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The former Chairman of the TATA Indian Premier League (IPL), Lalit Modi, has been proven innocent and cleared of the principal proceedings that arose during the 2009 IPL season for hosting in South Africa. The Appellate Tribunal under SAFEMA removed all the penalties and charges imposed on him.
They also rejected the Enforcement Directorate's claim of mishandling foreign money transfers which were claimed as capital account transactions. The announcement came after 16 years, as it is a huge relief for the Board of Control for Cricket in India (BCCI) and some of its office-bearers in the FEMA violation case of 2009.
Lalit Modi declared innocent
The judgment stated that the penalties that were imposed on Lalit Modi have been ruled out as he was not in charge of any kind of affairs and was framed in the case without any material that showed that he was involved in the case.
“The penalty has been imposed even on Shri Lalit Kumar Modi in ignorance of his position and even suspension. He was not in-charge of the affairs and otherwise he has been framed in the case without any material showing his responsibility. The penalty imposed on Shri Lalit Kumar Modi is wholly erroneous and thus interfered,” the judgment said.
"I was neither responsible"- Lalit Modi on false charges
Lalit Modi stated that the tribunal ruled that the IPL 2009 remittances were current account transactions, not capital account transactions. He also stated that he is happy that the Tribunal found that he is not responsible for BCCI’s statutory FEMA compliance.
Modi welcomed the verdict. “The Tribunal has rejected the central premise on which the Enforcement Directorate’s case against me had been built. It held that the principal foreign remittances relating to the staging of IPL 2009 in South Africa were current account transactions, not capital account transactions, thereby overturning the foundation of the earlier findings.
“The Tribunal also found that I was neither responsible for BCCI’s statutory FEMA compliance nor vested with the financial authority alleged by the Enforcement Directorate, and it has set aside the penalties imposed on me in the principal proceedings.”
N Srinivasan gets major relief as tribunal cuts penalties
Lalit Modi also stated that he is happy and for the past 16 years he has stuck to one position, acted in the best interests of Indian Cricket and the IPL, and has done nothing wrong that can harm the reputation of the country in terms of cricket.
“This marks the conclusion of what has been the single most significant legal matter arising from the 2009 South Africa IPL. For over sixteen years I have consistently maintained one simple position: I acted in good faith, in the best interests of Indian cricket and the IPL, and committed no personal wrongdoing.”
Apart from Lalit Modi, there were two sets of penalties on former BCCI secretary N Srinivasan and former treasurer Pandove. Srinivasan's punishment was lowered from INR 1 crore to INR 10 lakh, while Pandove's penalty of INR 50 lakh was reduced to INR 5 lakh. The penalty imposed on the BCCI was lowered from INR 4 crore to INR 1 crore.
