Supreme Court Rejects Lalit Modi's Request for BCCI to Cover ED Penalty Costs and Liabilities.
  • 496 views
  • 2 min read

The Supreme Court of India has dismissed a plea filed by former Indian Premier League (IPL) Chairman Lalit Modi, seeking to compel the Board of Control for Cricket in India (BCCI) to pay a penalty of ₹10.65 crore imposed on him by the Enforcement Directorate (ED) for violations of the Foreign Exchange Management Act (FEMA).

A bench of Justices P. S. Narasimha and R. Mahadevan ruled that Modi could pursue civil remedies available to him under the law. The case originates from a penalty levied on Modi by the ED concerning alleged financial irregularities during the 2009 IPL season, which was held in South Africa. The ED's investigation led to a total penalty of ₹121.56 crore imposed on several parties in 2018, including the BCCI, its then-chairman N. Srinivasan, and others. Modi's share of the penalty was ₹10.65 crore.

Modi had argued that the BCCI was obligated to indemnify him for actions taken in his official capacity as vice-president of the BCCI and chairman of the IPL governing council, a subcommittee of the BCCI, citing the board's bylaws. He claimed that the penalty arose from actions taken during his tenure with the cricket board.

However, the Bombay High Court had previously dismissed Modi's petition as "frivolous and wholly misconceived" and imposed a cost of ₹1 lakh on him. The High Court stated that the adjudicating authority under FEMA had imposed the penalty on Modi personally, and there was no legal basis to direct the BCCI to bear the amount. The court also referenced a 2005 Supreme Court judgment stating that the BCCI does not fall under the definition of a 'state' as defined under Article 12 of the Constitution. The High Court further noted that Modi had filed the petition in 2018 despite clear orders from the apex court. It added that there was no question of the discharge of any public function in the matter of alleged indemnification of Modi in the context of penalties imposed by the ED.

Before the Supreme Court, Modi's counsel argued that the matter could be subjected to writ jurisdiction under Article 226 of the Constitution of India. He also pointed out that in appellate proceedings under the Prevention of Money Laundering Act, 2002 (PMLA), others who were slapped with similar penalties by the ED, including former BCCI chief N. Srinivasan, had received interim relief. Modi's counsel submitted that if his appeal was not decided in his favor, he should be allowed to pursue a civil suit.

The Supreme Court disposed of Modi's appeal against the Bombay High Court's decision. The court clarified that Modi may pursue appropriate civil remedies if he chooses.


Writer - Gaurav Khan
Gaurav Khan is an ambitious journalist, poised to contribute to the vibrant media scene, driven by a passion for sports. A recent graduate with a strong analytical background, Gaurav is keenly interested in exploring sustainable development and urban planning. He's committed to delivering well-researched, insightful reports, aiming to shed light on issues pertinent to the future. His dedication to sports also hones his analytical approach and drive for impactful storytelling.
Advertisement

Latest Post


Sports  |  Aug 18, 2025
A recent video clip of Philadelphia Flyers' rising star Matvei Michkov expressing his dislike for the "dump and chase" style of hockey has stirred up a playful clash with the team's new head coach, Rick Tocchet. The 20-year-old Michkov, known for his...

Sports  |  Aug 18, 2025
Wayne Rooney has voiced his strong opinions on the persistent issue of racism in football, recounting a distressing experience during his time managing DC United in Major League Soccer. Speaking on his new BBC podcast, "The Wayne Rooney Show," the fo...

World  |  Aug 18, 2025
The Samajwadi Party (SP) is escalating its conflict with the Election Commission of India (ECI), accusing the poll body of inaction regarding alleged voter list irregularities during the 2022 Uttar Pradesh Assembly elections. The SP has produced copi...

Sports  |  Aug 18, 2025
The Edmonton Oilers have been actively exploring the European market to bolster their forward depth, particularly after signing David Tomasek. While Tomasek is expected to compete for a spot on the NHL roster, reports indicate that the Oilers also co...

Advertisement
Entertainment  |  Aug 18, 2025
Taylor Swift has once again demonstrated her unparalleled influence in the music industry, this time with the rapid sell-out of the vinyl variants for her upcoming album, "The Life Of A Showgirl". The new variants, unveiled on Monday, August 18th, we...

Technology  |  Aug 18, 2025
Sherrod Brown, who recently served as a United States Senator for Ohio from 2007 to 2025, has announced his candidacy for the 2026 special election in Ohio. Brown, a Democrat, is seeking to reclaim a Senate seat after losing his re-election bid in 20...

World  |  Aug 18, 2025
The Rajya Sabha experienced a day of disruption on Monday as the Opposition staged a walkout over the issue of the Special Intensive Revision (SIR) of electoral rolls in Bihar. Despite the turmoil, the government successfully pushed through the India...

World  |  Aug 18, 2025
A controversy has erupted in Assam over a question included in a recent Agricultural Development Officer (ADO) examination regarding the Manipur crisis, specifically concerning the absence of any mention of Kuki militants in the answer choices. The A...

Advertisement

About   •   Terms   •   Privacy
© 2025 DailyDigest360