The Supreme Court docket on Monday allowed former IPL chairman Lalit Modi to pursue civil cures in opposition to BCCI for cost of penalty underneath the International Trade Administration Act (FEMA) to the tune of over ₹10 crore.
The order was handed by a bench of justices PS Narasimha and R Mahadevan on a petition filed by Modi in opposition to a Bombay excessive court docket choice of Dec 19, 2024 refusing to entertain his writ petition holding {that a} writ petition just isn’t maintainable in opposition to BCCI.
The bench mentioned, “BCCI has been held to be ‘state’ for useful functions associated to cricket. For recoveries, it can’t be equal to state.”
The penalty was imposed by the Enforcement Directorate (ED) in opposition to BCCI, Modi and different workplace bearers alleging FEMA violation within the remittances made by BCCI for staging the 2009 IPL season in South Africa. An quantity of ₹10.65 crore was imposed on Modi whereas various quantities have been imposed in opposition to different workplace bearers. BCCI was slapped with penalty of over ₹82 crore. On the related time, Modi was the IPL chairman and BCCI vice-president.
Modi’s lawyer, advocate Vikas Mehta submitted that this was a case of discrimination by BCCI which had indemnified the penalty in opposition to BCCI secretary N Srinivasan and treasurer MP Pandove, whereas refusing him the identical profit.
“Why have they denied it to you. Is it private,” the bench requested Mehta to which he replied, “Sure. It’s private.” In his petition, Modi mentioned, “The petitioner is aggrieved by choice of respondent (BCCI) in as a lot because the respondent has acted in a discriminatory method by indemnifying N Srinivasan and MP Pandove in opposition to the penalty imposed on them vide order dated August 31, 2018 of the Adjudicating Authority underneath the Prevention of Cash Laundering Act (PMLA).”
Mehta cited Rule 34 of the Guidelines and Rules to Memorandum of Affiliation of BCCI underneath which the Board is underneath an obligation to indemnify the workplace bearers out of the board’s funds in opposition to all losses and bills incurred by them through the discharge of their official obligation.
He identified that the choice to shift the IPL matches to South Africa was a “collective” choice of BCCI and Modi was discharging his official duties as BCCI vice-president and IPL chairman. “It’s pertinent to notice that the mentioned choices have been unanimous and no choice was made by the petitioner in his private capability,” the petition filed by Mehta mentioned.
The HC order had dismissed Modi’s petition with a value of ₹1 lakh. It mentioned, “In issues of alleged indemnification of the petitioner within the context of penalties imposed upon the petitioner by the ED, there is no such thing as a query of discharge of any public perform, and subsequently, for this function, no writ might be issued to the BCCI.”
Mehta paid the associated fee levied on him however challenged the discovering in opposition to BCCI. The highest court docket allowed Mehta’s request to pursue civil cures by submitting a go well with. The order mentioned, “The counsel for petitioner has pretty acknowledged that even when petitioner underneath Article 226 just isn’t maintainable, the petitioner will probably be entitled to avail civil cures as per legislation. Recording this assertion, the petition is disposed.”
Modi was suspended from BCCI on April 26, 2010. He served as vice-president of BCCI from 2005 to 2010 and chairman of the IPL from 2007 to 2010.
