Did the Supreme Court Deny Lalit Modi’s Request for BCCI Indemnification?
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Synopsis
The Supreme Court's recent decision to reject Lalit Modi's plea against the BCCI raises significant questions about governance in cricket. With a hefty penalty of Rs 10.65 crore at stake, this ruling sets a precedent for the responsibilities of sports boards. Explore the implications of this ruling in the cricketing world.
Key Takeaways
- Lalit Modi's plea was dismissed by the Supreme Court.
- The penalty was related to the Foreign Exchange Management Act.
- Modi can pursue other legal avenues after this ruling.
- The case highlights issues of governance within the BCCI.
- The ruling emphasizes accountability in cricket management.
New Delhi, June 30 (NationPress) The Supreme Court on Monday dismissed a plea filed by former IPL chief Lalit Modi, who sought a directive for the BCCI (Board of Control for Cricket in India) to cover a penalty of Rs 10.65 crore levied against him for allegedly violating the Foreign Exchange Management Act (FEMA).
A bench comprising Justices P.S. Narasimha and R. Mahadevan chose not to interfere with the Bombay High Court's decision, which had rejected his writ petition urging the BCCI to cover this penalty, imposed by the Enforcement Directorate (ED) for supposed breaches of foreign remittance laws during the 2009 IPL season in South Africa.
Nonetheless, the Justice Narasimha-led bench stated that Lalit Modi may explore other legal avenues, including filing a civil suit.
In an order dated December 19 of the previous year, the Bombay High Court had dismissed Lalit Modi's argument that a writ order could be issued to the BCCI, asserting that the board's by-laws mandate it to indemnify him.
Not only was Lalit Modi's writ petition rejected, but the bench, comprising Justices M.S. Sonak and Jitendra Jain, remarked that the relief sought was "entirely misconceived" and ordered him to pay costs of Rs 1 lakh within four weeks.
In his special leave petition (SLP) presented before 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 officers from the board's funds against any losses and expenses incurred while fulfilling their official duties.
Referring to Rule 34 of the BCCI's Rules and Regulations, the plea, submitted through advocate Vikas Mehta, indicated that Lalit Modi held the position of Vice President of BCCI from 2005 to 2010 and Chairman of IPL from 2007 to 2010. The SLP underlined the "discriminatory treatment" by the BCCI in indemnifying Honorary Secretary N. Srinivasan and Treasurer M.P. Pandove regarding penalties imposed on them.
Shortly after the conclusion of IPL 2010, Lalit Modi faced suspension from the BCCI due to allegations of misconduct, indiscipline, and financial irregularities. The BCCI subsequently initiated an investigation that led to a lifetime ban in 2013 after a committee found him guilty of these charges.
Point of View
It is crucial to acknowledge the Supreme Court's ruling as a pivotal moment in the governance of cricket in India. Lalit Modi's case spotlights the responsibilities of sports organizations towards their officials. The judiciary's decision not to intervene sends a strong message about accountability and compliance with financial regulations in sports.
NationPress
30/06/2025
Frequently Asked Questions
What was the Supreme Court's decision regarding Lalit Modi's plea?
The Supreme Court rejected Lalit Modi's plea to direct the BCCI to pay a penalty of Rs 10.65 crore imposed on him.
What law did Lalit Modi allegedly violate?
Lalit Modi was alleged to have violated the Foreign Exchange Management Act (FEMA).
What are Lalit Modi's options after the Supreme Court's ruling?
Lalit Modi can explore other legal remedies, including filing a civil suit.
What penalty was imposed on Lalit Modi?
A penalty of Rs 10.65 crore was imposed on Lalit Modi by the Enforcement Directorate.
What positions did Lalit Modi hold in the BCCI?
Lalit Modi served as the Vice President of BCCI from 2005 to 2010 and as Chairman of IPL from 2007 to 2010.
