion 

Yours Truly,
M. S. Vinaik,

Advocate”  

Unquote

As per contents of both the legal opinions mentioned above, the steps taken by the EC are as per the Memorandum of Association and valid.

Further I would like to clarify that the information given by the Hony. Secretary during IATO Luncheon meeting on 17th January 2020 regarding opinion of Mr. M.S. Vinaik is nullified as has been reversed by Mr. M.S. Vinaik.

With regard to decision taken by the Executive Committee and your claim that IATO Memorandum is silent on this. Please note that EC is empowered to take decision as per following clause 13 (b) & (h) of IATO Memorandum of Association:-   

13.    POWERS OF THE EXECUTIVE COMMITTEE

(b)      The decision of the committee shall be taken in the form of a resolution passed by a majority of the members present. In case of an equality of votes on any resolution, the President shall have a casting or second vote.

(h)      To decide upon the membership of the member who may have violated the rules and regulations of this association and /or directive of the Executive Committee of the Association

Accordingly IATO EC had taken a decision by majority of votes that active members who are not renewing their recognition with the Ministry of Tourism Government of India which is the basic requirement for Active Membership, there status should be changed to Allied Category. However, once they get their recognition renewed, they will be again changed to Active Category.

However, to help the members, EC had also decided to remind the members 3 months before the due of renewal and also 3 months additional time is being given to revive their recognition from the Ministry which the IATO Secretariat is following. 

Just for your information, members who have renewed their recognition have been re-instated to active membership and those who have not opted to renew have sent their annual subscription for Allied category and 2 members have withdrawn including Razdan Travel Service Pvt. Ltd. vide your email dated 18th May 2019 given in trailing emails.

Hence, with regard to your email dated 19th January 2020, all your issues are addressed.    

Thanking you,

Sincerely,

Pronab Sarkar

President

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