Tribunal overturns ED penalties in 2009 IPL foreign exchange case
The Appellate Tribunal under the Special Act for Foreign Exchange Management Act (SAFEMA) has quashed penalties imposed on former officials, ruling that tournament remittances were current account transactions and that Modi lacked financial authority over BCCI compliance.
The Appellate Tribunal under the Special Act for Foreign Exchange Management Act (SAFEMA) has set aside penalties imposed on former Indian Premier League (IPL) chairman Lalit Modi and other ex-BCCI officials regarding the 2009 IPL season. The ruling concludes more than 16 years of investigations and legal proceedings initiated by the Enforcement Directorate (ED).
The tribunal determined that foreign remittances linked to the tournament were current account transactions rather than capital account transactions. It further found that Modi was not responsible for the Board of Control for Cricket in India’s (BCCI) Foreign Exchange Management Act (FEMA) compliance and did not possess the financial powers alleged by the ED.
The 2009 IPL season was relocated from India to South Africa due to the country’s general elections. Modi has stated that the move was necessary to ensure the tournament’s survival, arguing that its successful staging allowed the IPL to grow into a valuable sporting property.
Reacting to the decision, Modi described the outcome as a major legal victory and the conclusion of the single most significant legal matter arising from the 2009 South Africa IPL. He maintained that he acted in good faith in the best interests of Indian cricket and committed no personal wrongdoing.
Modi thanked his legal team, family, and supporters for their belief in him during the lengthy process. He characterised the judgment as a vindication of due process and objective legal analysis, emphasising that allegations must be tested against evidence and law.
