The Board of Control for Cricket in India (BCCI) and several of its former office-bearers have received significant relief from the Appellate Tribunal under SAFEMA regarding a 2009 FEMA violation case. The legal dispute stemmed from the decision to relocate the second season of the Indian Premier League (IPL) to South Africa, a move necessitated by the general elections held in India at the time.
In a judgment delivered on July 16, the tribunal either quashed or reduced the penalties previously imposed by the Enforcement Directorate. The verdict brought the most substantial relief to Lalit Modi, who served as the vice-president of the BCCI and chairman of the IPL during that period. The tribunal described Modi as the 'chief architect behind the organization and conduct of IPL-2 in South Africa,' stating that the concept of the league was his 'brainchild.' Consequently, the tribunal quashed the penalties imposed on him, noting that he was not in charge of the affairs and was framed without material evidence of his responsibility.
Expressing satisfaction with the outcome, Modi remarked that the tribunal rejected the central premise of the Enforcement Directorate’s case. He highlighted that the court determined the foreign remittances were current account transactions rather than capital account transactions. Furthermore, Modi stated that he was neither responsible for the BCCI's statutory FEMA compliance nor held the financial authority alleged by the authorities. He maintained that he acted in good faith, noting that the successful staging of the 2009 season in South Africa helped the IPL survive and become a major sporting property.
The legal proceedings, which concluded with this verdict, had their origins in an order dated May 31, 2018, where penalties totaling INR 10.65 crore were imposed across six matters. Additionally, the tribunal addressed penalties against former BCCI secretary N Srinivasan and treasurer MP Pandove. In one instance, Srinivasan’s penalty was reduced from INR 1 crore to INR 10 lakh, while Pandove’s penalty was lowered from INR 50 lakh to INR 5 lakh. The penalty against the BCCI was also reduced from INR 4 crore to INR 1 crore. However, the tribunal upheld separate penalties of INR 50 lakh each against Srinivasan and Pandove, finding them responsible for the business conduct of the board in their respective capacities. While the transfer of funds was held to be in contravention of the Act of 1999, the officials had maintained that any lapses were due to an ignorance of regulatory requirements rather than any mala fide intent.
