Tribunal overturns most FEMA charges against Lalit, BCCI
SAFEMA appellate tribunal reduces and partly upholds FEMA penalties in the 2009 IPL South Africa shift case involving the BCCI and Lalit Modi
GS2GS3The HinduGS2Foreign Exchange Management Act, 1999SAFEMA appellate tribunalBoard of Control for Cricket in India
The appellate tribunal under SAFEMA has substantially overturned the Enforcement Directorate’s findings in the 2009 Indian Premier League South Africa shift case. The tribunal’s order is relevant for UPSC because it links foreign-exchange compliance, appellate scrutiny, and penalty proportionality in one case.
What happened
The tribunal rejected most of the Enforcement Directorate’s conclusions against the Board of Control for Cricket in India, Lalit Modi, and other appellants. However, the tribunal upheld two violations against the Board of Control for Cricket in India and treated the two counts differently at the penalty stage.
What changed after appellate review
The tribunal upheld a violation relating to remittance of funds abroad beyond what was reflected in the books. It kept a ₹4 crore penalty on that count. It also upheld a violation relating to delay in repatriating ticket-sale proceeds to India, but reduced the penalty from ₹4 crore to ₹1 crore because the money was eventually brought back.
