Good news for Lalit Modi as Supreme Court allows him to seek remedy in connection with IPL 2009 case

Lalit Modi, the founder, the first league commissioner and the first chairman of the Indian Premier League (IPL) has been granted liberty in a FEMA (Foreign Exchange Management Act)  case in connection with the IPL season of 2009. Modi is now allowed to move to a civil court to seek a remedy against a Rs 10.65 crore fine imposed on him by the Directorate of Enforcement (ED). Lalit Modi had sought direction for the recovery of the fine from the Board of Control for Cricket in India (BCCI), rather than himself.

Modi's plea in Supreme Court

During the hearing, Modi's counsel argued that as per various earlier judicial decisions, the case is well within the Writ jurisdiction provided under Article 226 of the Constitution of India. However, the bench of Justices PS Narasimha and R Mahadevan was of the view that the BCCI has been held as 'not a state' for recovery of the said fine imposed by the probe agency.

What is the case?

This all started in May 2018 when the ED had levied penalties on the BCCI and its former chief N Srinivasan, among others, over alleged violations in the FEMA regulations in the 2009 edition of the IPL. A total penalty of Rs 121.66 crore was imposed, including Rs 82.66 crore on the BCCI, Rs 11.53 crore on Srinivasan, Rs 10.65 crore on Modi, Rs 9.72 crore on former BCCI treasurer MP Pandove, and Rs 7 crore on the State Bank of Travancore.

In 2011, ED also had issued show cause notices to Modi and the BCCI under FEMO provisions regarding the alleged transfer of a sum of Rs 243.45 crore to Cricket South Africa without prior permission of the RBI, prior to the 2009 IPL season.

(With ANI inputs)