ED notice to BCCI on Rs 1,650 cr fund transfer
The Enforcement Directorate (ED) has issued a fresh show-cause notice to the Board of Control for Cricket in India (BCCI) for alleged violation of foreign exchange rules involving transfer and routing of around Rs 1,650 crore.Updated: Nov 29, 2011 01:03 IST
The Enforcement Directorate (ED) has issued a fresh show-cause notice to the Board of Control for Cricket in India (BCCI) for alleged violation of foreign exchange rules involving transfer and routing of around Rs 1,650 crore.
The notice, issued on Friday, relates to the second season of the IPL tournament staged in South Africa in 2009.
BCCI president N Srinivasan on Monday said he was not aware of the notice. "If there is a notice, we will reply to it."
The notice was also issued to former BCCI president Shashank Manohar, former IPL chairman Lalit Modi and a public sector bank.
The show-cause notice asks why action should not be initiated against them under the Foreign Exchange Management Act (FEMA) for violating Reserve Bank of India (RBI) norms and why penalty should not be imposed on them.
According to an ED official, the BCCI had hosted the tournament under an agreement with Cricket South Africa (CSA). "The BCCI operated a foreign bank account without seeking approval from the RBI," said the official who did not want to be named.
The FEMA stipulates an Indian or an Indian entity needs the RBI's permission to open and operate an account abroad.
A source in the ED said the BCCI had transferred foreign exchange worth Rs 250 crore to this foreign account through the CSA. The ED has alleged the BCCI failed to bring back the revenues earned in South Africa.
According to the source, the public sector bank got the notice because it had failed to discharge its responsibilities in regulating and monitoring these transactions. According to the ED, the BCCI had made some remittances through this bank.
In July, the ED had issued a show-cause notice to the BCCI, its officials and others for remitting Rs 90 crore to sports management firm International Management Group (IMG), UK, without the RBI's permission. The IMG conducts the IPL.
First Published: Nov 28, 2011 16:21 IST