The Supreme Court on Monday dismissed former IPL commissioner Lalit Modi’s petition seeking to compel the Board of Control for Cricket in India (BCCI) to pay a Rs 10.65 crore penalty, which was imposed on him by the Enforcement Directorate (ED) for violations of the Foreign Exchange Management Act (FEMA).
A bench of Justices P S Narasimha and R Mahadevan, however, observed that Modi remains free to explore civil remedies as per law.
The case stems from a December 19, 2023, ruling by the Bombay High Court, which had dismissed Modi’s plea as “frivolous and wholly misconceived,” imposing a cost of Rs 1 lakh on him.
The high court had ruled that the adjudicating authority under FEMA had imposed the penalty personally on Modi, and there was no legal basis to direct the BCCI to bear the amount.
Modi, in his petition, contended that he was serving as vice-president of the BCCI and chairman of its subcommittee—the IPL governing council—at the time of the alleged FEMA violations.
He argued that the BCCI, under its own bylaws, was obligated to indemnify him for actions taken in official capacity.
However, the high court had pointed to a 2005 Supreme Court ruling that the BCCI does not fall under the definition of "State" under Article 12 of the Constitution. As such, the court held that a writ could not be issued against it in a matter that does not involve the discharge of any public function.
“In matters of alleged indemnification of the petitioner in the context of penalties imposed by the ED, there is no question of discharge of any public function,” the high court had said, adding that Modi’s plea seeking such reliefs was without merit.
The court further ordered Modi to deposit Rs 1 lakh with the Tata Memorial Hospital within four weeks as cost.
(With inputs from PTI)
A bench of Justices P S Narasimha and R Mahadevan, however, observed that Modi remains free to explore civil remedies as per law.
The case stems from a December 19, 2023, ruling by the Bombay High Court, which had dismissed Modi’s plea as “frivolous and wholly misconceived,” imposing a cost of Rs 1 lakh on him.
The high court had ruled that the adjudicating authority under FEMA had imposed the penalty personally on Modi, and there was no legal basis to direct the BCCI to bear the amount.
Modi, in his petition, contended that he was serving as vice-president of the BCCI and chairman of its subcommittee—the IPL governing council—at the time of the alleged FEMA violations.
He argued that the BCCI, under its own bylaws, was obligated to indemnify him for actions taken in official capacity.
However, the high court had pointed to a 2005 Supreme Court ruling that the BCCI does not fall under the definition of "State" under Article 12 of the Constitution. As such, the court held that a writ could not be issued against it in a matter that does not involve the discharge of any public function.
“In matters of alleged indemnification of the petitioner in the context of penalties imposed by the ED, there is no question of discharge of any public function,” the high court had said, adding that Modi’s plea seeking such reliefs was without merit.
The court further ordered Modi to deposit Rs 1 lakh with the Tata Memorial Hospital within four weeks as cost.
(With inputs from PTI)
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