ED probe against Lalit, others finds forex violations of Rs 106cr

An Enforcement Directorate (ED) probe against former Indian Premier League chief Lalit Modi and others has established alleged forex violations worth Rs 105.94 crore related to the grant of guarantees to participating foreign players of a certain base, retainer fee and player fee.

An Enforcement Directorate (ED) probe against former Indian Premier League chief Lalit Modi and others has established alleged forex violations worth Rs 105.94 crore related to the grant of guarantees to participating foreign players of a certain base, retainer fee and player fee.

The probe found the guarantees were allegedly granted in 2007-08 without the general or special permission of the Reserve Bank of India — this is needed in cases of persons not residing in India, according to a government source familiar with the probe.

The guarantees were to be invoked by players in case they were not picked by franchises in the auction.

The case is under adjudication and the process may get over in August.

Earlier, the ED had issued a notice under section 42 (1) of the Foreign Exchange Management Act (FEMA), providing for vicarious liability to the IPL chief.

According to Modi’s advocates, the Board of Control for Cricket in India (BCCI) had filed a detailed response to the ED show cause notice, denying those allegations. They also pointed out that Modi, in a separate reply, had denied both the allegations and the application of section 42 (1) to him.

Despite attempts, HT could not reach Modi’s legal counsel for a response.

According to the source, the probe also found that on comparing the list of players to the copies of Memorandum of Understanding (both submitted by the IPL’s organising body), it turned out that a large of number of agreements made with the foreign players had not been initially submitted to the ED.