The Appellate Tribunal has overturned some major penalties and lowered fines associated with the 2009 IPL season in South Africa.
The Board of Control for Cricket in India (BCCI) and former IPL chairman Lalit Modi have been provided with much relief in the long pending case of FEMA against IPL 2009, as the Appellate Tribunal under SAFEMA has set aside a number of penalties and reduced others imposed by the Enforcement Directorate (ED).
The decision is made over 16 years after the second edition of the Indian Premier League (IPL) was moved to South Africa due to general elections in India.
Tribunal sets aside penalties against Lalit Modi
Lalit Modi, who had challenged several penalties issued by the Enforcement Directorate, got the biggest break.
The tribunal concluded that the central charges against Modi lacked adequate evidence and that he was not directly liable for the statutory obligations of compliance with FEMA that were leveled against him in the case.
It also noted that the transactions that were key for the staging of IPL 2009 in South Africa were transactions on the current account, which undermined the earlier findings against him.
Consequently the penalties against Modi in the main trial were dropped.
BCCI fines reduced
The tribunal also gave some relief to the BCCI by cutting down on the monetary sanctions imposed on the board.
In one of the cases, the fine imposed on the BCCI was lowered from ₹4 crore to ₹1 crore and penalties on former BCCI secretary N. Srinivasan and former treasurer M.P. Pandove were significantly reduced.
But in another case, the tribunal upheld separate penalties for Srinivasan and Pandove, saying they were responsible for administrative affairs of the board during the relevant period.
Case linked to 2009 IPL move
The case started when the IPL was shifted to South Africa in 2009 due to security concerns during Indian general elections and its second season.
The Enforcement Directorate had said that the foreign exchange valued at nearly USD 49.86 million had been sent abroad without proper approval from the Reserve Bank of India (RBI) and the matter was referred to the Foreign Exchange Management Act (FEMA), 1999.
The BCCI argued that any procedural lapses were a result of a lack of understanding of the rules and regulations, and not a deliberate attempt to defraud.
Lalit Modi welcomes verdict
Lalit Modi, after the judgment, welcomed the decision of the tribunal and stated that it vindicated his position which he had been holding for more than 10 years.
He explained that the decision to have IPL 2009 being held in South Africa was made under “extraordinary circumstances” and was a must to complete the tournament successfully.
The judgment, Modi said, is a vindication of his good faith and shows he did not have any personal misconduct in connection with the tournament.
Long-running legal battle nears conclusion
The decision by the tribunal is a major milestone in the ongoing legal battle of the Indian Premier League.
Some of the penalties have been retained for some of the former BCCI officials, but the judgment brings one of the most high-profile FEMA cases in Indian cricket closer to its end, offering some relief to Lalit Modi and the cricket board.
