FEMA Penalty: Lalit Modi Petitions SC Demanding BCCI To Indemnify Him

FEMA penalty: Lalit Modi petitions SC demanding BCCI to indemnify him (Image Source: IANS)

Foreign Exchange Management Act: Former IPL head Lalit Modi has approached the Supreme Court seeking a direction to the BCCI (Board of Control for Cricket in India) to pay a penalty of Rs 10.65 crore, slapped on him by the ED, on his behalf.

Earlier, the Bombay High Court had turned down Lalit Modi’s petition seeking a direction to the BCCI to pay this penalty imposed on him by the Enforcement Directorate (ED) for purported infraction of the Foreign Exchange Management Act (FEMA) during the 2009 IPL season held in South Africa.

It had refused to accept his contention that the by-laws require the BCCI to indemnify him, and said that the reliefs sought were "wholly misconceived".

Not only was Lalit Modi’s writ petition dismissed, but a bench of Justices M.S. Sonak and Jitendra Jain, in its order passed on December 19 last year, asked him to pay costs of Rs 1 lakh within 4 weeks.

In his special leave petition (SLP) filed before the apex court, Lalit Modi contended that as per the Rules and Regulations to Memorandum of Association, the BCCI is under an obligation to indemnify its office bearers out of the board's funds against all losses and expenses incurred by them during the discharge of their official duty.

Referring to Rule 34 of the Rules and Regulations of the Memorandum of Association of BCCI, the plea, filed through advocate Vikas Mehta, submitted that Lalit Modi was holding the office of Vice President of BCCI from 2005 to 2010 and Chairman of IPL from 2007 to 2010.

The SLP highlighted the "discriminatory manner" adopted by the BCCI in indemnifying Honorary Secretary N. Srinivasan and Treasurer M.P. Pandove against the penalty imposed on them. It added that Lalit Modi has deposited costs of Rs 1 lakh as he did not want to be seen as being non-compliant or in contempt of the court, but the payment was made without prejudice to his right to challenge the impugned decision of the Bombay High Court.

In 2013, Lalit Modi, the former IPL Chairman, was given a life ban from all BCCI affairs. The ban stemmed from accusations of misconduct and indiscipline, particularly concerning irregularities in the bidding process for IPL franchises

The SLP highlighted the "discriminatory manner" adopted by the BCCI in indemnifying Honorary Secretary N. Srinivasan and Treasurer M.P. Pandove against the penalty imposed on them. It added that Lalit Modi has deposited costs of Rs 1 lakh as he did not want to be seen as being non-compliant or in contempt of the court, but the payment was made without prejudice to his right to challenge the impugned decision of the Bombay High Court.

Article Source: IANS