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Lalit Modi is the founder of the IPL. He launched the IPL Franchise League in 2008.
The Supreme Court on Monday dismissed the petition of former IPL chairman Lalit Modi. In the petition, Lalit demanded a fine of Rs 10.65 crore to BCCI. The fine was imposed on them by the Enforcement Directorate (ED) to violate the Foreign Exchange Management (FEMA).
Justice P.S. Narasimha and Justice R. Mahadevan’s bench did not describe Modi’s plea as reply and said, “In this case, Modi can try legal measures in the civil court, but no direct order can be given on BCCI.”
Answers to 6 questions related to Lalit Modi’s fine …
1. What is the whole matter? In 2009, the IPL was held in South Africa. During this time, ED imposed a fine of ₹ 10.65 crore on Modi for the transactions done during shifting IPL. He was accused of violation of FEMA (Foreign Exchange Management Act).
Modi filed a petition in the Bombay High Court and the Supreme Court against this. He had argued that BCCI should bear the cost and loss of whatever he worked while being the IPL chairman and vice -president of BCCI, as there is such a provision in the rules of the board.
The IPL final of 2009 was played in Johannesburg, South Africa.
2. What did Lalit say in his petition? Lalit Modi said in his petition that he was made the Vice President of BCCI from 2005 to 2010 and the chairman of the IPL from 2007 to 2010. Under Rule 34 of BCCI’s Memorandum of Association, the board has to pay compensation to its officers for the losses and expenses during their tenure.
Lalit Modi also said in the petition that BCCI first N. Srinivasan (former Secretary) and M.P. Pandov (former treasurer) was given relief from penalty in similar cases. He alleged that BCCI had worked in a discriminatory manner.
3. Why did the Bombay High Court dismiss the petition? Lalit Modi’s petition was rejected by the Bombay High Court on 19 December 2024 in this case. The High Court then said that the petition is completely based on misunderstanding. The fine imposed under FEMA is individual, which Modi will have to repay. The court also imposed a fine of ₹ 1 lakh on Modi, which was asked to submit the Tata Memorial Hospital.
4. What did the court say about BCCI? The court said, BCCI does not fall under the definition of the state under Article 12 of the Constitution of India, so a writ petition (order) cannot be filed on BCCI. Lalit Modi’s claim BCCI is a public body and should compensate for the expenditure is not judicially correct.
25 April 2010, Lalit Modi during the IPL final played in Mumbai
5. Why was Lalit Modi banned? After the 2010 IPL season, Lalit Modi was accused of fixing, economic disturbances in the auction. BCCI immediately suspended him and started an investigation. The inquiry 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, now he can demand compensation from BCCI through civil court in this matter. But the Supreme Court has made it clear that the demand for direct order through such a writ petition does not come under the purview of the law.