ED slaps BCCI with Rs 131.5cr penalty

Mumbai: The Enforcement Directorate (ED) on Thursday slapped a penalty of over Rs 131.5 crore collectively on the Board of Control for Cricket in India (BCCI), its former chief N. Srinivasan, former IPL commissioner Lalit Modi and a few other former office bearers for alleged violation of the Foreign Exchange Management Act (FEMA) during the T-20 IPL season 2009 after completing the adjudication process in the case.

The ED had recorded statements of the concerned persons after Modi filed a writ petition before the Bombay high court seeking a probe into the alleged fund transfer to South Africa, where the 2009 edition of the tournament was held. ED officials said that multiple show cause notices were issued to BCCI and its erstwhile office bearers, including Modi. The notices related to various contraventions of FEMA involving Rs 243 crore, relating to the conduct of IPL-2 tournament in 2009.

Investigation revealed that the BCCI and its concerned officials did not open any bank account in South Africa to meet the expenses for the conduct of IPL-2 but instead transferred huge amounts of foreign exchange to Cricket South Africa (CSA). This money was routed into another dedicated bank account opened by CSA in the name of CSA-IPL.

“Later, by the virtue of an agreement between BCCI and CSA, BCCI exercised full control over the operation of this foreign bank account thereby avoided scrutiny of these expenses by any Indian authority,” said a senior ED officer.

The adjudicating authority in ED, upon conclusion of adjudicating proceedings issued the adjudication order with respect to a number of contraventions of FEMA and imposed penalties on those who were guilty.

The BCCI has been slapped with Rs 82.66 correct fine, whereas Srinivasan, the then secretary BCCI, will have to pay Rs 11.53 crore. Modi, whose writ led to the probe, was also found guilty. The then IPL chairman will now have to pay a penalty of Rs 10.65 crore.

Among others, M.P. Pandove, the then treasurer of the BCCI has also been found guilty and been asked to pay Rs 9.72 crore. The State Bank of Travancore, now merged with SBI, will have to pay Rs 7 crore and the then chief manager a penalty of Rs 10 lakh.

The adjudicating process has now been completed and the concerned persons have been sent the notice to adhere to the adjudication.  The order asked the accused to deposit the fine amount in the government exchequer within 45 days.