The operational bank accounts of the Andaman Association of Tour Operators (AATO) have been frozen following the issuance of a legal notice alleging discrepancies in the use of association funds, according to people familiar with the development.
Sources said the notice raises concerns over the alleged utilisation of AATO’s funds for personal purposes by a few members. It reportedly flags financial transactions that are claimed to be inconsistent with the stated objectives and collective interests of the association. In view of the allegations, the accounts were frozen to prevent further financial activity while the matter is examined.
Bandhan Bank, which serves as AATO’s banking partner, confirmed the freezing of the accounts. A senior bank official acknowledged that the step was taken after receipt of the legal notice and in accordance with due process.
The move has temporarily disrupted the day-to-day financial functioning of AATO, an umbrella body representing tour operators and tourism stakeholders in the Andaman and Nicobar Islands. People aware of the situation said the measure was intended to safeguard the association’s funds and ensure transparency during the inquiry period.
AATO is understood to be initiating an internal review to ascertain the facts surrounding the allegations. The process is expected to examine financial records, expenditure patterns and authorisations linked to the disputed transactions. Members named in the legal notice are likely to be asked to submit explanations and supporting documents as part of the exercise.
While specific details of the alleged discrepancies have not been officially disclosed, the development has triggered concern among tourism operators, given AATO’s role in representing collective industry interests and acting as a bridge between the sector and the administration. Some members have reportedly called for a transparent and time-bound inquiry to protect the credibility of the association and enable the early restoration of normal operations.
No official statement has been issued so far by AATO on the freezing of its bank accounts or the allegations cited in the legal notice. Sources said the association may clarify its position once preliminary findings of the internal review are available. Further action is expected to depend on the outcome of the inquiry and any subsequent legal or administrative directions.
