The offices of the Board of Control for Cricket in India (BCCI) and the Indian Premier League (IPL) may soon have visitors they may not be happy to see.
Officers of the state Revenue department’s enforcement cell are likely pull up the two cricket bodies for non-payment of registration charges to the government.
The BCCI and IPL owe the state government a few crores as registration duty on five types of agreements signed by them with sponsors, franchisees and players.
Revenue department officials claimed the duty has not been paid despite multiple reminders and notices since May 2008. “Despite at least five reminders, there has been no response from them,’’ a senior revenue official said.
Revenue Minister Narayan Rane told Hindustan Times, “I have asked department officials to initiate proceedings against them [BCCI and IPL]. Action can be taken against these bodies under the Bombay Stamp Act.’’
Provisions in the law allow revenue authorities to enter an office and inspect and impound or seize documents including telecasting, sponsorship and franchisee agreements that are not duly stamped.
Documents impounded for want of proper duty attract a monthly penalty at the rate of 2 per cent from the date of the execution of such documents.
Revenue department officials say registration duty can be charged on the main sponsorship rights agreement between IPL and DLF, the association sponsorship rights agreement with companies such as Hero Honda, Pepsi and Kingfisher, telecast agreements with Sony Television, Network Ten, Geo Super and Asian Television Network, the official website agreement with Live Current Media Inc, agreements with the eight franchisees and contracts with important players.
The IPL owes the government Rs 2.50 on Rs 1,000 on every agreement.
The registration fee on every individual agreement can earn the department at least Rs 10 lakh. “Why should IPL or BCCI be an exception to the rule? This is an annual loss of a few crores for the state,” a Revenue department official said on condition of anonymity.