Supreme Court Dismisses Lalit Modi's Plea for BCCI to Cover FEMA Fine
The Supreme Court has rejected a plea from former IPL chairman Lalit Modi, who sought an order for the BCCI to pay a ₹10.65 crore penalty imposed on him by the Enforcement Directorate for violating the Foreign Exchange Management Act (FEMA). The court upheld a Bombay High Court ruling that dismissed the petition as "frivolous," noting that the BCCI is not a 'state' under the Constitution and cannot be compelled by a writ to indemnify an individual for a personal penalty.
Unpacked:
Lalit Modi argued that the BCCI should indemnify him under its by-laws for the ₹10.65 crore penalty imposed by the Enforcement Directorate, suggesting the actions leading to the penalty were related to his official capacity within the cricketing body, rather than purely personal conduct.
The court found the petition 'frivolous' because the BCCI is not considered a 'state' under the Constitution, and thus cannot be compelled by a writ to indemnify an individual for a personal penalty. The court also noted there was no legal ground to force the BCCI to pay Modi’s fine.
The Foreign Exchange Management Act (FEMA) regulates foreign exchange and cross-border financial transactions in India. Lalit Modi was penalized for violations related to irregularities in foreign exchange dealings during his tenure as IPL chairman, though the specific offenses involved financial misconduct and unauthorized transactions.
Lalit Modi, founder and former IPL chairman, was suspended and banned for life from the BCCI after being found guilty of financial irregularities. He has faced numerous charges, including money laundering, and has lived in London since investigations began, being labeled a fugitive by Indian authorities.