Explorer

Election Results 2024

(Source: ECI/ABP News/ABP Majha)

BCCI violates RBI guidelines, now forced to pay Rs 9.72 crore fine

The FEMA order categorically states that the transfer of funds was in alleged violation of the RBI guidelines meant for transferring funds abroad

The BCCI has decided to pay a penalty of Rs 9.72 crore imposed on its former treasurer MP Pandove by the Enforcement Directorate (ED) for alleged violation of Foreign Exchange Management Act (FEMA) during 2009 edition of the Indian Premier League (IPL) in South Africa.

It is learnt that Pandove had applied for indemnity under Rule 34 of BCCI constitution where the organisation pays on behalf of the member if he is slapped with a penalty while discharging his function.

Pandove was the treasurer of BCCI in 2009 when IPL was shifted from India to South Africa due to general elections.

Under FEMA, BCCI ought to have taken Reserve Bank of India's (RBI) permission before transferring the money to South African banks but an ED investigation found that the Board had then neither informed nor taken permission from RBI for the transaction.

The FEMA order categorically states that the transfer of funds was in alleged violation of the RBI guidelines meant for transferring funds abroad.

While BCCI has levied a penalty of Rs 82.66 crore, its former president N Srinivasan had a fine of Rs 11.53 crore imposed on him. Fugitive IPL commissioner Lalit Modi was slapped with a fine of Rs 10.65 crore apart from Pandove.

While BCCI has approved the penalty amount to be paid on behalf of Pandove (a copy of the letter is with PTI), the letter states that if Pandove is "found guilty of any wilful act or default, the said amount will be recovered".

The letter also states that if Pandove can successfully challenge the order and get a refund, he will have to deposit the amount back to BCCI with necessary accretions (accrued interest).

The framing of the sanction letter has left some of the senior BCCI officials surprised.

"Everyone knows that Mr Pandove was performing his duties as a treasurer. For all practical purposes, he was not the decision-making authority at that point in time. So why do you need to just insult him by writing that if there is any "wilful default on your part"," a senior official told PTI on conditions of anonymity.

The indemnity letter has been signed by secretary Amitabh Choudhary, but it is learnt that he was just asked to sign on the dotted lines.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

Cars Set Ablaze, Tear Gas Lobbed As Mosque Survey Leads To Clashes In Sambhal — WATCH
VIDEO: Cars Set Ablaze, Tear Gas Lobbed As Mosque Survey Leads To Clashes In Sambhal
Congress Demands Discussion On Adani, Pollution, Train Accidents During Parliament Winter Session
Congress Demands Discussion On Adani, Pollution, Train Accidents During Parliament Winter Session
Don't Get Fooled, Warns Tata Memorial As Sidhu Claims Neem, Haldi Cured Wife's Breast Cancer
Don't Get Fooled, Warns Tata Memorial As Sidhu Claims Neem, Haldi Cured Wife's Breast Cancer
Widowed Daughter Can Claim Deceased Father's Job, Says Allahabad HC
Widowed Daughter Can Claim Deceased Father's Job, Says Allahabad HC
Advertisement
ABP Premium

Videos

From Hating Computers to Building a Software Empire, The Inspiring Journey of ESDS CEO Piyush SomaniGautam Adani Faces Another Blow as SEBI Launches Probe Against Adani Group | Paisa LiveBigg Boss 18: Did Salman Khan Bully Arfeen Khan? Hrithik Roshan's Mind Coach Breaks Silence!Tamannaah Bhatia Has Vijay Varma as Bonus? Jimmy Shergill's Army Exam & Avinash Good Looks! EXCLUSIVE Interview

Photo Gallery

Embed widget