Is Lalit Modi Demanding BCCI to Cover His FEMA Penalty?
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Synopsis
In a significant legal move, former IPL head Lalit Modi is turning to the Supreme Court to compel the BCCI to cover a hefty penalty imposed by the ED. This case opens up discussions on governance and accountability within the cricketing body. Will the BCCI step up to indemnify its officials?
Key Takeaways
- Lalit Modi has filed a petition in the Supreme Court against the BCCI.
- The penalty imposed by the ED is Rs 10.65 crore.
- The Bombay High Court previously dismissed Modi's petition.
- The BCCI is alleged to have treated some officials preferentially.
- Modi has a history of controversies, leading to a lifetime ban from the BCCI.
New Delhi, June 29 (NationPress) Former IPL chief Lalit Modi has filed a petition with the Supreme Court, requesting that the BCCI (Board of Control for Cricket in India) be directed to cover a penalty of Rs 10.65 crore, levied against him by the ED, on his behalf.
Previously, the Bombay High Court dismissed Lalit Modi’s plea for a direction to the BCCI to settle this penalty, which was imposed by the Enforcement Directorate (ED) for alleged violations of the Foreign Exchange Management Act (FEMA) during the 2009 IPL season in South Africa.
The court rejected his argument that the by-laws mandate the BCCI to indemnify him, stating that the requests made were "entirely misconceived."
Not only was Lalit Modi’s writ petition dismissed, but a bench comprising Justices M.S. Sonak and Jitendra Jain, in their ruling dated December 19 last year, ordered him to pay costs of Rs 1 lakh within four weeks.
In his special leave petition (SLP) submitted to the apex court, Lalit Modi argued that according to the Rules and Regulations of the Memorandum of Association, the BCCI is obligated to indemnify its office bearers from the board's funds against any losses and expenses incurred while performing their official duties.
Referring to Rule 34 of the BCCI's Memorandum of Association, the petition, filed through advocate Vikas Mehta, noted that Lalit Modi served as the Vice President of BCCI from 2005 to 2010 and as the Chairman of IPL from 2007 to 2010.
The SLP called attention to the "discriminatory approach" taken by the BCCI in indemnifying Honorary Secretary N. Srinivasan and Treasurer M.P. Pandove against similar penalties. It added that Lalit Modi has paid the Rs 1 lakh costs to avoid appearing non-compliant or in contempt of court, but this payment was made without prejudice to his right to contest the Bombay High Court's decision.
In 2013, Lalit Modi, the former IPL Chairman, received a lifetime ban from all BCCI-related activities, stemming from allegations of misconduct and indiscipline, particularly regarding irregularities in the bidding process for IPL franchises.
Shortly after the conclusion of IPL 2010, Lalit Modi was suspended from the BCCI after allegations of misconduct, indiscipline, and financial irregularities surfaced. The BCCI conducted an investigation, leading to his lifetime ban in 2013 after a committee found him guilty of these charges.
Point of View
It is essential to recognize the implications of Lalit Modi's petition on the governance of cricket in India. The demand for indemnification from the BCCI not only challenges established practices but also brings to light the responsibilities of cricket's governing bodies towards their officials. It is crucial for the BCCI to address these issues transparently, ensuring accountability and fairness.
NationPress
29/06/2025
Frequently Asked Questions
What is Lalit Modi's petition about?
Lalit Modi is seeking the Supreme Court's direction for BCCI to pay a penalty of Rs 10.65 crore imposed by the Enforcement Directorate.
Why was Lalit Modi penalized?
He was penalized for alleged violations of the Foreign Exchange Management Act during the 2009 IPL season.
What did the Bombay High Court decide?
The Bombay High Court dismissed Modi's petition, stating that his claims were misconceived.
What does Modi allege regarding BCCI's treatment?
He claims the BCCI has discriminately indemnified other officials while denying him the same treatment.
What was the outcome of the investigation against Modi?
He was banned for life from BCCI affairs in 2013 due to allegations of misconduct and financial irregularities.
