New Delhi: The Supreme Court Monday dismissed a petition filed by former IPL commissioner Lalit Modi, who had sought a direction for the BCCI to indemnify him for a Rs 10.65 crore penalty imposed under the Foreign Exchange Management Act (FEMA). The court declined to entertain the plea, effectively leaving Modi liable for the payment.
A Bench of Justices PS Narasimha and R Mahadevan declined to interfere with a decision of the Bombay High Court turning down his writ petition seeking a direction to the BCCI to pay this penalty imposed by the Enforcement Directorate (ED) for purported infraction of the foreign remittance law during the 2009 IPL season held in South Africa.
However, the Justice Narasimha-led Bench clarified that Lalit Modi could pursue other remedies available under the law, including filing a civil suit.
In an order passed on December 19 last year, the Bombay High Court had refused to accept Lalit Modi’s contention that a writ direction could be issued to the BCCI since the by-laws require the board to indemnify him.
Not only was Lalit Modi’s writ petition dismissed, but a bench of Justices MS Sonak and Jitendra Jain said that the reliefs sought were “wholly misconceived” and asked him to pay costs of Rs 1 lakh within 4 weeks.
In his special leave petition (SLP) filed before the apex court, Lalit Modi contended that as per the Rules and Regulations to Memorandum of Association, the BCCI is under an obligation to indemnify its office bearers out of the board’s funds against all losses and expenses incurred by them during the discharge of their official duty.
Referring to Rule 34 of the Rules and Regulations of the Memorandum of Association of BCCI, the plea, filed through advocate Vikas Mehta, submitted that Lalit Modi was holding the office of Vice President of BCCI from 2005 to 2010 and Chairman of IPL from 2007 to 2010. The SLP highlighted the “discriminatory manner” adopted by the BCCI in indemnifying Honorary Secretary N Srinivasan and Treasurer MP Pandove against the penalty imposed on them.
Shortly after IPL 2010 ended, Lalit Modi was suspended from the BCCI after being accused of misconduct, indiscipline, and financial irregularities. The BCCI launched an investigation against him and banned him for life in 2013 after a committee found him guilty of these charges.
IANS
