Tribunal Mandates Digital Collection and Fund Supervision to Curb Mismanagement in Kerala's BOT Tourism Initiative
In a landmark decision aimed at enhancing transparency and accountability, the National Company Law Tribunal (NCLT), Kochi Bench, has issued comprehensive directives to manage and safeguard the financial operations of the Jatayupara Tourism Project, a pioneering Build-Operate-Transfer initiative by the Government of Kerala. Presided over by Shri Vinay Goel, Member (Judicial), the tribunal's order addresses allegations of mismanagement and siphoning of funds.
The judgment arises from two Miscellaneous Applications, MA (C/ACT)/11/KOB/2024 and MA (C/ACT)/13/KOB/2024, filed by P.J. Mathews and other stakeholders, and Jatayupara Tourism Private Limited respectively. These applications sought urgent regulatory measures to oversee the project's financial dealings, following allegations of financial irregularities committed by Respondent No.12, a key figure in the project's management.
Central to the tribunal's decision is the transfer of Rs. 35,83,876.43 from the current account of Respondent No.12 to a State Bank of India (SBI) Common Pool Account, specifically opened for the Jatayupara Tourism Project. This action follows previous orders mandating the deposit of project revenues into a separate account to prevent cash mismanagement.
The tribunal has further mandated the integration of digital payment systems, including Point of Sale (POS) machines and Unified Payments Interface (UPI), to facilitate online revenue collection and minimize cash transactions. This measure is intended to bolster transparency and ensure that all project revenues are accurately accounted for.
The tribunal's directives also include the joint supervision of the SBI Common Pool Account by an NCLT-appointed Administrator and Chartered Accountant, ensuring that all financial activities are closely monitored. These steps are designed to safeguard project funds and comply with tribunal orders until the final adjudication of the main company petition.
The tribunal dismissed objections regarding the maintainability of the applications, affirming their validity under Rule 11 of the NCLT Rules, 2016, and Sections 241 and 242 of the Companies Act, 2013. It emphasized that the applications sought protective measures rather than enforcement of an arbitral award, thus falling within its jurisdiction.
In light of these developments, the NCLT's decision marks a significant step towards restoring financial discipline and accountability within the Jatayupara Tourism Project, addressing stakeholder concerns over fund mismanagement and ensuring compliance with legal and regulatory standards.
Bottom Line:
Directions issued for effective management, supervision, and safeguarding of funds related to the Jatayupara Tourism Project, including transfer of disputed funds to a Common Pool Account, integration of UPI systems, and cessation of cash transactions to ensure transparency and compliance with tribunal orders.
Statutory provision(s): Companies Act, 2013 Sections 241, 242; NCLT Rules, 2016 Rules 11, 32; Arbitration and Conciliation Act, 1996 Section 36
P.J. Mathews v. Jatayupara Tourism Private Ltd, (NCLT)(Kochi Bench) : Law Finder Doc Id # 2833900
