SC refuses to entertain Lalit Modi's plea seeking that BCCI pay penalty imposed on him by ED
A bench of Justices PS Narasimha and R Mahadevan said that Modi could pursue civil remedies seeking indemnification. The bench was dealing with an appeal filed by the former IPL chairperson against a Bombay High Court order dismissing his plea, Bar and Bench reported.
Modi has been under investigation by Indian authorities for alleged foreign exchange violations and a Rs 425-crore television rights deal for the 2009 edition of the IPL with World Sports Group. He fled India after attending only one interrogation session with the Income Tax Department and Enforcement Directorate officials in Mumbai.
In 2018, the Enforcement Directorate imposed a fine of Rs 121.56 crore on several entities, including the BCCI, its then chairperson N Srinivasan and others. Out of this amount, Modi had been ordered to pay Rs 10.65 crore, Bar and Bench reported.
The penalty, which was part of the larger Enforcement Directorate investigation into the 2009 edition of the IPL, was imposed after it was alleged that over Rs 243 crore was allegedly transferred outside India in contravention of Foreign Exchange Management Act regulations.
On December 19, the High Court had dismissed a petition filed by Modi seeking an order to the BCCI to pay the penalty, calling it 'frivolous' and 'wholly misconceived', PTI reported. It also imposed a Rs 1 lakh fine on Modi.
In his petition, Modi had said that he served as the BCCI vice president and the chairperson of the IPL governing council when the alleged violations took place. He argued that on this account, the BCCI was obligated to indemnify him under its bylaws.
However, the High Court, citing a 2005 Supreme Court ruling, said that the BCCI was not considered a 'state' under Article 12 of the Constitution and hence no writ could be issued against it, PTI reported.
Modi subsequently filed a Special Leave Petition before the Supreme Court against the High Court's decision.
In the Supreme Court on Monday, the bench reiterated that the BCCI was not a 'state' under Article 12 and hence not directly amenable to writ jurisdiction under Article 226, except in certain limited functional public duties like organising sports events, Live Law reported.
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