BCCI and Lalit Modi Get Major Relief in IPL 2009 FEMA Case
The Board of Control for Cricket in India (BCCI) and several of its former office-bearers have received significant relief in the long-running IPL 2009 FEMA case, with the Appellate Tribunal under SAFEMA either setting aside or reducing multiple penalties imposed by the Enforcement Directorate (ED).
The case relates to the second season of the Indian Premier League (IPL), which was shifted from India to South Africa in 2009 due to the country’s general elections.
Tribunal Quashes Penalty Against Lalit Modi
One of the biggest outcomes of the ruling is the complete relief granted to former IPL chairman Lalit Modi.
The tribunal observed that Modi was the driving force behind organising IPL 2009 in South Africa but found no material to establish that he was responsible for the alleged FEMA violations or the BCCI’s statutory compliance obligations.
As a result, the penalties imposed on Modi in the main proceedings were set aside.
Following the verdict, Modi said the ruling had rejected the central basis of the Enforcement Directorate’s case and reiterated that he had always acted in the best interests of Indian cricket and the IPL.
Relief for BCCI and Former Officials
The tribunal also reduced penalties imposed on the BCCI and two of its former office-bearers.
The penalty on the BCCI was reduced from ₹4 crore to ₹1 crore.
Former BCCI secretary N. Srinivasan saw one penalty reduced from ₹1 crore to ₹10 lakh, while former treasurer M.P. Pandove had one penalty reduced from ₹50 lakh to ₹5 lakh.
However, the tribunal upheld another penalty of ₹50 lakh each on Srinivasan and Pandove, stating that both officials were responsible for the administration of the BCCI during the period in question.
Case Linked to IPL 2009 Shift to South Africa
The case dates back to 2009 when the IPL was relocated to South Africa after security concerns arising from India’s general elections.
The Enforcement Directorate alleged that large foreign exchange remittances made for organising the tournament overseas were carried out without prior approval from the Reserve Bank of India (RBI), amounting to violations under the Foreign Exchange Management Act (FEMA).
The primary allegation involved the transfer of nearly USD 49.86 million to entities outside India.
BCCI’s Stand
Throughout the proceedings, the BCCI maintained that any procedural lapses were due to a lack of clarity regarding regulatory requirements rather than any deliberate wrongdoing or dishonest intent.
The tribunal accepted several of these arguments while providing relief in multiple appeals.
A Long Legal Battle Nears Its End
The original Enforcement Directorate order was passed in May 2018, nearly nine years after the events of IPL 2009.
With the latest tribunal ruling delivered on July 16, the case has reached a significant milestone, offering major relief to the BCCI and former officials after years of legal proceedings.
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