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IPL Founder Lalit Modi Seeks Supreme Court Order For BCCI To Pay ₹10 Crore ED Penalty

Soumyajit Dutta

Lalit Modi [Source: @IndianTechGuide/X.com]Lalit Modi [Source: @IndianTechGuide/X.com]

Former Indian Premier League (IPL) chairman Lalit Modi has approached the Supreme Court, petitioning it to direct the Board of Control for Cricket in India (BCCI) to pay a Rs 10.65 crore penalty imposed on him by the Enforcement Directorate (ED). The revelation has been made by a report from News18, which credited the development to IANS.

Lalit Modi, instrumental in founding the IPL, was banned for life from all BCCI activities in 2013. This followed allegations of misconduct, indiscipline, and financial irregularities during his tenure, particularly concerning irregularities in IPL franchise bidding processes. He was initially suspended immediately after IPL 2010 and subsequently found guilty, leading to a lifetime ban.

Lalit Continues To Fight Legal Battle

The penalty stems from alleged violations of the Foreign Exchange Management Act (FEMA) related to the 2009 IPL season held in South Africa. Modi petitioned the Bombay High Court, arguing that the BCCI's own rules (specifically Rule 34 of its Rules and Regulations) obligated it to indemnify its office bearers for losses and expenses incurred during official duties. He served as BCCI Vice-President (2005-2010) and IPL Chairman (2007-2010).

High Court Rejects Modi's Plea

The Bombay High Court, in an order dated December 19, 2023, dismissed Modi's plea as "wholly misconceived." A bench of Justices M.S. Sonak and Jitendra Jain rejected his claim for indemnification and further directed him to pay costs of Rs 1 lakh within four weeks.

Lalit Modi Appeals to Supreme Court

Modi has now filed a Special Leave Petition (SLP) in the Supreme Court challenging the High Court's decision. His petition reiterates the argument based on Rule 34 and highlights that the BCCI has previously indemnified other officials, such as Honorary Secretary N. Srinivasan and Treasurer M.P. Pandove, against penalties. He contends this demonstrates a "discriminatory manner" in the BCCI's application of its rules.

Modi stated he paid the Rs 1 lakh costs imposed by the High Court to avoid non-compliance or contempt but did so "without prejudice" to his right to appeal. The Supreme Court will now consider Modi's plea for a directive ordering the BCCI to cover the substantial penalty levied against him by the ED.