SDF demands clarity on TSD Fund diversion to private entity, demands immediate discontinuation

GANGTOK, : The Sikkim Democratic Front (SDF) has expressed grave concern over the collection, management, and utilisation of the Tourism Sustainable Development (TSD) Fund by the Tourism department under the SKM government.

On January 4, the SDF publicly raised serious issues through social media regarding the functioning of the Atithi GIS / Atithi App, through which the TSD Fund is collected. As notified under the Sikkim Registration of Tourist Trade Act, the TSD Fund was established to strengthen tourism infrastructure, preserve heritage, support capacity building, and develop tourism-allied services across Sikkim. The fund is collected by levying Rs 50 per tourist entering the State.

While tourism stakeholders - particularly hotels and homestays - have reported persistent operational difficulties in data submission and fund collection through the app, the most alarming issue is the fact that 40% of the TSD Fund is being paid to a private company, Visito Ventures, a Kolkata-based firm incorporated only in 2021, alleged the SDF in a press statement on Friday.

On January 8, the Tourism department issued a video clarification addressing certain technical concerns. However, the department completely failed to address the most serious issue - the diversion of a substantial portion of public funds, collected in the name of sustainable tourism, to a private entity, maintained SDF women’s wing in-charge Komal Chamling.

The SDF demanded clear and immediate answers from the Tourism department and the SKM government on various questions. The party contended that Visito Ventures was engaged to develop the software and GIS infrastructure for the Atithi App, and such services are ordinarily compensated through a clearly defined contractual fee. On what legal or policy basis is Visito Ventures being allotted 40% of the TSD Fund collected from tourists?, said the SDF.

Komal Chamling also asked about the exact flow of funds collected through the Atithi App, and whether these funds first credited to the Tourism department’s account, or they are directly transferred to Visito Ventures.

The SDF women’s wing in-charge further enquired whether any tender or competitive bidding process followed in the selection of Visito Ventures as the service provider. If so, the details must be disclosed immediately, she said.

“Why was a private entity engaged when the State’s own IT department could have developed and managed the GIS system? What justified bypassing in-house technical capacity in favour of an external company?”

These unanswered questions point to gross financial mismanagement and the possible misuse of public funds by the SKM Government, alleged the SDF. The party demanded the SKM government to immediately place all agreements, contracts, and revenue-sharing arrangements with Visito Ventures in the public domain

The SDF further demanded disclosure of the complete financial trail of the TSD Fund, including collection, allocation, and expenditure, besides a clear explanation of the legal and policy basis for revenue-sharing from a statutory public fund

“Furthermore, the collection of the TSD Fund is causing severe difficulties for tourism stakeholders and has also become a nuisance for visitors, thereby damaging the image of Sikkim beyond its borders. Several hotel and tourism associations have already formally conveyed their concerns to the Tourism department,” said Komal.

“These problems far outweigh any claimed benefits of the TSD Fund, especially when a substantial portion of the revenue is being diverted to a private company. It must also be noted that the Tourism department has other legitimate avenues for mobilising funds to support tourism infrastructure, heritage, and capacity building. In light of these facts, the Sikkim Democratic Front demands the immediate discontinuation of the TSD Fund in its present form,” said the SDF women’s wing in-charge.