Organiser Performance & Escrow Policy

Module: Utsav Pass™
Document Type: Hybrid — Plain English + Legal Reinforcement
Trademark: Utsav Pass™ is a trademark of MyMahotsav Futuretech Ltd
Jurisdictions: Global (with jurisdictional addendums)
Version: 1.0
Effective Date: 24th February 2026

PART A: PLAIN ENGLISH SUMMARY #

How Funds Are Held and Released to Organizers #

Utsav Pass™ protects both organizers and ticket buyers through our escrow-based payment system. Ticket funds are held securely and only released when conditions are met.

The Simple Truth #

• Your ticket money is protected: All funds go into a segregated Escrow Account—separate from Utsav Pass™ operating money.

• Organizers don’t get paid immediately: Funds are generally held until after the event (or as agreed).

• This protects everyone: Buyers know funds are safe if event is cancelled. Organizers know funds are available when they deliver.

• Release conditions vary: Some organizers qualify for early release based on track record.

• Refunds come from escrow: If refunds are due, they’re paid from held funds before organizer payout.

• Performance matters: Organizers who consistently deliver successfully may qualify for better terms.

PART B: LEGAL TERMS AND CONDITIONS #

1. Escrow Account STRUCTURE #

1.1 Escrow Principles #

1.1.1 All ticket sale proceeds are held in one or more segregated escrow accounts operated by Utsav Pass™.

1.1.2 Key features of the escrow arrangement:

• Funds are held separate from Utsav Pass™ operating accounts

• No commingling with company funds

• Protected in case of Utsav Pass™ insolvency (to extent provided by law)

• Interest earned (if any) retained by Utsav Pass™

1.1.3 Utsav Pass™ acts as a limited agent for payment collection and disbursement.

1.2 Trust Status #

1.2.1 In applicable jurisdictions (UK, certain common law countries), funds are held on statutory trust for the benefit of:

• Ticket buyers (until event occurs or refunds due)

• Organizers (after event completion)

1.2.2 This means:

• Funds are not available to Utsav Pass™ creditors

• If Utsav Pass™ becomes insolvent, funds are protected

• Trustees (administrators) would distribute funds per these terms

2. FUND HOLDING PERIODS #

2.1 Standard Holding Period #

2.1.1 For most organizers, funds are held until:

• The event date has passed; AND

• No unresolved disputes; AND

• No chargeback alerts; AND

• Organizer has complied with all requirements

2.1.2 Disbursement occurs within [5-7 business days] after the event date.

2.2 Early Release (Trusted Organizers) #

2.2.1 Organizers with established track records may qualify for early release:

2.2.2 Utsav Pass™ may require:

• Security deposit or bond

• Personal guarantee

• Insurance proof

• Verified bank account

2.3 Extended Hold (High-Risk Organizers) #

2.3.1 For new or high-risk organizers, funds may be held:

• Until [14-30 days] after event

• Until all refund periods expire

• Until chargeback risk window passes

• Subject to reserve hold (percentage held longer)

2.3.2 High-risk indicators:

• First-time organizer

• High-value tickets

• Short lead time to event

• Vague event details

• Negative external reviews

2.4 Rolling Reserves #

2.4.1 Utsav Pass™ may establish a rolling reserve for certain organizers:

• [10-20%] of each payout held for [90] days

• Covers chargebacks and refunds

• Released after reserve period if no issues

3. DISBURSEMENT CONDITIONS #

3.1 Pre-Disbursement Checklist #

Before funds are released to Organizer, Utsav Pass™ verifies:

• Event date has passed

• No unresolved refund requests

• No pending chargebacks

• Organizer has provided post-event update (if required)

• No fraud indicators

• No court orders or legal holds

• Organizer bank details verified

3.2 Disbursement Methods #

3.3 Disbursement Fees #

4. HOLDS, FREEZES, AND WITHHOLDING #

4.1 When Funds May Be Held #

Utsav Pass™ may withhold funds if:

4.2 Notification of Hold #

4.2.1 If funds are held beyond standard timeline:

• Organizer notified by email

• Reason provided (subject to legal restrictions)

• Estimated resolution timeline

4.2.2 Utsav Pass™ will work diligently to resolve holds promptly.

4.3 Setoff Rights #

4.3.1 Utsav Pass™ may setoff against organizer funds:

• Refunds owed to ticket buyers

• Chargeback amounts

• Fees owed

• Penalties for breach

• Legal costs indemnified

4.3.2 Setoff exercised before disbursement.

5. PERFORMANCE STANDARDS #

5.1 Organizer Performance Metrics #

Utsav Pass™ tracks:

5.2 Performance Tiers #

5.3 Performance Improvement Plan #

5.3.1 Organizers below standards may be placed on:

• Monitoring: 30-day observation period

• Probation: 90-day period with enhanced oversight

• Suspension: Until issues resolved

5.3.2 Failure to improve may result in account termination.

6. REFUNDS FROM ESCROW #

6.1 Refund Priority #

When refunds are due:

1. Funds deducted from event proceeds in escrow

2. If insufficient, deducted from organizer’s other events

3. If still insufficient, organizer must pay差额

4. Utsav Pass™ may advance refunds and seek recovery

6.2 Refund Processing #

6.2.1 Refunds are paid from escrow before organizer disbursement.

6.2.2 If event proceeds are insufficient to cover refunds:

• Organizer must reimburse Utsav Pass™ within [14] days

• Failure to pay results in collections and legal action

6.3 Negative Balance #

If an organizer’s account goes negative (refunds > revenue):

• New ticket sales applied to negative balance

• Organizer must clear balance before new events

• Collection agency referral after [90] days

7. CHARGEBACKS #

7.1 Chargeback Liability #

7.1.1 Organizer is fully liable for all chargebacks:

• Chargeback amount

• Chargeback fees (typically £15-25 / ₹1,500-2,500)

• Administrative fees

7.1.2 Chargebacks deducted from:

• Current balance

• Future payouts

• Other events by same organizer

7.2 Chargeback Representment #

7.2.1 Utsav Pass™ may contest chargebacks on organizer’s behalf if:

• Valid ticket was issued

• Event occurred as described

• Refund was already issued

• Buyer authorized transaction

7.2.2 Organizer must provide:

• Proof of delivery (entry records)

• Communication with buyer

• Policy disclosures

7.3 Excessive Chargebacks #

Organizers with chargeback rates > [1%] may:

• Have funds held longer

• Be required to post bond

• Be suspended from platform

8. INSOLVENCY AND BANKRUPTCY #

8.1 Organizer Insolvency #

If an Organizer becomes insolvent before an event:

• Funds held in escrow remain protected

• Refunds to ticket buyers prioritized

• Organizer’s creditors have no claim to escrow funds

• Utsav Pass™ will manage refund process

8.2 Utsav Pass™ Insolvency #

8.2.1 In the unlikely event of Utsav Pass™ insolvency:

• Escrow funds are held on trust (in applicable jurisdictions)

• Not available to general creditors

• Administrators will distribute to ticket buyers and organizers per these terms

• Ticket buyers entitled to refunds for unfulfilled events

8.2.2 Utsav Pass™ maintains records to enable such distribution.

9. DISPUTE RESOLUTION #

9.1 Disputes regarding fund holding or release:

1. First: Organizer contacts Utsav Pass™ support

2. Second: Escalation to Compliance Manager

3. Third: Independent mediation

4. Fourth: Legal action per governing law

9.2 During dispute, funds remain in escrow until resolved.

PART C: JURISDICTION-SPECIFIC ADDENDUMS #

INDIA ADDENDUM #

Escrow Under Indian Law:

• Escrow arrangements recognized under Indian Contract Act

• RBI guidelines on collection accounts apply

• Payment aggregators must comply with RBI circular on escrow

Insolvency Protection:

• Under IBC, client funds held in trust may be protected

• Legal precedent supports segregation

Tax Deduction at Source:

• TDS applicable on organizer payouts under Section 194C/194J

• TDS certificates to be provided

UK ADDENDUM #

Client Money Rules:

• FCA CASS rules apply if Utsav Pass™ holds client money

• Statutory trust protection

• Monthly reconciliation required

Insolvency Protection:

• Funds held on trust protected from liquidators

• Administrators must distribute per trust terms

US ADDENDUM #

State Money Transmitter Laws:

• Holding funds may constitute money transmission

• Utsav Pass™ uses licensed partners or complies with exemptions

Bankruptcy Protection:

• Escrow funds may be protected under Bankruptcy Code

• Preference period risks if organizer pays refunds before bankruptcy

EU ADDENDUM #

Payment Services Directive:

• Escrow arrangements may require authorization

• Utsav Pass™ uses authorized payment partners

Insolvency Protection:

• Varies by member state; some have client money protection

PART D: ENTERPRISE INTERNAL MANUAL #

For Utsav Pass™ Finance & Risk Teams #

A. Disbursement Approval Matrix #

B. Reserve Calculation Table #

C. Negative Balance Recovery Process #

1. Day 0: Negative balance occurs

2. Day 7: Email notice to organizer

3. Day 14: Second notice, payment deadline

4. Day 30: Payment plan offered

5. Day 60: Collection agency referral

6. Day 90: Legal action consideration