The Enforcement Directorate has issued a show-cause to the Board of Control for Cricket in India for alleged violation of the Foreign Exchange Management Act during the conduct of the Indian Premier League (IPL-II) held in South Africa in 2009.
“The contraventions amount to around Rs. 1,650 crore,” an ED official told The Hindu on Monday.
According to the ED, the BCCI operated a foreign bank account without seeking the approval of the Reserve Bank of India, a requirement under the FEMA of 1999. In another alleged contravention, the BCCI transferred Rs. 250 crore to this bank account through Cricket South Africa.
“The foreign exchange was transferred to this bank account and spent by the BCCI for IPL-II, bypassing the FEMA provisions and thereby evading scrutiny by the RBI and the banks,” the official said. Officials said the BCCI did not repatriate the revenues earned in South Africa.
The ED found that the State Bank of Travancore also failed to discharge its responsibilities in regulating and monitoring these transactions, an ED official said.
The ED has already issued show-cause notices to the former IPL chairperson Lalit Modi, the State Bank of Travancore and its officials, and BCCI officials including the former and present presidents Shashank Manohar and N. Srinivasan.