ED Slaps Hefty Fine on BCCI, N Srinivasan and Lalit Modi for Contravention of FEMA

A massive penalty was slapped on the world’s richest cricket body Board of Control of Cricket in India (BCCI) and its former Chairman N. Srinivasan and evading Indian Premier League (IPL) commissioner, Lalit Modi, and others, by the Enforcement Directorate (ED).

This is due to the alleged violation of the Foreign Exchange Management Act (FEMA) during the second edition of IPL, back in 2009, held in South Africa.

Pertinently, that time around, South Africa hosted the professional domestic league owing to the general elections in the country.

According to the officials, a fine of INR 121.56 crore was levied as a fine for the alleged contravention of FEMA during the transaction of INR 243 crore to South Africa to host IPL 2009.

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BCCI faces a fine of INR 82.66 crore, while N Srinivasan is slapped with a penalty of INR 11.53 crore. Meanwhile, Lalit Modi is charged INR 10.65 crore.

Transfer made to CSA:

The others fined was the then BCCI treasurer M.P. Pandove for a sum of INR 9.72 crore. Also, the Chief Manager of SBI Travancore is fined for a sum of INR 10 lakh, whereas, SBT faces a charge of INR seven crore.

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The agency officials suggested that the investigation revealed that INR 243 crore was transferred to the Cricket South Africa (CSA) in 2009.

Concluding, this money got routed into another dedicated bank account opened by CSA in the name of CSA-IPL.

“Thereafter, by 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,” the official stated according to Wah Cricket.