Tribunal sets aside most of the FEMA violation charges against Lalit Modi, BCCI

The Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) has largely overturned the Enforcement Directorate’s (ED) findings and penalties against the Board of Control for Cricket in India (BCCI), former Indian Premier League (IPL) chairman Lalit Modi, and other appellants in the Foreign Exchange Management Act (FEMA) case relating to the 2009 IPL’s shift to South Africa.

The ED had alleged that the BCCI contravened FEMA provisions by remitting funds overseas to organise the tournament and had imposed penalties amounting to several crores on the Board and its office-bearers.

SC junks Lalit Modi's plea seeking BCCI to pay ED penalty A bench of the Tribunal comprising its Chairman Justice Munishwar Nath Bhandari and Member Rajesh Malhotra partly allowed the appeals against the ED’s order dated May 31, 2018.

The order had imposed penalties on the BCCI, Mr.

Modi, former BCCI president N.

Srinivasan, M.P.

Pandove, the State Bank of India, and its former Chief Manager A.K.

Nazeer Khan for alleged violations of FEMA.

In its order, the Tribunal set aside most of the ED’s conclusions against the BCCI, Mr.

Modi and the other appellants.

It also cleared the State Bank of India, the authorised dealer bank, and Mr.

Khan of liability, holding that the foreign remittances were processed in the ordinary course of banking operations and did not constitute FEMA violations on their part.

However, the Tribunal upheld the ED’s findings on two specific counts.

It retained the penalty of ₹4 crore imposed on the BCCI for remitting an amount abroad that exceeded what was reflected in its books of accounts.

The Tribunal also agreed that there had been a delay in bringing back the proceeds from ticket sales to India.

While it upheld the finding of a FEMA violation on this count, it reduced the penalty on the BCCI from ₹4 crore to ₹1 crore, observing that the funds had eventually been repatriated.

“For over sixteen years, I have consistently maintained that I acted in good faith, in the best interests of Indian cricket and the IPL, and committed no personal wrongdoing,” Mr.

Modi said in a statement.