28 February, 2021

Address Unknown...

The ED accused the BCCI for FEMA violations. The blame was heaped on the elusive LaMo.

Address Unknown...

How serious are the complaints against Lalit Modi? One of the 15 showcause notices served on him in 2012 refers to the penalty for wilfully not appearing before the designated officials. Quoting the relevant sections of the Income Tax Act, the notice from the Enforcement Directorate mentions solemnly that the penalty ‘will not be less than five hundred Rupees and may extend to Rupees 10,000 for each default’. That possibly explains why Lalit Modi has not bothered to appear before the ED in the past five years.

Also, judging by this showcause notice, it is the BCCI which is accused of violating the Foreign Exchange Management Act (FEMA), 1999. The Act prohibits Indian citizens and bodies from accepting any deposit from foreigners or companies registered abroad without permission from the RBI. The BCCI is a ‘charitable trust’ registered as a society in Tamil Nadu and is not eligible for remittances from abroad. The ini­­tial notice from the ED, therefore, was sent to the BCCI—to IPL commissioner Lalit Modi, treasurer N. Srinivasan and...

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