​Now, 40% commission row hits Karnataka tourism department

The allegation of 40 per cent commission has hit the tourism department with a complaint to the chief minister accusing the minister of deliberately delaying awarding of tender to harass a company that has won the bid to conduct river rafting services on Kali river in Dandeli.

In January, the Jungle Lodges and Resorts (JLR) invited bids from agencies to conduct water rafting activity on Kali river.

As per the conditions, the tender was to be awarded to the company that offers the highest share of revenue earned through tickets sold to tourists for river rafting.

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River rafting tickets are priced at Rs 1,350 per head. As per the officials, over 150 tourists buy the tickets per day.

Sources said the contractor who had bagged the previous tender by offering to give about 50 per cent of its share has been given an extension to operate till the new tender is awarded.

The total revenue from the activity is estimated at about Rs 20 crore.

Three companies took part in the tender process and offered to share 64 per cent, 52 per cent and 50 per cent of the revenue.

AllGoTrip Hospitality Pvt Ltd, which offered to share 64 per cent of the revenue, was finalised as the successful bidder.

On March 25, JLR wrote to the company extending the licence to carry out rafting activities.

“You are requested to execute an agreement on a stamp paper of Rs 200 to effect the above contract,” the letter by JLR managing director said.

Sources in the department said the company executed the agreement within the next few days.

“However, JLR didn’t sign the agreement. As the holiday season was half over, the company was keen to do it fast. But officials were pressured not to sign the agreement,” the sources said.

Deepak C N, state general secretary of Karnataka Rashtra Samithi, said that the case shows that the 40 per cent commission scam has seeped into the tourism department.

“JLR has not signed the agreement because Tourism Minister Anand Singh has given instructions to hold up the file. Blocking the tender and extending the period of the existing company which shares less revenue with JLR during the holiday season has led to suspicions. It is clear that the minister is directly involved,” Deepak stated in a complaint to the chief minister.

DH reached out to Minister for Tourism, Environment and Ecology Anand Singh who said he has given oral instructions to hold the file.

“I have stopped the tender process. There is a lot of politics in the tender. We have earned double the profit when JLR conducted rafting activities. If we outsource it, our earnings come down. When we conduct it, our earnings go up 10 times. I heard complaints from localites. I didn’t know rafting involved so much revenue. JLR conducted rafting for nine months and earned profits. Is it wrong to verify this? Let those making the allegation answer the question,” he said.

When asked, Deepak questioned the minister’s decision.

“If a minister is convinced that tender should not be awarded and rafting should be conducted in-house, let him give it in writing. How come he is giving oral instructions for a month? Government transactions cannot happen based on oral instructions,” he noted.

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