Finally, IRDAI Identifies Sensitive Posts in Compliance with CVC Guidelines
The Insurance Regulatory and Development Authority of India (IRDAI) has finally decided to follow guidelines issued by the Central Vigilance Commission (CVC) and issued order identifying sensitive posts. IRDAI took more than a year to identify sensitive posts, despite a clear guidelines by CVC in August 2018. The circular too seems to have issued after a question was raised in the Rajya Sabha. 
 
Anurag Thakur, minister of state for finance, while responding to a question in Rajya Sabha on Tuesday, says, "IRDAI...vide order dated 26 November 2019 has identified sensitive posts in the departments, which include positions handling registration and renewals of insurance intermediaries viz. corporate agents, insurance brokers, insurance marketing firms, surveyors and loss assessors and third party administrators, and those handling insurance product approvals."
 
Member of Parliament (MO) Javed Ali Khan had asked the about identification of sensitive post by IRDAI to prevent corruption as per the guidelines of CVC issued on 23 August 2018.
 
In its order, IRDAI has identified sensitive post and staff working on these posts for three years, would be rotated to avoid developing vested interests. However, all the posts identified by the insurance regulator are of the rank of deputy general manager (DGM) and below. This means all posts above the DGM level are not sensitive and staffer can continue to occupy it beyond three years. 
 
 
"All the officer or employees working on the above mentioned sensitive posts are to be strictly rotated on completion of three years of holding the post. In case, officer or employees are handling company wise profile, then they should be allocated different companies every three years. In cases, where it is not possible to change the department of an officer or employee, then rotation of portfolio within the department should be done every three years. In all cases, rotation of officers or employees, who have completed five years in the existing position should be done," IRDAI says in its order.   
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    Thomas Cook India buys Thomas Cook brand for Rs 13.9 crore
    Travel services major Thomas Cook (India) Ltd has signed an agreement to acquire the Thomas Cook brand for Rs 13.9 crore for use in India, Sri Lanka and Mauritius markets, said a senior company official.
     
    The company signed an agreement with AlixPartners, Thomas Cook UK's appointed Special Managers, he added.
     
    "The brand valuation was done by our internal team and an external team. Both of them arrived at a similar value," Debasis Nandy, President & Group Chief Financial Officer told IANS over phone from Mumbai.
     
    Thomas Cook (India) was previously contracted to pay an annual brand licence fee of Rs 2 crore to Thomas Cook UK until 2024 for usage of the brand.
     
    The brand license agreement also gave TCIL the right of first refusal to acquire the brand in the event of the Thomas Cook UK Group going into liquidation before 2024.
     
    "I didn't think there was an option till 2024 to reduce the price further even though the right of first refusal was with our company. Waiting till 2024 would have resulted in uncertainty as the UK company was sold to a Chinese company. The assets of the UK company were being sold and cash realised to pay off its creditors. There was also the risk of the brand being sold of to somebody else, Nandy said.
     
    "It was a fairly decent valuation, seven times of times of the annual royalty," he added.
     
    According to him, Thomas Cook (India) now owns the brand and can change the look and feel of the brand.
     
    Refuting the view online companies are eating into Thomas Cook (India) business he pointed out the former largely sell airline tickets and hotel rooms whereas his company sells travel packages.
     
    "We get 30 per cent of our business or about Rs.500 crore from online sales, Nandy added.
     
    Ruling out extending the Thomas Cook brand to other group company's offerings Nandy said the plan now is to consolidate our business and then grow it further.
     
    Queried about resort subsidiary Sterling Holiday Resorts he said it will continue to add five/six resorts per year.
     
    "Sterling Holiday Resorts will largely into asset management and will not buy or build properties of its own. The idea is be light on assets and save on outlay," Nandy said.
     
    He said the travel market is expected to pick up in 2020.
     
    Speaking about the market trend he said, tourists are now opting for short haul trips than going for long haul ones.
     
    The Thomas Cook India Group continues to remain financially strong with cash and bank deposits balances of Rs. 1,088.3 crore of September 30, 2019. On a standalone basis Thomas Cook India is debt free. The Group generates an average annual free cash flow of around Rs. 200 crore.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Ramesh Poapt

    6 days ago

    company lost mkt price quickly. a value buy?!

    UM Lohia: FADA Seeks PMO Intervention To Stop the JV Company’s Exit from India
    After sending legal notice to UM Lohia Two Wheelers Pvt Ltd (UM Lohia), the Federation of Automobile Dealers Associations (FADA) has requested intervention by the prime minister's office (PMO) to stop exit of the joint venture company from India. UM Lohia is a joint venture (JV) between the Lohia group and UM Motorcycles, an American company, which had surreptitiously folded up its operations and closed its warehouse for spare parts within three years after setting up the JV. 
     
    In a statement, FADA says "Auto manufacturer’s shutting shops and exiting India overnight now brings a strong urge to introduce franchisee protection act to safeguard interests of customers, dealers and employees since India aspires to make the country a manufacturing hub with an aim of Make in India."
     
    FADA, which has taken up the cause of the dealers of ‘UM Motorcycles’, whose motorcycles were manufactured and sold in India by had also requested several ministries like the ministry of heavy industries, road transport & highways, commerce & industries and corporate affairs to intervene in the matter.
     
    In October this year, FADA had sent a legal notice to UM Lohia for defrauding dealers. "...to protect the interests of the customers and the dealers, FADA, through its counsel Khaitan & Co, has issued a legal notice to UM Lohia and its management, calling upon them to redress all grievances of dealers relating to the losses suffered by dealers due to actions of UM Lohia and to take steps to ensure the maintenance and servicing of motorcycles already sold in accordance with the warranty terms and law," the national body of automobile retail industry had said at that time. (Read: FADA Sends Legal Notice to UM Lohia and Promoters for Defrauding Dealers)
     
    However, FADA says it did not receive any response from UM Lohia as well as promoters and management of the company.  
     
    In a statement, the dealers association says, "Looking at the plight of the customers who are not getting proper service and spares because of carelessness of the owners and dealers who are aggrieved by the dishonesty and fraud on part of the management and promoters of UM Lohia, including founders Ayush Kumar Lohia and Jose Miguel Villegas, FADA has taken up this issue and is requesting intervention of the PMO and allied ministries."
     
    "Due to the plagued relationship between the owners, it has caused huge losses to dealers and has exposed them to unwarranted litigation from customers for whom, dealers are the face of the company. Apart from the business losses which the dealers are facing with, it has also resulted in creating a bad name in their society and has therefore added to their plight and mental harassment," FADA added.
     
    In 2016, the Lohia group has set up the JV with UM Motorcycles to manufacture and sell in India ‘American’ style motorcycles under the brand of ‘UM Motorcycles’.    
     
    According to FADA, the woes of dealers began the moment the JV entered the market with its motorcycles. "It soon came to light that the so called ‘American’ motorcycles were actually being assembled from Chinese parts at UM Lohia’s manufacturing plant at Kashipur in Uttar Pradesh. Consumer interest immediately dipped as no one wanted to purchase cheap Chinese replicas of ‘American’ motorcycles. The brand lost its value, and with it the investments of dealers, who were now holding a product few desired."
     
     
    According to FADA, at a time when the entire automobile industry in India was moving towards BS-IV emission standards, UM Lohia chose to enter the market by introducing BS-III motorcycles in the second half of 2016, even though the ban on sale of BS-III vehicles was to take effect in a few months from April 2017. As soon as the ban on BS-III vehicles came into effect, the dealers of UM Lohia were left with a huge inventory of BS-III motorcycles which was not only undesired by customers but now also legally unsellable.
     
    UM Lohia, however, refused to compensate dealers for this unsellable stock and also refused to return the advance payments given by many dealers.
     
    "It is only after much cajoling that UM Lohia even acknowledged the problem. Even then, instead of buying back the BS-III motorcycles from the dealers and returning their advances, UM Lohia came up with the scheme to sell BS-IV motorcycles to dealers in lieu of their stock of BS-III motorcycles and advances. However, the BS-IV motorcycles supplied by UM Lohia were entirely unfit to ply on roads with several basic components such as EFI module controller and gear breaking down within few days of use of the motorcycles by the customers," FADA says.
     
    To make matters worse, FADA says, UM Lohia has now surreptitiously folded up its operations and closed its warehouse for spare parts. This makes it impossible for dealers to service the warranty claims on defective UM motorcycles. As a result, many dealers have been exposed to litigation from customers of UM motorcycles.
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    COMMENTS

    Dr.Dhananjaya Bhupathi

    1 week ago

    https://www.moneylife.in/article/um-lohia-fada-seeks-pmo-intervention-to-stop-the-jv-companys-exit-from-india/58812.html
    1. It is fine. Moneylife is expected to contact JM Company’s representative[s] in India; so that the news article is comprehensive.
    2. https://www.youtube.com/watch?v=4Si8U02s8cQ.
    3. SATYAMAEVA JAYATHE!!!

    Nakul Kumar Reddy

    1 week ago

    Who the hell is he (China team),to tell about this issue .
    Fraud people ,they looting public money.
    Need to file more cases , under non bailable sections.

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