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Supreme Court Dismisses Lalit Modi’s Plea To Make BCCI Pay INR 10.65 Crore Penalty

Jatin

Lalit Modi loses legal battle to make BCCI pay his ED fine [Source: @Nalanda_index/x.com]Lalit Modi loses legal battle to make BCCI pay his ED fine [Source: @Nalanda_index/x.com]

In a sharp decision, the Supreme Court has refused to entertain Lalit Modi’s plea asking the Board of Control for Cricket in India (BCCI) to cough up a INR 10.65 crore penalty slapped on him by the Enforcement Directorate (ED). The penalty was a result of FEMA (Foreign Exchange Management Act) violations.

Supreme Court Slaps Down Lalit Modi’s Attempt To Drag BCCI Into ED Fine

The bench, comprising Justices P.S. Narasimha and R. Mahadevan, wasn’t amused. While they didn’t get into a slogfest, they calmly told Modi he is free to explore civil remedies if he is still keen on chasing this.

In his plea, Lalit Modi claimed that since he was the BCCI vice-president and also the founding IPL chairman at the time of the alleged FEMA violations, the board should foot the bill. According to him, the BCCI’s bylaws had his back.

But both the Bombay High Court earlier and now the Supreme Court made it clear that it doesn’t work that way. The penalty was slapped on him personally, not in his official capacity so the BCCI’s hands are clean.

This whole case stems from a Bombay High Court ruling in December 2023 that had already dismissed Modi’s plea and even fined him Rs 1 lakh. The HC didn’t pull any punches, either. It called the petition “frivolous” and “wholly misconceived”.

“In any event, the reliefs are wholly misconceived. This petition is frivolous, and accordingly, we dismiss this petition,” the high court had stated while throwing the plea out.

It also leaned on a 2005 Supreme Court verdict that clarified the BCCI does not qualify as a “state” under Article 12 of the Constitution. So, no writs or constitutional pressure can be applied to the BCCI in this case.

No Public Function, No Responsibility

The HC underlined that since the ED penalty was personal in nature, the matter didn’t fall under any public function where BCCI could be asked to step in.

So where does this leave Lalit Modi? Back to square one. The Supreme Court verdict was firm: no cover from BCCI and if Modi wants to fight it out, he will need to do so through civil proceedings.

Meanwhile, this has verdict has added yet another chapter in the long and dramatic tale of Lalit Modi vs Indian cricket’s power corridors.