BCCI Chief N. Srinivasan: Rs. 88.48 crore
Former IPL Commissioner Lalit Modi: Rs. 88.48 crore
Former BCCI Treasurer M.P. Pandove: Rs. 55.49 crore
That’s a listing that the BCCI chief would be hoping is best forgotten. That’s the extent of foreign exchange violations each of these once powerful men from cricket board is personally accused of, in show-cause notices issued by the Enforcement Directorate. While some of these numbers did find their way into the media in 2011, new complications seem to be arising around them.
The alleged transgression involves almost Rs. 88.48 crore that the BCCI paid as “consultancy fees” to the U.K.-based International Management Group (IMG), a global sports management company hired to help organise the IPL.
The ED has argued that the overseas payments made between 2007 and 2010 went against the Foreign Exchange Management Act (FEMA) because they did not have RBI permission. The rules do not allow payments over $ 10 lakh per project for any consultancy service outside India without RBI clearance. The breach of the FEMA carries major penalties — up to three times the amount of violation.
The ED’s case is that these officials were “aware of the nature of transactions between the BCCI and IMG (UK).” As senior officials of the cricket body, they were “under legal obligation to observe the law.” While Mr. Modi did not respond to the ED summons, Mr. Srinivasan has admitted in his response that RBI permission was not taken for the transactions.
