New Delhi: Financial irregularities allegedly committed in the conduct of IPL’s season 2 in South Africa in AprMay 2009 have come back to haunt the Board of Control for Cricket in India ( BCCI ) with then IPL chairman Lalit Modi urging the Supreme Court ask the cricket board to pay Rs 10 crore penalty on his behalf to the Enforcement Directorate (ED). Modi has blamed the board for all its decisions and liabilities related to the league.
IPL-2 was organised in South Africa in Apr-May 2009 (concluded on May 24) after the Union home ministry, citing Lok Sabha polls expressed its inability to provide security for the T-20 contests across the country.
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The ED, during an investigation found financial irregularities in the conduct of the IPL-2, and claimed that BCCI and its office bearers violated foreign exchange rules and carried out transactions without informing the RBI. Though a case of FEMA violation was filed in Nov 2011, matters rested there until April 2015 when ED decided to start the adjudicating proceedings, and 11 notices were served to BCCI and its officials for personal hearings.
In the show cause notices, ED accused BCCI of violating RBI guidelines and FEMA rules by remitting Rs 243 crore to Cricket South Africa (CSA), allegedly without the required permission from the central banker. These remittances were made by BCCI to CSA to “meet the expenses incurred by them on behalf of BCCI for the conduct of IPL” from its bank account at State Bank of Travancore, Jaipur branch.
“The requisite instructions for the transfer of funds for first two remittances were given by BCCI to their bank on March 28, 2009, which was prior to the signing of the agreement with CSA. Similarly, the last two remittances were made after the conclusion of the tournament, out of which, the last remittance of $1,03,62,799 was made as late as 15 months after the conclusion of the tournament,” adjudicating authority of FEMA noted.
The ED probe further revealed payments of Rs 44 crore by BCCI which remained “unaccounted and unexplained by BCCI” resulting in imposition of penalty. These payments were made to an alleged ‘proxy’ account maintained by the BCCI in SA in violation of FEMA rules, according to the case proceedings.
IPL-2 was organised in South Africa in Apr-May 2009 (concluded on May 24) after the Union home ministry, citing Lok Sabha polls expressed its inability to provide security for the T-20 contests across the country.
Go Beyond The Boundary with our YouTube channel.
The ED, during an investigation found financial irregularities in the conduct of the IPL-2, and claimed that BCCI and its office bearers violated foreign exchange rules and carried out transactions without informing the RBI. Though a case of FEMA violation was filed in Nov 2011, matters rested there until April 2015 when ED decided to start the adjudicating proceedings, and 11 notices were served to BCCI and its officials for personal hearings.
In the show cause notices, ED accused BCCI of violating RBI guidelines and FEMA rules by remitting Rs 243 crore to Cricket South Africa (CSA), allegedly without the required permission from the central banker. These remittances were made by BCCI to CSA to “meet the expenses incurred by them on behalf of BCCI for the conduct of IPL” from its bank account at State Bank of Travancore, Jaipur branch.
“The requisite instructions for the transfer of funds for first two remittances were given by BCCI to their bank on March 28, 2009, which was prior to the signing of the agreement with CSA. Similarly, the last two remittances were made after the conclusion of the tournament, out of which, the last remittance of $1,03,62,799 was made as late as 15 months after the conclusion of the tournament,” adjudicating authority of FEMA noted.
The ED probe further revealed payments of Rs 44 crore by BCCI which remained “unaccounted and unexplained by BCCI” resulting in imposition of penalty. These payments were made to an alleged ‘proxy’ account maintained by the BCCI in SA in violation of FEMA rules, according to the case proceedings.
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