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ED issues Rs 425-cr show-cause notice to BCCI, IPL, MSM and WSG for forex violation
MUMBAI: The Enforcement Directorate (ED) has issued Rs 425 crore (Rs 4.25 billion) show-cause notices to the BCCI, Indian Premier League (IPL), World Sport Group (WSG) and Multi Screen Media (MSM) for alleged breach of forex laws in awarding IPL media rights in 2009.
Quoting sources, PTI reported that the show-cause notices have been issued to those officials in these organisations who had signed the 2009 contract deal.
The BCCI had issued media rights to WSG which, in turn, sold the India subcontinent rights to MSM after the broadcaster paid a facilitation fee of Rs 425 crore (Rs 4.25 billion) to WSG Mauritius.
ED sources said that the financial investigation agency has probed and detected that FEMA and RBI laws were ‘contravened’ in the final execution of this deal.
The report stated that the notices can be appealed within a period of 45 days or else the organisations will have to pay the charged amount.
The notices have been issued to ten individuals and entities including former BCCI president N Srinivasan, former IPL chairman Lalit Modi, IPL COO Sundar Raman, besides officials of WSG and MSM officials for manipulating the contract and making illegal payments.
Earlier, the government had said that the ED is investigating the actual beneficiary of the Rs 425-crore (Rs 4.25 billion) facilitation fee paid by MSM to WSG for acquiring IPL broadcast rights for South Asia.
In its report on action taken to the Parliamentary Standing Committee on Finance, the government said that the agency is not only investigating the award of broadcast rights by the BCCI to the WSG, but also the allegation of payment of facilitation fee by MSM.