The Enforcement Directorate’s (ED’s) investigations into financial transactions by IPL franchisees and holding companies reveal that three prominent IPL teams out of eight have links with entities indirectly controlled by former IPL commissioner Lalit Modi and have received foreign funding violating FEMA and RBI rules.
Documents with Outlook show that Rajasthan Royals and Kings XI Punjab have received foreign funding from one entity linked to Modi. Kolkata Knight Riders also received investments from a Mauritius-based company in which Modi has high stakes.
Due to the complex ownership and shareholding pattern of various IPL teams, it is suspected that there is a round-tripping (domestic funds being routed through a foreign entity and brought back to the country) of money through Mauritius, Dubai, Hong Kong and Singapore.
ED documents show that Jaipur IPL (owners of Rajasthan Royals) and KPH Dream Cricket Pvt Ltd (owners of Kings XI Punjab) are sub-holding entities of EM Holding Sports Limited,...