Union Minister of State for Corporate Affairs Salman Khurshid said on Monday that the Registrar of Companies would look into violations, if any of the procedures by Rendezvous Sports, the new IPL franchise, and as of now, his Ministry had nothing to do with it.
“If there is any violation [on the part of Kochi team owner, Rendezvous Sport,], it is to be judged by the Registrar of Companies, as they are the ones who monitor companies…Violations, if any, will come to the RoC's notice, and they will inquire and refer to us, if necessary,” he told journalists here.
“There are regulators for everything. We come into the picture only when regulators tell us something. When a filing takes place and we find there is any deficiency in it,” he said, ruling out any suo motu action into the IPL affairs. “We look only at the filing and the appropriate dates of filing, and if we find any deficiency in filing, we take action.”
ED to probe deals
Even as the Income Tax department is probing the financial dealings of the IPL, the Enforcement Directorate will look into the alleged murky international deals.
Official sources said the Mumbai wing of the ED had conducted a discreet inquiry into the finances of Rajasthan Royals in 2008 and had prepared a report of alleged Foreign Exchange Management Act (FEMA) violations.
They said the report, prepared two years ago, will become the foundation of the probe that will cover all the franchises of the tournament.
The Directorate will also work in tandem with the I-T department, which has already initiated its probe, especially into the dealings of IPL Commissioner Lalit Modi. His relatives have stakes in some of the franchises.
Sources said the Kochi team, which too had investors based abroad, would also be brought under the scanner.
The ED comes into the picture because a good share of the foreign funding came routed through tax havens, they said.