Ed Issues Rs.425 core FEMA notice to BCCI, IPL and others

17 Feb,Mumbai

The Enforcement Directorate has slapped a 425 crore rupees show cause notice against BCCI, IPL, their officials and private multimedia firms for alleged contravention of Forex laws in awarding a cricketing media rights contract in 2009.

The notices have been issued to close to ten individuals and entities which include former BCCI chairman N Srinivasan, the then IPL Chairman Lalit Modi, Chief Operating Officer Sunder Raman, and the officials of World Sports Group and Multi Screen Media for allegedly and fraudulently manipulating the contract and making illegal payments.

The deal dates back to 2008 when the BCCI awarded the 10-year media rights to World Sports Group on payment of 918 million dollar. In the same year, World Sports Group also entered into a deal with Multi Screen Media to make Sony the official broadcaster. The contract was replaced a year later with a nine-year deal where Multi Screen Media paid 1.63 billion dollar.

The ED stepped in this case in 2009 and began a probe under the Foreign Exchange Management Act, FEMA to investigate allegations that payment of 425 crore rupees facilitation fee by Multi Screen Media to World Sports Group was made in an alleged unauthorised manner.