Kochi franchise under IT watch

Amidst reports of IPL chairman, Lalit Modi's, links with some franchise owners and his running feud with Minister of State for External Affairs, Shashi Tharoor, escalating further on Wednesday, the Income Tax (IT) department has started a probe into the source of funding of Rendezvous Sports that won the Kochi franchise.

Amidst reports of IPL chairman, Lalit Modi's, links with some franchise owners and his running feud with Minister of State for External Affairs, Shashi Tharoor, escalating further on Wednesday, the Income Tax (IT) department has started a probe into the source of funding of Rendezvous Sports that won the Kochi franchise.

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“We are looking into Rendezvous’ funding details after indications that some equity holders of the franchise came through untaxed sources and routes like Mauritius,” a top IT official told HT.

It is for the first time that suspicion has been raised on the use of slush money to fund any of the IPL teams, he said.

In the case of other teams, individuals and companies who file IT returns have made investments. In Rendezvous’ case, however, a part of the funding seems to have been channelled out of tax havens, the official added. Kochi franchise spokesperson, Satyajit Gaikwad, denied this.

HT has learnt that ED could also look into the source of funding of the Rajasthan Royals.