BCCI Officials and Lalit Modi recieve major relief on the 2009 FEMA case
The biggest relief from the verdict was for Modi, whom the tribunal called the 'chief architect behind the organization and conduct of IPL-2 in South Africa'.
XtraTime Newsdesk: The Board of Control for Cricket in India (BCCI) and several of its officials have received significant relief in the 2009 FEMA breach case, which included the relocation of Season 2 of the Indian Premier League (IPL) from India to South Africa. The move was prompted by the country's general election.
The SAFEMA Appellate Tribunal either annulled the Enforcement Directorate judgement or decreased the penalty imposed on the Board and its office-bearers at the time-N Srinivasan, MP Pandove and Lalit Modi, the secretary, treasurer and vice-president, respectively, at that time. Modi, of course, was also then chairman of the IPL. The judgment was delivered on July 16.
The biggest relief from the verdict was for Modi, whom the tribunal called the 'chief architect behind the organization and conduct of IPL-2 in South Africa'. “It is an admitted position that the very concept of the Indian Premier League was the brainchild of the Appellant,” the tribunal said, quashing the penalty imposed on Modi.
“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.
Modi welcomed the verdict saying, "“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. 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.”
Modi said his decision to move to South Africa was done under extraordinary circumstances as the general elections made it impossible to host the tournament at home, hence for the survival and viability of the league, it was shifted.
The adjudication processes concluded with the challenged order dated May 31, 2018. According to the ruling, fines were imposed on the Appellant in six of the 11 show-cause notices, totalling INR 10.65 crore. Modi filed six different appeals with the Tribunal, claiming that he was dissatisfied with the application of fines in these notifications.
Srinivasan and Pandove, the BCCI's secretary and treasurer at the time, received two separate sets of punishments. In one example, 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.
