BCCI’s financial dealings come under scanner
The Parliament committee on finance has come down heavily on the Board of Control for Cricket in India’s (BCCI) functioning and suggested the government intensively investigate the irregularities committed by the board and its Indian Premier League (IPL) franchises. HT reports. Recommendations by finance standing committee | Actions by govtcricket Updated: Nov 30, 2011 01:26 IST
The Parliament committee on finance has come down heavily on the Board of Control for Cricket in India’s (BCCI) functioning and suggested the government intensively investigate the irregularities committed by the board and its Indian Premier League (IPL) franchises.
In a written reply to an enquiry about the allegations of irregularities in the BCCI and the IPL, sports minister Ajay Maken revealed the Finance Committee’s report in Parliament on Tuesday. The hard-hitting report took the BCCI to task on the basis of an extensive scrutiny conducted by the various agencies of the government, namely the Enforcement Directorate, Income Tax and Service Tax Departments.
“On the basis of such an extensive scrutiny, the committee is inclined to conclude that the fair name of a much-loved sports in the country, which is known as a ‘gentlemen’s game’ should not have been allowed to get sullied and embroiled in transgressions of law ‘off the field’,” the report said.
‘I-T soft on BCCI’
The committee also said that the Income Tax Department has been unduly lenient in dealing with the BCCI. “The committee is constrained to conclude that the Income Tax Department has been very lenient on BCCI allowing them to enrich their coffers at the expense of the exchequer,” it said.
The committee would therefore like this matter to be thoroughly probed and wants an action taken report furnished to the committee within one month of the presentation of this report.
In the meantime, the committee desires that all the pending tax assessments in respect of BCCI should be finalised on the strength of the department’s decision to withdraw exemption originally granted to the BCCI. It also asked the Department of Revenue to review the exemption given to the ICC for the World Cup that was held in the country earlier this year.
“Regarding tax exemption of about Rs 45.00 crore granted to the ICC on the revenue generated from the World Cup, the committee is not convinced about the tenability of the tax exemptions given to the ICC, as the World Cup received huge sponsorships and was patronised by the corporate sector in a big way,” the report said.
The committee also asked the government to thoroughly investigate violations committed relating to investments made by IPL franchises, which have been routed from outside India through entities located in countries such as Mauritius, Bahamas, British Virgin Island etc without the permission of the RBI.