New Delhi, June 30: The Supreme Court on Monday rejected the petition of former IPL chairman Lalit Modi. In the petition, Lalit had demanded that the BCCI pay the fine of Rs 10.65 crore imposed on him. This fine was imposed on him by the Enforcement Directorate (ED) for violating the Foreign Exchange Management (FEMA).
A bench of Justices P.S. Narasimha and R. Mahadevan termed Modi’s petition as not worthy of reply and said, “In this case, if Modi wants, he can try legal remedies in the civil court, but no direct order can be given on BCCI.”
1. What is the whole matter?
In 2009, IPL was organised in South Africa. During this time, ED imposed a fine of ₹10.65 crore on Modi for the transactions done during the shifting of IPL. He was accused of violating the FEMA (Foreign Exchange Management Act).
Modi had filed a petition against this in the Bombay High Court and the Supreme Court. He had argued that whatever work he did as the IPL chairman and BCCI vice-president, the BCCI should bear its expenses and losses, because there is such a provision in the rules of the board.
2. What did Lalit say in his petition?
Lalit Modi said in his petition that he was appointed as the Vice President of BCCI from 2005 to 2010 and the Chairman of IPL from 2007 to 2010. Under Rule 34 of the Memorandum of Association of BCCI, the board has to compensate its officials for the losses and expenses incurred during their tenure.
Lalit Modi also said in the petition that BCCI had earlier given relief from penalty to N. Srinivasan (former secretary) and M.P. Pandove (former treasurer) in similar cases. He alleged that BCCI has acted in a discriminatory manner.
3. Why did the Bombay High Court reject the petition?
In this case, on 19 December 2024, the Bombay High Court rejected Lalit Modi’s petition. The High Court had then said that the petition is completely based on misunderstanding. The fine imposed under FEMA is personal, which Modi will have to pay. The court also imposed a fine of ₹ 1 lakh on Modi, which was asked to be deposited with Tata Memorial Hospital.
4. What did the court say about BCCI?
The court said, BCCI does not fall under the definition of state under Article 12 of the Constitution of India, hence a writ petition (order) cannot be filed against BCCI. Lalit Modi’s claim that BCCI is a public body and it should reimburse the expenses is not judicially correct.
5. Why was Lalit Modi banned?
After the 2010 IPL season, Lalit Modi was accused of fixing in the auction and financial irregularities. BCCI immediately suspended him and started an investigation. The investigation committee found him guilty in 2013, after which Lalit was banned for life in 2013.
6. Is Lalit’s legal battle over now?
No, the Supreme Court has not completely closed the door. If Modi wants, he can now demand compensation from BCCI in this case through the civil court. But the Supreme Court has made it clear that seeking a direct order through such a writ petition is not within the scope of the law.