BCCI in Trouble After Modi Didn’t Inform RBI before moving IPL2
August 4, 2011
It has been discovered that Lalit Modi didnt inform the Indian authorities before changing the venue of IPL2 in 2009.
For major banks are in for serious scrutiny as prima facie investigations reveal that their operations in South Africa went on without clearance from the Reserve Bank of India (RBI), a clear example of violation of the Foreign Exchange Maintenance Act.
The Parliamentary Standing Committee on Finance in its 38th report on BCCI and IPL has noted: “It has been seen from the (Finance) Ministry’s reply (to questions from the Committee) that the BCCI had not taken permission from the RBI and the Income Tax Department for opening and operating Foreign Currency accounts in South Africa.”
The account that was supposed to be operated by the RBI was instead operated by the BCCI in agreement with Cricket South Africa (CSA) which can be thought of as a Fema violation.
It has come to light, that in their hurry to start operations to stick to an earlier announced schedule, the BCCI and SCA signed an agreement to open a foreign currency account, and that the CSA would not release funds from the account without prior authorisation from the BCCI, which means the latter was actually operating the account thus meaning the BCCI could be in trouble.