The Enforcement Directorate (ED) has imposed a fine of about Rs 121 crore on the Board of Control for Cricket in India (BCCI) for alleged forex violations during the second edition of the Indian Premier League which was played in South Africa. In 2009, the tournament had to be shifted from India due to general elections. The then IPL commissioner Lalit Modi has been fined for Rs 10.65 crore while the former BCCI chairman N Srinivasan has been booked for Rs 11.53 crore under Federal Emergency Management Agency (FEMA).
Meanwhile, the ED has levied a sanction of Rs 9.72 crore on former BCCI treasurer M P Pandove and Rs 7 crore on the State Bank of Travancore. The ED was investigating the case for the alleged contravention of the Foreign Exchange Act (FEMA) in transferring over Rs 243 crore out of the country to host the 2009 Indian Premier League edition in South Africa.
The FEMA order stated that this transfer of funds was in alleged violation of the RBI guidelines meant for transferring funds abroad. The order asked the accused to deposit the fine amount in the government exchequer within 45 days time.
The investigation was launched by ED against BCCI and its top officials for alleged foreign exchange violations over the sports body “illegally routing” foreign exchange worth crores of rupees after shifting the IPL to South Africa that year due to elections.
The investigation has been going on since 2009 where the accused have been disputing over who should be held responsible for financial decisions of the BCCI.
Lalit Modi has been under ED lens since the beginning but his demand for cross-examination of top BCCI officials in the case was accepted by the Bombay High Court recently. The BCCI had denied any wrongdoing in the case.